Medical Mutual denying hospital care?

From Shirlee Zerkel, February 29, 2008
Subject: Another upsetting story from a retiree spouse!
The spouse of a Lima area retiree was admitted to the hospital directly from ER because of an infection she had. The infectious disease doctor on the case diagnosed that she had MRSA in the skin on her face. She also was suffering from fever. After the hospital stay which included IV medications, she receives a letter from STRS Medical Mutual Insurance that the hospitalization was unneeded and could have been monitored at home. She later received a letter saying that the decision had been appealed (the doctor must have appealed it) and that Medical Mutual did approve the stay but there was no mention in the letter that the insurance company would pay. Since when does one of the companies that STRS uses have the right to play doctor and say whether a person should or should not be hospitalized.
Shirlee Zerkel