DHHS must protect transportation options for Maine’s seniors and disabled

By Joe Baldacci

Of vital importance to protecting the health, dignity, and mobility of Maine people is the transportation infrastructure that makes this possible. That is why I and many of my legislative colleagues are very concerned about the state’s current $750 million contract with an out-of- state entity called Modivcare. That company’s recent bankruptcy and complaints about failures to meet performance standards raise serious questions about the future of this lifeline.

That is why I think the Department of Health and Human Services needs to reissue the non-emergency transportation contract RFP now.

Modivcare has filed for Chapter 11 bankruptcy with more than a billion dollars in debt. If the reorganization falters, it could convert to Chapter 7, a liquidation that would directly threaten service continuity. This $750 million contract is significant, and it demands rigorous oversight, strong results, and financially stable providers.

The restructuring may satisfy investors, but I believe it does not address the needs of Maine people. Reliable transportation means getting people to dialysis, cancer treatment, counseling, and other critical appointments. If cost-cutting accelerates, these risks could grow while DHHS remains without reliable performance indicators to track real-world impact.

Even before bankruptcy, Maine people were experiencing ongoing problems. Complaint rates under Modivcare are higher than local nonprofits, and the cost per ride is higher despite lower quality. Moving forward without change will only deepen these concerns and put greater strain on riders and providers.

Local capacity is already under pressure. In two of Modivcare’s four regional brokerages, primary transportation agencies have ceased operations, raising urgent questions about service in all eight counties. Downeast Community Partners has closed its program. It is likely the combined loss for Penquis and KVCAP is estimated at $6.76 million in transportation assets, with nearly 200 jobs and 200 volunteer drivers at risk, Penquis CEO Kara Hay said in an impact statement. If transportation services decrease further, Maine loses drivers and trusted local partners who connect people to care, reduce isolation, and link to resources that keep them healthy and independent.

Modivcare’s Chapter 11 bankruptcy and restructuring represent significant changes to its financial condition and corporate control. Under state procurement law, those changes provide legal grounds for DHHS to reassess the non-emergency transportation contract. 

This is a $750 million contract and it demands rigorous oversight, strong results, and financially stable providers.

By reissuing the non-emergency transportation contract RFP, I believe Maine can ensure reliable rides, support strong local providers, and protect the transportation network that so many people count on. Protecting health outcomes, safeguarding transportation infrastructure, and ensuring responsible investment of public dollars demands urgent, decisive action.

Baldacci is a state senator representing Bangor and Hermon. He is the member of the Health Coverage, Insurance and Financial Services Committee and chair of State and Local Government and Inland Fisheries and Wildlife committees. He served 12 years on the Bangor City Council and twice as council chair.