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Update Non-Emergency Medical Transportation (NET) Services Appeal

June 14, 2024 – Bangor, ME- In October 2023, the Maine Department of Health and Human Services awarded ModivCare, a large, for-profit, out-of-state company, the Non-Emergency Medical Transportation (NET) contract for the entire State of Maine. The decision would have ended Penquis and Waldo CAP’s contract as NET brokers for Regions 3, 4, and 5 (which cover Penobscot, Piscataquis, Kennebec, Somerset, Waldo, Knox, Lincoln and Sagadahoc Counties) on July 1, 2024. We held a strong conviction that fundamental errors in the review and scoring of the RFP rendered the award irredeemably flawed and filed an appeal with the State.

In late April 2024, the State of Maine Bureau of General Services rejected Penquis and Waldo CAP’s appeal of the decision to award all Non-Emergency Medical Transportation contracts to ModivCare. Due to the profound and rippling impacts of this decision, the flaws in the RFP process, and our steadfast belief in the merits of our case, Penquis took immediate action. Together with Waldo CAP, we are appealing this decision, and we petitioned for a stay of the contract through the appeal process.

On June 3, 2024, we were notified by the Division of Administrative and Financial Services (DAFS) and the Bureau of General Services (BGS) that our request for a stay of our NET services contract was granted. The current NET contracts have been extended through December 31, 2024, which means that we will continue to provide non-emergency medical transportation for Medicaid members through the end of 2024. 

This is good news and allows us to continue providing high-quality NET services without interruption and allows more time to raise awareness about why this decision is the wrong one for the State of Maine and its people. This decision is likely to impact the availability of other transportation services for struggling Mainers across our state. It also goes directly against the intent of the program as being delivered through eight distinct regions to acknowledge the unique variances of each region and will have a very real economic impact with almost $1 billion leaving our state and going to a for-profit entity. In addition, for Penquis, Waldo CAP, and KVCAP, the job loss would be significant and displace dedicated volunteer drivers, many of who have been driving for us for decades.  Given the significant potential impact of this decision on so many, it is critically important that we make sure that Maine people are aware of the impact.

In the fall regional public forums will be held with an opportunity for community members to come together to explore what is needed to improve access to transportation across our State so that we can bring these policy solutions to our legislators in the upcoming legislative session. We will continue to work on solutions to prevent the continued fracturing of our state’s transportation systems and to establish public policy that considers what is best for Maine people and our state’s economy.

Kind Regards,

President and CEO