Of course not, but I am sure that this hospital had to sign provider contracts with the state and the Medicare intermediary in order to recieve Medicare/Medicaid reimbursement. Not quite the same thing as the McDonalds example.
It would be wonderful if this Catholic hospital would drop out of the government system and treat the truly poor on a charity basis. But don't hold your breath waiting for that to happen.
They have similar arrangements with all insurance plans. That doesn't mean that Blue Cross therefore can dictate what a Catholic hospital must do.
Like I said, codswallop.