Ellington

JACKSON, Miss. (AP) — Mississippi Gov. Phil Bryant is backtracking from part of an executive order he issued in a dispute between the state's largest insurer and a hospital company.

Bryant signed a document Thursday saying he is rescinding the parts of his Oct. 22 order that would have required Blue Cross Blue Shield of Mississippi to resume paying in-network rates at Mississippi hospitals owned by a Florida company, Health Management Associates.

Bryant is leaving in place parts of his order that require Insurance Commissioner Mike Chaney to finish an inquiry into why Blue Cross excluded HMA hospitals from its network. The insurer originally excluded 10 HMA hospitals but later reinstated four.

Blue Cross sued to block Bryant's action, and U.S. District Judge Henry T. Wingate on Monday granted Blue Cross' request to temporarily block the governor's full executive order from taking effect.

Court records show that Blue Cross withdrew its lawsuit against Bryant on Thursday.

"I appreciate Blue Cross's willingness to re-engage in discussions with the hospitals to see whether there is room for a compromise that will benefit all involved, including most importantly the patients that Blue Cross insures and these hospitals serve," Bryant said in a news release Thursday. "I am also encouraged that four of the affected hospitals were recently readmitted to the Blue Cross network."

Wingate had set a Nov. 5 hearing to further explore Bryant's claims of harm that patients would suffer if Blue Cross doesn't contract with the hospitals. That hearing is now canceled because Blue Cross dropped its lawsuit.

"Although my attorneys and I still believe my original order would have more than likely been upheld in full by the courts, continued litigation and potential appeal would stretch well beyond the order's original 60-day expiration," Bryant said. "In light of the cost and time associated with protracted litigation, and because I believe more progress can be made on this issue outside of litigation, I am amending my order to remove those portions contested in federal court."