The heads of seven Hawai'i community health centers are urging Gov. Lingle to rescind an estimated $1.5 billion in Medicaid contracts to two for-profit Mainland companies.

The board presidents from the centers wrote to Lingle last week saying they had serious concerns over the state Department of Human Services' award of the Quest Expanded Access Medicaid contracts for more than 37,000 aged, blind and disabled people. They raised a number of issues similar to those voiced by AlohaCare, a Honolulu-based nonprofit health plan that lost out in the selection process.

The state Department of Human Services awarded the contracts to the lowest bidders in February, giving part of the work to Wellcare Health Plans Inc. of Tampa, Fla., and the remainder to UnitedHealth Group Inc.

"We're just scared overall that it's going to affect the healthcare industry in Hawai'i," said Elizabeth Fien, board president of the Waimanalo Community Health Center. She said as far as she knew Wellcare and UnitedHealth had yet to contract with any service providers here. That could disrupt patient treatment.

State Department of Human Services director Lillian Koller issued a statement saying it would be inappropriate to comment in detail on the situation, since the state's Procurement Office is considering AlohaCare's appeal of the awards. She also noted that the concerns were being raised by a group with ties to the insurer.

"It is important to note that the seven health centers who sent this letter ... are among the 13 health centers who own AlohaCare," Koller said in a statement.

She said that AlohaCare filed a protest to the award on Feb. 8, and that is "still pending decision" by the state's chief procurement officer.

AlohaCare said that community health centers were its founders and that some of the centers still have representatives on its board. But as a nonprofit, it said, it does not have owners.

AlohaCare raised several concerns. Earlier this year, UnitedHealth units were accused by state authorities of claims processing failures in California and fraudulent rate-setting in New York. UnitedHealth is the largest U.S. health insurer.

Wellcare's chief executive officer resigned earlier this year and it is under investigation by the FBI and Florida officials for possible government overpayments.

AlohaCare also alleged the DHS is allowing the for-profit companies to skip paying the state's 4.265 percent premium tax, something that could amount to tens of millions of lost tax revenue.

Ed Kemper, an attorney representing AlohaCare, said that depending on the ruling, AlohaCare could seek further reviews of the contract, including going to court.

Fien and board presidents from six other community health centers on O'ahu and the Big Island also said they are worried that UnitedHealth and WellCare may transfer some work done in Hawai'i to the Mainland.