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Contract Disputes May Have Led to Failures in Medicaid Transportation System

November 10, 2005
By: Tim Walker
State Capital Bureau

Contract disputes involving the company signed to provide transportation for Medicaid recipients led to failures in the system.

Tim Walker has more from Jefferson City.

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The state of Missouri contracted LogistiCare to transport Medicaid recipients to non-emergancy medical appointments.

Ed Domansky, spokesman for Logisticare, says subcontractors are to blame for missed rides.

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"A lot of it though, particularly that first day had to do with the fact that the two vendors that backed out on us on the last minute, under the previous broker, had roughly 30 percent of the business."

But Linda Yaeger, Executive Director of Oats, one of the subcontractors, says LogistiCare knew the company was not ready to begin service.

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"We were negotiating the contract, negotiating the terms of the contract as well as the pay rate for the contract."

Oats signed a contract with LogistiCare Thursday afternoon and is currently picking up patients in some areas.

From the state Capital, I'm Tim Walker.