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Medical Transportation Woes Continue for Metro Detroit Medicaid Recipients

Updated: Monday, 10 Jan 2011, 10:43 PM EST
Published : Monday, 10 Jan 2011, 10:44 PM EST


Lives are being put at risk as a medical transportation company drops the ball. It is an issue we brought you last week, and the situation is not getting any better for sick people who rely on the company.

"Over the past few days, what (has) been happening is I'm not able to go to dialysis because I have no transportation," said Darnell Dawson.

"This is life and death for a dialysis patient," said caregiver Leeneta Ingraham.

She is frustrated. Dawson is not her only client who cannot get to dialysis. Ingraham said another client's condition was so severe he ended up in the hospital.

"We had to send him … to the ER because he was threatened with either a stoke or a heart attack," Dawson said.

Michigan is using a company called LogistiCare to arrange transportation for Medicaid recipients in the Detroit metro area who need services, such as dialysis and chemotherapy.

However, since LogistiCare took over on January first, there have been many who say they are not getting picked up for crucial appointments.

Tiffany Regins' father is one of them.

"Ever since this new transportation thing started with the state, he's been waiting like a whole week to go," she said. "A lot of these people are stuck and can't get to the doctor."

We took their concerns straight to the Michigan Department of Community Health. A spokesperson said initially LogistiCare was dealing with a shortage of transport companies, but now more companies are on board and the services will get better as the program develops.

People like Dawson hope that happens sooner than later.

"The longer they don't have dialysis -- you get weak and you just can't make it anymore," he said.

"Get your act together. We have lives out here and people that (have) a condition. It's serious," Ingraham said.


LogistiCare: Stop The Unfair Wage War

Providence Service Corporation acquired LogistiCare for $220 million in 2007

FY 2011, the Department of Health and Human Services spent 19.4 Billion Dollars in contracts. The third largest spender next to the DOD and the DOE.

Providence maintains 773 Social Services and Non-Emergency Transportation Services contracts in 35 states, the District of Columbia and British Columbia as of September 30, 2007.

"Despite being under bid by our competitors, we were successful winning five of five new state contracts and won eight of nine incumbent contracts up for rebid," commented Fletcher McCusker, Chairman and CEO.

LogistiCare pays lobbying firms:
States lobbied in: Arkansas, Colorado, Connecticut, Florida, Georgia, Idaho, Kentucky, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, Wisconsin

Total LOGISTICARE SOLUTIONS Contributions to Candidates and Party Committees from 2003 to 2011- $617,303

"If we fail to establish and maintain important relationships with officials of government entities and agencies, we may not be able to successfully procure or retain government-sponsored contracts, which could negatively impact our revenues", according to 'Form SC 13 G regarding Providence Service Corporation' (LogistiCare Solutions), filed with the' United States Securities and Exchange Commission, on March 30, 2012'

For fiscal 2011, the Providence Service Corporation expects revenue in the range of between $944-$949 million.

As of Dec. 30, 2010
Basic Compensation:
Name Position Fiscal Year Total
Fletcher McCusker Chairman of the Board, Chief Executive Officer 2,943,920
Michael Deitch Chief Financial Officer, Vice President, Corporate Secretary, Treasurer 1,408,590
Herman Schwarz Chief Executive Officer of LogistiCare Solutions, LLC 1,416,060
Craig Norris Chief Operating Officer 1,558,460
Fred Furman Executive Vice President, General Counsel 1,437,950