October 23, 2014

Ride provider terminates state contract

A firm which provides transportation to Medicare and BadgerCare Plus patients in Wisconsin has terminated its contract with the state. LogistiCare, which has had the contract for over a year, told the state Department of Health Services that, with utilization running more than twice what the company anticipated, it cannot sustain the program on the amount it bid. LogistiCare said the state mentioned only how many people were eligible for rides, not how many rides were needed, when it sought bids on the contract. “We are disappointed that the data was not made available in the RFP and that as a result the program implementation did not go well,” said Logisticare CEO Herman Schwarz in a letter to DHS. “The negative press has caused irreparable damage to our reputation in Wisconsin and nationally.”

READ: Logisticare termination letter (PDF)

“As a result of receiving this letter, the Department intends to rewrite and issue a new Request for Proposal (RFP) for a non-emergency medical transportation manager, with updated data, so we can secure a transportation manager who will be able provide this important benefit to our members as soon as possible,” said DHS Secretary Dennis Smith. Smith said the agency will work with LogsitiCare to continue providing service for the next 90 days. Smith said that the state does not intend to go back to the old county-based system, but intends to stay with a transportation manager. A DHS spokesperson said 670,000 Medicare and BadgerCare Plus patients are eligible for the rides to and from medical appointments.

READ: Statement from DHS Secretary Smith (PDF)