HME providers take hit following Univita collapse


A blue door with two small holes in it.Late last month, Univita Health Inc. filed for Chapter 7 bankruptcy. The move came shortly after the Miramar-based home health services provider shuttered its doors and terminated its Florida Medicaid contracts.

Florida’s Agency for Health Care Administration (ACHA) has told providers they must continue to provide services to patients for services that were previously authorized or scheduled as the state transitions, regardless of whether that provider is participating in the plan’s network.

This is creating a great deal of hardship for HME providers, many of whom are not being paid and now must find new networks.

In 2014, ACHA contracted with Univita to administer the program for 10 of the 14 participating health plans, covering an estimated 2 million lives. Less than a year later, ACHA announced Univita was no longer processing prior authorizations and providers have been advised to contact health plans directly.

Although no one had a crystal ball, problems with Univita began to crop up shortly after the state contracted with the company. Many providers either were not being paid or were not getting referrals. Not only was Univita managing and coordinating care for health plans, but it also was an HME provider leaving many in the healthcare industry to question the legality of the deal.

Through its Chapter 7 filing, Univita is looking to liquidate its remaining assets, leaving behind a trail of unpaid creditors.

The Health Law Offices of Anthony C. Vitale is working with providers to determine the parties at fault and to what extent financial liability may attach to these parties. If your practice has been impacted by these developments, please feel free to contact us to find out more information about your options.

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