Good morning, everyone,
This is Dawn. We continue to receive many questions kind of asking the same thing - how has Modivcare's bankruptcy changed the market or altered demand, so I wanted to take personally take another opportunity address this important topic because it still remains of great concern for many providers in various states.
First and foremost, you have to understand, the elderly population and the need for various support services is only going to continue to grow regardless of what happens with Modivcare or any other broker. Nothing is going to change that.
The real question is how does what happened with Modivcare effect you, the transportation provider, to make money if you are dependent on the broker? Modivcare's filing has definitely hurt a lot of providers in various states where they have put the financial "squeeze" on providers by working to reduce provider rates of reimbursement in an effort to strengthen their bottom line. This has not happened in every state because not all states are the same.
Remember, every state has its own Medicaid plan, transportation benefit, and procurement process. This fragmentation and variation between states means Modivcare’s and other broker contracts, policies, and vendor requirements are all customized to fit those state-level terms. In fact, it is this fragmentation and variation why you always hear Joel clowning the "national accreditation anthem" being spewed by various crowds in the industry. It is ridiculous because it is just not applicable or practical because of the lack of uniformity and policy continuity between states.
Ultimately, ModivCare’s filing is part of a "restructuring process" versus
a full operational shutdown. They are still under contract in multiple
states and remain operational, but this event should definitely open your
eyes for the need to strengthen direct relationships with facilities and
work to cultivate direct pay contracts and agreements outside of the brokers
and managed care organizations systems.
Again, Modivcare's filing changes nothing regarding the growing demand in any state, but it really needs to be an eye opener for the need
to transition your business strategies and divest away from being so
broker dependent. I strongly encourage all of you to study Joel's business concepts and overall strategies for making money.
Thank you again for your great questions.
Thank you, Dawn Velasquez Support Team | 
