Sen. Tipping calls for rethinking Modivcare contract following bankruptcy announcement
AUGUSTA — Modivcare, the for-profit medical transportation company that was recently awarded a statewide transportation contract in Maine, has filed for Chapter 11 bankruptcy protections. Sen. Mike Tipping, D-Orono, called for a reexamination of the State’s decision to rely on the firm for statewide non-emergency transportation, which helps Mainers, especially in rural areas, get to medical appointments.
“Modivcare is bankrupt, they’re being delisted by Nasdaq and local transportation providers are concerned that they won’t even be paid for rides they’ve already provided,” said Sen. Tipping. “Let’s take a moment to reconsider dismantling our local non-profit transportation infrastructure and handing them control over the lives of so many vulnerable Mainers.”
Modivcare, formerly known as Logisticare, was awarded a 10-year, $750 million contract for statewide non-emergency transportation in 2023 over local non-profits that had been providing those services in several counties. Penquis and Waldo CAP are appealing that contracting decision, and the contract change has been stayed pending that proceeding.
“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,” Sen. Tipping continued. “Now that Modivcare has declared bankruptcy, the State should absolutely reconsider its decision for the good of the State of Maine.”
Last week, Modivcare declared bankruptcy and sent a letter to local transportation providers letting them know that payments for their services “will be addressed as part of the Chapter 11 process.”
Earlier this year, Sen. Tipping sponsored a bill that passed and went into law without the governor’s signature, LD 1451, which will convene a working group to re-examine community transportation planning in Maine.
###