ATLANTA, March 18 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 the award from the Mississippi Division of Medicaid (DOM) to continue to operate a non-emergency transportation (NET) brokerage program for the fee-for-service Medicaid population statewide.
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The approximately $95 million contract, valued at over $30 million annually, is for a three year period ending fiscal year June 30, 2013 and may be renewed at the option of the Mississippi DOM for an additional one year period. This re-award is subject to finalized contracts and various processing procedures.
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The state-wide contract covers an estimated 530,000 Medicaid lives.
"We are extremely pleased to be able to continue to serve the people of Mississippi," said Herman Schwarz, LogistiCare's CEO. "Our dedicated staff and transportation provider network have become a critical part of the overall delivery of healthcare in the state. Our contract renewal is a testament to the strong working relationship we have developed with the Mississippi DOM and maximizes coordination with the Mississippi End Stage Renal Program contract re-awarded to LogistiCare in 2009."
LogistiCare has operated in Mississippi since 2007, with transportation services coordinated from offices in Jackson, Mississippi. LogistiCare's Mississippi service network is comprised of approximately two dozen transportation non-profit, commercial and transit agency providers, who deliver more than 725,000 non-emergency medical trips annually.
About LogistiCare
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 1,100 transportation companies that provide more than 19 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.
About Providence
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 entities to approximately 62,200 clients through 734 active contracts at December 31, 2009, with an estimated 7.7 million individuals eligible to receive the Company's non-emergency transportation services. Combined, the Company has an approximately $1 billion book of business including managed entities.
Forward-Looking Statements
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
