Thursday, October 06, 2005

Medicaid contract awarded

Source: KCS
Credit: The
Kansas City Star
Thursday, October 6, 2005
Section: METROPOLITAN, Page B3

JEFFERSON CITY - Missouri awarded a contract Wednesday for medical transportation services for the poor, choosing a company that won the business last year but lost it after protests by another bidder.

The Office of Administration said it chose Atlanta-based LogistiCare Inc. for the new contract to provide Medicaid patients with nonemergency rides to places such as doctor's offices.

The contract will cost the state $25.6 million a year.

That compares with $40.4 million the state paid in the last fiscal year to the current contractor, Medical Transportation Management Inc. of Lake St. Louis, Mo.

Last week, the attorney general's office announced that Medical Transportation Management was paying $2.4 million to resolve a state investigation.

Attorney General Jay Nixon said he looked into concerns about Medicaid fraud, contract problems and antitrust violations.

MTM said its contract had been a good deal for the state, which paid a flat monthly rate even as the clients served and the number of trips grew.


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