Senderra RX Partners, LLC v. Blue Cross and Blue Shield of North Carolina

CourtCourt of Appeals for the Fourth Circuit
DecidedJune 1, 2022
Docket21-1549
StatusUnpublished

This text of Senderra RX Partners, LLC v. Blue Cross and Blue Shield of North Carolina (Senderra RX Partners, LLC v. Blue Cross and Blue Shield of North Carolina) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Senderra RX Partners, LLC v. Blue Cross and Blue Shield of North Carolina, (4th Cir. 2022).

Opinion

USCA4 Appeal: 21-1549 Doc: 46 Filed: 06/01/2022 Pg: 1 of 18

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 21-1549

SENDERRA RX PARTNERS, LLC,

Plaintiff – Appellant,

v.

BLUE CROSS AND BLUE SHIELD OF NORTH CAROLINA,

Defendant – Appellee.

Appeal from the United States District Court for the Middle District of North Carolina, at Greensboro. Catherine C. Eagles, District Judge. (1:18-cv-00871-CCE-JEP)

Argued: May 4, 2022 Decided: June 1, 2022

Before KING, AGEE, and HEYTENS, Circuit Judges.

Affirmed by unpublished opinion. Judge Agee wrote the opinion, in which Judge King and Judge Heytens joined.

ARGUED: Adam Pierson, DLA PIPER LLP (US), Dallas, Texas, for Appellant. Adam Howard Charnes, KILPATRICK TOWNSEND & STOCKTON LLP, Winston-Salem, North Carolina, for Appellee. ON BRIEF: Marc Katz, Micala Bernardo, Breegan O’Connor, DLA PIPER LLP (US), Dallas, Texas; Paul K. Sun, Jr., Kelly Margolis Dagger, ELLIS & WINTERS LLP, Raleigh, North Carolina, for Appellant. Chad D. Hansen, Whitney R. Pakalka, KILPATRICK TOWNSEND & STOCKTON LLP, Winston-Salem, North Carolina, for Appellee. USCA4 Appeal: 21-1549 Doc: 46 Filed: 06/01/2022 Pg: 2 of 18

Unpublished opinions are not binding precedent in this circuit.

2 USCA4 Appeal: 21-1549 Doc: 46 Filed: 06/01/2022 Pg: 3 of 18

AGEE, Circuit Judge:

Senderra RX Partners, LLC (“Senderra”) appeals the district court’s grant of

summary judgment in favor of Blue Cross and Blue Shield of North Carolina (“Blue

Cross”), arguing that the district court erred when it concluded that Senderra was not

aggrieved by Blue Cross’ purported violations of the North Carolina Pharmacy of Choice

statute. Finding no error, we affirm.

I.

A.

Blue Cross is an insurer whose operations include a specialty pharmacy network

(“the Network”) in North Carolina. 1 To join the Network, prospective pharmacies must

complete both a credentialing and contracting process. Blue Cross’ website includes

instructions on the credentialing process, which requires that the pharmacy obtain, as

relevant here, a pharmacy permit issued by the North Carolina Board of Pharmacy

(“NCBOP permit”) as required under North Carolina law, see N.C. Gen. Stat. § 90-

85.21(a); 21 N.C. Admin. Code 46.1401(a), and an accreditation certificate from the

Utilization Review Accreditation Commission (“URAC accreditation”). 2 The contracting

1 Given the standard on summary judgment, we recite the facts in the light most favorable to the non-moving party, Senderra. Garofolo v. Donald B. Heslep Assocs., Inc., 405 F.3d 194, 198 (4th Cir. 2005). 2 “URAC is an independent body that accredits specialty pharmacies and other healthcare entities.” J.A. 466. Blue Cross required URAC accreditation because it was “considered the gold standard for specialty pharmacies . . . . It ensures that the specialty pharmacy meets a rather rigorous set of standards for quality.” J.A. 509. 3 USCA4 Appeal: 21-1549 Doc: 46 Filed: 06/01/2022 Pg: 4 of 18

process then “confirms that each specialty pharmacy applying to join the Network meets

the applicable contract requirements and secures the pharmacy’s agreement to the

contractual terms that will govern its participation in the Network.” J.A. 308. Those terms

are included in a Network Participation Agreement (“NPA”).

In 2018, Blue Cross updated the terms of the Network and, among other changes,

replaced the requirement that participating pharmacies maintain a staffed business office

in North Carolina with a requirement that there be a dispensing pharmacy location in North

Carolina (“dispensing-location term”). Blue Cross then solicited from its existing Network

members applications to join this new specialty pharmacy network. Its solicitation

specified that “pharmacies that d[id] not meet the requirements for participation in the new

specialty pharmacy network w[ould] receive [a] notice of removal” from it. J.A. 672.

Interested pharmacies had to “submit all necessary paperwork that [Blue Cross] require[d]

by [October 1] for a [January 1] entry date.” J.A. 713.

Along with this solicitation, the participating pharmacies received the updated NPA

and NPA Addendum (“Addendum”). Those materials identified the new dispensing-

location term, as well as the licensing, certification, and accreditation requirements.

Specifically, the Addendum indicated that the pharmacies “must have a dispensing location

within the state of North Carolina.” J.A. 713. The Addendum also detailed that each

pharmacy must “maintain [URAC] Specialty Pharmacy accreditation and provide proof

thereof.” J.A. 709. In addition, the NPA established that the participating pharmacies must

hold the necessary licensing and certification “under North Carolina and any other

applicable law.” J.A. 687. Finally, the NPA referenced “Policies and Procedures” that were

4 USCA4 Appeal: 21-1549 Doc: 46 Filed: 06/01/2022 Pg: 5 of 18

listed on Blue Cross’ website, J.A. 689, which explained that each specialty pharmacy

location was required to hold an NCBOP permit and URAC accreditation, as well as the

Provider Manual, which detailed the credentialing process.

In actual application, Blue Cross permitted pharmacies to satisfy the dispensing-

location term through a corporate affiliate, 3 but did not expressly offer pharmacies this

option. Instead, “[w]hen a pharmacy communicated their intent to satisfy [the dispensing-

location term] through corporate affiliation[,] [Blue Cross] discussed with them . . . how to

go about doing that.” J.A. 1139.

B.

Senderra is a Texas-based specialty pharmacy that first applied to join the Network

in 2013. After initially submitting an insufficient application for lack of proof of an

NCBOP permit or URAC accreditation, it was admitted into the Network in 2015.

Senderra received Blue Cross’ updated Network materials on May 3, 2018,

acknowledging on May 7, 2018, that it likely “ha[d] to go through a whole new application

process to be in [Blue Cross’] new Statewide Specialty Pharmacy Network.” J.A. 374.

Senderra’s “biggest concern [was] the dispensing location within [North Carolina].” J.A.

373. Because it only had “a staffed business office” in North Carolina, id., it recognized

that the dispensing-location term “w[ould] preclude [it] from being able to qualify under

the new terms and conditions and w[ould] result in its termination from the specialty

3 Corporate affiliate agreements involve “the parent or umbrella organization . . . contract[ing] with a payer on behalf of all of those locations or entities within its structure.” J.A. 871. 5 USCA4 Appeal: 21-1549 Doc: 46 Filed: 06/01/2022 Pg: 6 of 18

network,” J.A. 755. Nonetheless, Senderra “decided to apply into the network first and get

an anticipated rejection letter.” J.A. 761.

Senderra submitted its application on June 1, 2018. After Blue Cross confirmed that

Senderra only had a staffed business office in North Carolina, it sent Senderra a termination

letter dated July 11, 2018, stating that Senderra’s NPA would terminate effective October

15, 2018, for failure to “satisfy the requirements for continued participation in [the

Network].” J.A. 173.

Upon receipt of this letter, Senderra contacted Blue Cross “to inquire about . . . the

reason for termination,” J.A. 638, although it “assum[ed]” it had been terminated due to its

lack of a dispensing location in North Carolina, J.A. 639. As Blue Cross confirmed on July

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Senderra RX Partners, LLC v. Blue Cross and Blue Shield of North Carolina, Counsel Stack Legal Research, https://law.counselstack.com/opinion/senderra-rx-partners-llc-v-blue-cross-and-blue-shield-of-north-carolina-ca4-2022.