DORAL, Fla.—Working against a ticking time bomb, the Florida Alliance of Home Care Services is striving to get Blue Cross/Blue Shield of Florida to reconsider its decision to terminate vast numbers of HME provider contracts, according to a FAHCS spokesman.

“We are less than 60 days away from the last day most Blue Cross/Blue Shield providers will be able to [serve the Blues patients],” said Sean Schwinghamer, executive director of FAHCS. “We have been trying to schedule a meeting with Blue Cross/Blue Shield to discuss this. We hope to meet with them to offer our alternative.”

Officials at BCBS of Florida could not be reached for comment.

Beginning in the spring and culminating July 27, hundreds of Blue Cross/Blue Shield providers across Florida were notified that their contracts were being terminated at the end of 90 days. The notices were an especially hard blow since Florida providers are also grappling with the threat of Medicare competitive bidding—two of the Round 1 CBAs are in Miami and Orlando—and issues with Florida Medicaid, both of which would also push providers out of payer programs, Schwinghamer pointed out.

No explanation for the terminations was given, and providers from across the state were unable to gain any information from BCBS, they told FAHCS. However, published reports indicate that BCBS invited some large regional providers to participate in a competitive bidding process in an effort to shave administrative costs.

According to TCPalm, an online newspaper that covers Florida’s Treasure Coat and Palm Beaches, the results of that process mean only three HME providers will be allowed, as of Nov. 1, to serve BCBS patients in the populous Treasure Coast area.

“Liberty Medical Supply and Physician’s Choice Respiratory Services, Inc., both in Port St. Lucie, and Rotech Oxygen & Medical Equipment in Stuart remain as the lone Treasure Coast suppliers after the bidding,” Jonathan Mattise wrote in TCPalm. That information, he reported, came from a BCBS list sent to Oxygen Plus in Vero Beach.

According to the list, the news report said, the BCBS bid limited provider offices in the state to 100 and comprises 41 companies.

Schwinghamer, who said he has been taking calls from providers from throughout Florida, said hundreds of them would be severely affected by the BCBS move. Of the scores of providers FAHCS has been in contact with, he said, “most are over 65 percent Blue Cross Blue Shield.” Some have more than 1,000 BCBS patients, and one has been a BCBS supplier for 24 years, Schwinghamer said.

After learning of the terminations, FAHCS President Roger Ribas sent a letter to BCBS asking that they be reconsidered. “We request that you reconsider your mass termination due to the many negative effects it will have on our state and its patients,” Ribas wrote. “These terminations will force lay-offs, the firing of gainfully employed people state wide and it will also force the closure of many businesses during already extremely difficult economic times.”

Ribas proposed a possible alternative that would help BCBS shave costs and still allow providers to remain in business. Under the proposal, terminated providers would “come under the umbrella of VGM Homelink,” the Waterloo, Iowa-based service group’s nationwide HME services coordinator.

“Under this plan, BCBS will have one source with which to bill and coordinate new patients, existing patients can retain the same quality level of service from the same qualified providers with whom they have been working and your cost savings can be replicated without having to negotiate with numerous providers statewide,” Ribas wrote.

Schwinghamer said BCBS has acknowledged receiving the letter. “Things are moving forward the best they can at this time,” he said. “We are hoping something can come from this. We are using every means available to us to help providers stay in business.”