LogistiCare Solutions informed the Wisconsin Department of Health Services on Tuesday its intent to terminate its contract providing non-emergency transportation services for the state’s Medicaid and BadgerCare Plus recipients.
“Yesterday, LogistiCare notified us that it plans to terminate its contracts with the Department of Health Services, effective in 90 days on February 17, 2013,” DHS Secretary Dennis Smith said this morning in a press release. “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.”
LogistiCare will continue to serve as transportation manager and provide the transportation services for the next 90 days.
In a letter to DHS, LogistiCare CEO, Herman Schwarz, said that the state failed to provide adequate utilization data when the contract was let out for bid. “Utilization is running more than twice what we anticipated and we cannot sustain the program on the amount we bid,” Schwarz said in the letter to DHS.
“We recognize that there were limitations to the original RFPs,” Smith said in response to the contract termination. “The Department had limited data to share regarding utilization of these services and prospective bidders, including LogistiCare, did not have all of the data needed to submit a reasonable estimate of the costs to adequately staff to serve as the state’s non-emergency medical transportation manager. This situation will be corrected and we believe a new contract can be secured that is both financially viable for a transportation manager and will still achieve savings for the state.”
LogistiCare has been under fire since they took over as transportation manager for the programs – with consumers complaining of late and no-show rides.