LogistiCare Solutions, LLC Woodbridge New Jersey Review

In July 2009 Logisticare Solutions LLC began managing non-emergency medical transport services for Medicaid patients in New Jersey. In other words Logisticare LLC provides a broker program to manage the medical transportation services. Before LogistiCare stepped into its new role, eligible people who needed help getting to medical appointments could directly contact one of scores of independent, certified local companies that contracted with the state Department of Human Services to provide these services. Now, clients call LogistiCare’s central office in Edison, where dispatchers assign rides statewide. nPrior to the broker program, the clients/patients determined who and what company would provide the transportation to and from their doctors. Depending on the quality of the service provided, clients would choose which transportation provider company they want to be serviced by. After the introduction of the broker program, Logisticare gets the final word and decision on which transportation providers get the jobs. Each client is very important to every single transportation company because each client represents a job. nWhen the idea of a broker program was first introduced to the transportation provider companies they were told that they would retain the SAME VOLUME OF JOBS THAT THEY HAVE ALWAYS HAD. THAT WAS A LIE!! Not one owner of any transportation company in the state would sign the contract if they knew that their work volume would substantially decrease. Why would people who spent years building a successful business leave their company’s well being in the hands of an outside company they never heard of ? Answer, because they were flat out LIED TO. nNot only has Logisticare decreased the amount of jobs Transportation Providers receive, but they also reduced the amount they get paid per each trip. While at the same time astronomically increasing insurance costs and also the costs to process the billing of these trips. They also introduced many costly and useless regulations. That is why many Transportation Companies in the State of New Jersey went out of business. nNobody even knows how Logisticare LLC got the NJ State contract to manage the medical transportation services. Usually there is a bidding war for these contracts. No bidding war took place, Logisticare just magically got the contract overnight? Now that is interesting. nWE DO KNOW THAT HIRING LOGISTICARE IS COSTING THE STATE $300,000,000.00+ according to their contract with the state. As soon as Logisticare got the contract they made an ultimatum to all of the transportation providers. The ultimatum was to sign and agree to the terms and conditions of their contract OR ELSE THEY (the transportation providers) WILL NO LONGER BE ABLE TO DO BUSINESS IN THE STATE. nLet us take a look at some of the statistics which were reported by a survey conducted in 2010 by THE MEDICAL TRANSPORTATION ASSOCIATION OF NEW JERSEY. Every transportation provider company is a member of The Medical Transportation Association of New Jersey (MTANJ). nThe survey question topics were drawn from over a year of MTANJ member experience with the broker system (Logisticare System). Survey was conducted with responses from 27 transportation providers. The most defining response indicative of the difficulties associated with the broker program is that – IF THEY HAD A CHOICE – 89% OF COMPANIES WOULD NOT PROVIDE TRANSPORTATION TO MEDICAID ENROLLEES UNDER THE BROKER SYSTEM. nSurvey Statistics:n- The average cost per respondent to prepare the the implementation of the broker system was $31,838.00 n- Monthly operating costs have increased more than $4,000.00 for 26% of respondents – just to process Logisticare’s paperwork and claims n- 67% of responding companies must submit the same compliance information to Logisticare 3 or more times n- Logisticare acknowledges receipt of information sent to them only 10% of the time n- 95% of companies must re-submit clean claims multiple times at least some of the time n- 85% of companies have had claims denied because of incorrect compliance information in Logisticare’s system n- 80% of respondents say that it takes more time to schedule a trip now than before the broker program nCombined with the inadequate reimbursement for ambulance and MAV trips provided to Medicaid recipients and the problems associated with the current Logisticare Broker System, any additional costs are excessive. The cost to process paperwork and claims identified in the survey does not include less easily quantified costs incurred by management, supervisors, intake and dispatch personnel dealing with the broker system process. nFrom the beginning of the implantation period for the broker system, the MTANJ supported the compliance requirements as a whole, particularly those required for employees. That is not the issue. What has been brought up numerous time since then is Logisticare’s record-keeping of vehicle and employee compliance information. n91% of transportation providers never received acknowledgment that their records have been received or find out when they take more of their time to confirm with Logisticare. Logisticare’s payment of claims is tied to their having the correct compliance records. Logisticare’s provider agreement states that “No payments will be made for services performed by non-compliant drivers or vehicles that not registered with LGTC to provide services”” Logisticare relies on its compliance system to check that provider information is current before paying claims. 85% of providers responded that clean claims are being denied due to incorrect compliance information in Logisticare’s system. The RFP for the broker services permits denial of clean claims but does not specify whether denial due to broker responsibility is acceptable. nPROVIDER EXPERIENCES LEAD TO ONE CONCLUSION: LOGISTICARE’S TECHNOLOGY AND SYSTEMS DO NOT SEEM TO BE SUFFICIENTLY ADVANCED TO HANDLE THE DOCUMENTATION REQUIREMENTS. As a result

New Jersey providers spend hours duplicating their efforts in order to be compliant to ensure they will be paid. nLogisticare’s billing system requires double entry and at times manual re-entry. In comparison to the Medicare electronic billing system and those of virtually every other player

LOGISTICARE’S BILLING SYSTEM IS LABOR INTENSIVE AND OUT-OF-DATE. nAs with compliance records

claims must be faxed to Logisticare multiple times. The connection between incorrect compliance record-keeping by Logisticare affects claims payments due to related denials. The difficulties of the system add to administrative costs. n100% of the companies surveyed have experienced client complaints about not getting them as their preferred provider even when the provider is available. Trip rerouting appears arbitrary. Transportation Providers have seen their volume decrease sometimes to alarming levels even as they see companies from out of the service area routed trips for which they stand ready and waiting. Some providers are so busy they are buying additional vehicles while others in the same area re watching their years of building a business waste away through no fault of their own. nWhen Logisticare assigns a trip to a provider that the provider cannot take (because it is

for example

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