Providence Service Corporation's LogistiCare Subsidiary Announces Non-Emergency Medical Transportation Contracts Worth Over $11 Million Annually in Florida
TUCSON, Ariz., Nov. 25 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced that its LogistiCare subsidiary, the nation's largest coordinator of non-emergency transportation (NET) services, has received notice of award from the State of Florida Commission for the Transportation Disadvantaged to provide Medicaid non-emergency transportation services to both Miami-Dade and Volusia Counties. The award, estimated to be worth $14 million in revenue over the initial 18 month term, is subject to finalized contracts and various processing procedures.
LogistiCare has served Miami-Dade County in this capacity since 1989 and the contract renewal is the result of a competitive RFP process. The renewal has an initial value of $11 million and a contract period of January 1, 2010 through June 30, 2011, for an effective annual contract value of approximately $9.3 million. There is also the potential for three additional one-year renewals.
LogistiCare was awarded a new contract for Volusia County on the same terms as the Miami-Dade contract. The Volusia County contract has an initial contract value of approximately $2.9 million for the January 1, 2010 through June 30, 2011 period, or an effective annual rate of approximately $1.9 million.
"We are extremely pleased to be able to continue to work in partnership with the Commission for the Transportation Disadvantaged," said Herman Schwarz, LogistiCare's CEO. "The Miami-Dade County renewal, as well as the additional contract win in Volusia County, is a testament to LogistiCare's quality service delivery and commitment to Florida Medicaid members and their transportation needs."
LogistiCare is the nation's leading Medicaid transportation management solution. Proprietary software, innovative management strategies, and a proven record of creating budget stability and quality improvements for our clients distinguish LogistiCare as the leader in its field. From its corporate office just outside Atlanta and its numerous state-based operations nationwide, LogistiCare manages a national network of more than 1,300 transportation companies that provide more than 20 million trips to customers annually. LogistiCare's clients have included state Medicaid agencies, school boards, transit authorities, hospital systems and many of the nation's largest managed care organizations. For more information, visit www.logisticare.com.
The Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct and managed entities to over 74,000 clients through 843 active contracts at September 30, 2009, with an estimated 7.3 million individuals eligible to receive the Company's non-emergency transportation services. Combined, the Company has a nearly $1 billion book of business including managed entities.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
SOURCE The Providence Service Corporation