Non-emergency transportation company files for bankruptcy after awarded millions by Maine DHHS

BANGOR, Maine (WABI) – A transportation company that was awarded a 10-year $750 million contract from the Maine Department of Health and Human Services two years ago, has filed for bankruptcy.

Lawmakers on both sides of the aisle are urging the state to reconsider the award to Modivcare.

The Colorado based company provides non-emergency medical transportation to half of Maine’s 16 counties.

Senate Republican Leader Trey Stewart said: “I’ve heard from numerous constituents with complaints that ModivCare is not sending necessary documentation, leaving patients stranded and struggling for reimbursement. MaineCare transportation complaints have increased exponentially since DHHS took these contracts away from local nonprofits.”

Sen. Mike Tipping, D-Penobscot, also released a statement on the bankruptcy:

“Removing this contract from local non-profits and putting it in the hands of a financially unstable, out-of-state company could seriously jeopardize a wide range of community transportation services in Penobscot County for veterans, poor people and the elderly.”

“Now that Modivcare has declared bankruptcy, the State should absolutely reconsider its decision for the good of the State of Maine.”

Penquis and Waldo CAP applied for the award, and representatives are appealing the contracting decision.

The Press Secretary of Maine DHHS sent WABI a statement regarding the filing.

“The Department is aware of Modivcare’s voluntary Chapter 11 bankruptcy filing and is monitoring the situation closely. We understand the importance of these transportation services and our priority is to ensure that MaineCare members continue to get to their appointments without disruption and transporters are appropriately paid.

“At this time, Modivcare has assured Maine DHHS that transportation will continue as normal and that transporters, vendors, and employees will be paid in a timely manner. We remain in regular communication with Modivcare, holding the company accountable to its contractual obligations, and are closely monitoring the process. If MaineCare members and/or transporters experience issues with Modivcare, they should contact Modivcare directly.”

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