July 30, 2011

NEMT: What is LogistiCare?

LOGISTICARE - LogistiCare is a national non-emergency medical transportation (NEMT) management company. They do not provide the actual transportation. They act as broker for state government agencies, managed care organizations, hospitals, transit authorities, and school boards to manage and coordinate transportation for their customers which includes Medicaid and Medicare recipients, health plan members, special-needs students, and those eligible for ADA Paratransit. Utilizing it's network of more than 1,500 local commercial, public and non-profit transportation service providers; LogistiCare coordinates more than 25 million trips per year for its more than 8 million clients. Active in 38 states, it remains the largest NEMT broker in the United States. Founded in 1986, LogistiCare started out as a logistics software developer offering wireless data technology for the ambulance industry. By the mid-90's it had pioneered the NEMT brokerage system and would continue for the next decade to expand. In 2007 Providence Service Corporation acquired LogistiCare for $220 million as a wholly owned subsidiary. Founded in 1996 by Chairman and CEO Fletcher McCusker, Providence had done for Social Services what LogistiCare had done for NEMT: outsourcing services predominately provided to Medicaid recipients. As a provider of in-home government sponsored social work counseling, Providence offered to government social services a lower cost, and often more beneficial alternative to institutional ("bricks & mortar") settings by providing services directly to clients in the client's home. The purchase of LogistiCare has more than doubled Providence's revenues, and for the 2010 fiscal year represented 61% of total earnings. Providence Service Corporation is a publicly traded company and is listed as PRSC on the NASDAQ.

In researching this posting I used the information provided on the LogistiCare and Providence websites as well as the article: Providence Service (PRSC) — Look Past The Headlines To Find Value by Elie Rosenberg, an excellent work and well worth the read.


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2 comments:

Anonymous said...

When I saw your blog was like wow. Thank you for putting your effort in publishing this article.

vince rey said...

LOGISTICARE IS A JOKE. THEY ONLY CARE ABOUT MONEY, THEY ARE LATE FOR PICK UP AND DROP OFF %85 OF THE TIME. COMPANYS DONT WANT TO WORK WITH THEM BECAUSE THEY PAY VENDORS PENNYS FOR THIER HARD LABOR.