State asks Attorney General to Investigate Non-Emergency Transportation Sub-Contractors

Jefferson City - Missouri Commissioner of Administration Mike Keathley today wrote Attorney General Jay Nixon requesting his office to investigate claims that non-emergency medical transportation sub-contract providers are violating state or federal anti-trust laws.

Last month Keathley awarded a new non-emergency medical transportation contract to Logisticare to provide services to Missouri residents.  Like its predecessor, Logisticare has sought to sub-contract transportation services to local providers throughout the state.  With the new contract scheduling to take effect on Nov. 5, reports of possible anti-trust violations involving some sub-contractors have been made to Keathley’s office.

The reports indicate that many of the sub-contractors are engaging in unfair trade practices by refusing to negotiate with Logisticare in a lawful manner and that there may be collusion involved in an attempt to drive up prices that would take more money from Missouri taxpayers.

“If these reports are accurate they constitute serious violations of both state and federal law,” Keathley said.  “These allegations merit a full and thorough review by the attorney general’s office so that Missouri taxpayers can have the peace of mind they deserve.  It is imperative that the state send a loud and clear message that any type of unlawful activity will not be tolerated.”

Keathley secured a new contract that will cost the state $25,551,000.00 per year in state and federal funds, a significant cost savings from the previous year’s $40,382,000.00 price tag and mandates better customer service and fiscal accountability than the old contract.  The new contract will also secure a better Medicaid reimbursement rate from the federal government which will help offset state costs.

A copy of Keathley’s letter to Nixon is attached.

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