Parrish Medical Center Issues Notice of Termination to Blue Cross, Blue Shield of Florida

Titusville, FL (April 15, 2025)—Parrish Medical Center (PMC) has issued a notice of contract termination to insurance giant, Blue Cross and Blue Shield of Florida (BCBS), effective July 14, 2025. This decision was not made lightly.

“We have tried in good faith to reach an agreement with BCBS; unfortunately, we could not arrive at an arrangement that was fair to the hospital and ultimately, to the people we serve,” said Parrish Healthcare President/CEO George Mikitarian.

Parrish Medical Center joins hospitals and health systems nationwide in taking a more aggressive stance in negotiations with insurers. According to Becker’s Hospital Review article titled, A shift in hospital-payer ‘power dynamics’, “As reimbursement pressures mount and administrative burdens grow, hospitals and health systems are adopting a firmer stance in negotiations with payers — especially around Medicare Advantage. Some are even walking away from low-yield contracts…”

“We cannot continue to operate at a loss with Blue Cross, while they reap billion-dollar profits year-over-year. We charge patients less than all other Brevard hospitals for a number of services despite facing the burden of rising costs, diminishing reimbursements, and being forced by insurers to navigate burdensome administrative roadblocks to get medically necessary patient care authorized,” said Mikitarian.

“We deserve to be paid fairly for the authorized care we provide without retrospective denials and recoupment of payments made for services provided in good faith to Blue Cross beneficiaries. Patients and providers shouldn’t have to worry about whether the needed medical care will be approved by the insurance company,” added Mikitarian.

Parrish Medical Center wants a good relationship with BCBS. Good-faith negotiations continue; however, if BCBS remains firm in its position, PMC will have no recourse but to terminate its relationship. The effect of the contract termination with BCBS will include:

• PMC will be considered a non-par facility with BCBS (out of network) on July 13, 2025. BCBS patients using PMC after July 13, 2025 will be responsible for a larger portion of their bills.
• Parrish Medical Group will continue to be in network and is under contract with BCBS through July 31, 2025.
• There is no impact on use of emergency services; those will continue to be covered.
• For maternity care, where insurance is concerned, under Florida law a woman who begins receiving pre-natal care at any point in her pregnancy must receive continued care and coverage until completion of postpartum care.
• Parrish Healthcare’s association with BCBS is separate from independent physicians’ relationships with BCBS.

For a list of insurers with which Parrish Healthcare (Parrish Medical Center and Parrish Medical Group) participate is available by visiting: https://www.parrishhealthcare.com/patients-visitors/financial-services/insurance-affiliate/.

Frequently Asked Questions - Effect of Blue Cross and Blue Shield (BCBS) Contract Termination

What is Parrish Medical Center’s (PMC) timetable for ending its relationship with BCBS?
We are an independent, public, not‐for‐profit community health care system. BCBS is a giant billion‐dollar insurance companies. The decision to terminate our relationship was not made lightly. We wanted to arrive at an arrangement beneficial to everyone. What we cannot do, regardless of the size of BCBS, is lose money in our dealings with the insurance giant. The effective date of termination is July 14, 2025. Our intent is, if BCBS is willing to come to reasonable terms with us, we’re willing to sign contracts at a reasonable rate for the services we are providing.

Why take this action now?
We cannot continue the financial loss being experienced with the current contracted rates being paid by BCBS. BCBS will claim that it is trying to keep health costs low. It’s therefore important for us to point out that PMC already has the lowest charges of any Brevard hospital for a number of services. BCBS reimbursement rates hit us harder than other hospitals. We cannot operate at a deficit with an insurer. BCBS will claim that their payment to PMC is similar to what they are paying other hospitals in Brevard County, but because we are the low‐cost provider for a number of services, they are actually paying us substantially less. It is our contention that the rate BCBS pays PMC is substantially less than all the other insurers and if the other insurers were at the same rate we would be driven out of business. If, for example, BCBS reimburses all hospitals on average at 45 cents on the dollar, because PMC is thirty (30%) to forty‐five (45%) percent lower in charges than the other hospitals, BCBS’s payment to PMC is thirty (30%) to forty‐five (45%) percent less. What we want instead is a fair agreement with BCBS.

What does this mean for BCBS members?
BCBS members can continue to use Parrish Healthcare facilities for emergency services. However, as of July 14, 2025, we will be considered a non‐par facility for BCBS. For non‐emergency services, we would fall under the respective plans’ provisions for non‐par health services.

What about BCBS members with long‐term issues, like cancer, heart disease or other serious problems that might affect their ability to see their doctors?
Only services provided by PMC are affected; it is the BCBS contract with the hospital that is being ended. Patients will need to contact BCBS to make any necessary changes to their providers.

Why hasn’t an agreement been reached?
BCBS’s position results in Parrish Healthcare accepting financial losses and rates considerably less than our cost, not considering inflation and what they are paying to other larger health care systems. This is neither possible nor acceptable. We continue to be lowest cost provider of health care in the area.

Will PMC still see BCBS members? If so, how will it work from this point forward?
BCBS members are covered if they come to the hospital for emergency services. Nonemergency services will be accepted through 7/14/2025 and will be handled on a non‐par basis in accordance with the members’ employer health plans after 7/14/2025, unless an agreement is reached.

Why doesn’t Parrish Healthcare just accept what BCBS is offering?
No one, non‐profit or not, can operate at a loss or accept rates grossly lower than what these insurance giants are paying others for the same services.

What about maternity care, if a BCBS member is pregnant?
Where insurance is concerned, under Florida law a woman who begins receiving pre‐natal care at any point in her pregnancy must receive continued care and coverage until completion of postpartum care.

Are doctors affected? Are their contracts with Blue Cross being terminated?
Doctors have their own relationships with insurance companies that are separate from the hospital.

Will Medicare patients with BCBS supplements be able to come to PMC?
Yes, Blue Cross is required to follow Medicare policies, so if Medicare pays, Blue Cross must pay the balances after Medicare. There is no change to persons with Blue Cross Medicare supplements.

What about the BCBS Federal Employee Program? Will people in this program still be able to come to PMC?
If employees have the standard option, PMC will be a non‐participating hospital as of July 13, 2025. Under the basic option there is no coverage at non‐participating hospitals other than legitimate emergency services, which are covered.

I am a BCBS member and am scheduled for surgery at PMC on July 15, 2025. Will I be covered?
There is no coverage after July 14, 2025, unless you have a PPO, which will mean you can come, but will have out‐of‐network benefits.

If I come to PMC after July 14, 2025, what percentage of my bill will BCBS pay?
Even if Blue Cross terminates its agreement with PMC, under most contracts BCBS still pays a significant percentage of a patient’s bill for hospitalization; individual policyholders should feel free to check with PMC’s business office for specifics. We can estimate costs, balances, what BCBS will pay, etc.

I am undergoing treatment for an ongoing medical condition. How will BCBS deal with me?
Patients with BCBS who are undergoing active treatment for such conditions or services as: surgery and follow up care; physical therapy; radiation oncology and chemotherapy can continue receiving these services at PMC without change to their insurance benefits.

For a list of insurers with which Parrish Healthcare (Parrish Medical Center and Parrish Medical Group) participate is available by visiting our Insurance Affiliate landing page.