CareCentrix loses Cigna contract

Wednesday, November 30, 2005

MELVILLE, N.Y. - Gentiva's managed care network, CareCentrix, in late October lost a Cigna HealthCare contract for DME and respiratory therapy services to Apria Healthcare.
CareCentrix held on to its contract for direct home nursing and other services, but the loss will likely mean a $40-million hit for fiscal year 2006, according to comments made by company officials during an Oct. 28 conference call.
Days after the loss was announced, however, CareCentrix renewed its Cigna contract for home nursing and home infusion services, as well as specialty medical equipment, through Jan. 31, 2009.
Cigna tapped Apria as its preferred provider of home oxygen, respiratory equipment and services, home medical equipment and enteral nutrition, beginning Feb. 1, 2006.
Apria pointed to the Cigna business, worth a reported $60 million, as proof that things in Lake Forest, Calif., are on solid footing, despite lower-than-expected earnings for the third quarter and a decision to take itself off the market (See story page 17).
Gentiva and Apria have crossed paths before. In January 2004, Apria said good-bye to millions of dollars in business when it decided that it no longer wanted to participate in Gentiva's CareCentrix managed care network. Soon after that, Rotech signed on as a CareCentrix preferred provider for DME and respiratory therapy services.