TROUBLE IN BROKER PARADISE

Has Modivcare Crashed?

What up Doe Family,

So it seems like their is some smoke settling over at one of the largest Nemt Brokers in the industry and they have halted the Broker Partnerships between new Transportation Providers so whats how dies this impact on you may ask lets take a look on the inside

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Is ModivCare Leaving Transportation Providers Behind? A Closer Look at the Stock Plunge and Industry Fallout

Over the past several years, ModivCare Inc. (NASDAQ: MODV), a leading non-emergency medical transportation (NEMT) broker, has seen a dramatic plunge in its stock performance—losing nearly 90% of its value in just three years (Yahoo Finance). While market downturns can affect any company, transportation providers across the country are beginning to question if ModivCare’s operational choices, particularly its refusal to onboard new providers, are accelerating its decline.

ModivCare plays a central role in the NEMT ecosystem. By contracting with state Medicaid programs and health plans, they coordinate millions of rides annually for patients needing transportation to and from healthcare appointments. Yet, several transportation providers have reported that their attempts to become credentialed with ModivCare have been ignored or rejected, with no clear communication as to why. This has raised red flags not only within the transportation community, but also among investors tracking the company’s growth and scalability.

In recent interviews with NEMT business owners in states like Michigan, Georgia, and North Carolina, the frustration is growing. “We’ve met all the requirements—commercial insurance, vehicle inspections, background checks—and still haven’t been approved,” said Jason Taylor, an operator based in Detroit. “It feels like they’re gatekeeping access while patients continue to miss their appointments.”

If ModivCare isn’t bringing new providers into the fold, who is handling the rising demand? The short answer: likely fewer providers stretched too thin, leading to missed rides, late arrivals, and negative patient outcomes. According to reports filed with various state Medicaid offices, ModivCare has received an increasing number of complaints tied to ride delays and service quality—issues that could have been mitigated with more contracted providers.

At the same time, the company’s financial woes continue. With a market cap of just $332 million, ModivCare is a shadow of its former self. Its earnings per share (EPS) stands at -$14.43, and financial analysts have downgraded the stock to “Sell” due to weak management scores and minimal financial strength (Yahoo Finance - MODV). Critics argue that the refusal to adapt and form new partnerships is not just poor business—it’s a missed opportunity to stabilize and scale.

From the transportation providers’ perspective, the decision to limit onboarding undermines the very fabric of the NEMT industry. Many of these small business owners, often operating in underserved communities, are passionate about providing access to care for elderly, disabled, and low-income patients. But without a fair opportunity to partner with major brokers like ModivCare, their growth—and the health outcomes of the communities they serve—are stifled.

Even more troubling is the perception that ModivCare may be favoring large fleets or national contracts, ignoring smaller, community-based providers who have deep roots in local neighborhoods. “They say they want to improve access to care, but their actions tell a different story,” said Carla Ruiz, a provider in Texas. “We’re here, licensed and ready, but they won’t let us in.”

Some speculate that ModivCare is trying to control costs by consolidating its provider network. While this might appease shareholders in the short term, it’s counterproductive in a service-based industry where availability, reliability, and patient satisfaction matter more than margins alone. And in this case, it’s clear the financials aren’t being helped by the strategy.

Transportation providers are increasingly turning to other options—brokers like MTM and Veyo, or even Medicaid-managed care organizations offering direct contracting—to sustain and grow their businesses. “We’ve stopped waiting for ModivCare,” said Taylor. “There are other brokers who see our value and treat us as partners, not problems.”

With ModivCare’s stock continuing to plummet and negative sentiment building among grassroots transportation companies, it’s time for a serious industry reckoning. Stakeholders—including state Medicaid agencies, managed care plans, and advocacy groups—should question whether ModivCare’s current structure is designed to meet the needs of today’s healthcare landscape.

As the dust settles, one truth is becoming more evident: strong partnerships with transportation providers are not just good business—they’re essential. Companies that embrace collaboration, transparency, and expansion will win in the long run, while those that gatekeep and isolate may continue to fall behind.

To transportation providers navigating these uncertain waters: stay informed, stay credentialed, and continue building your value. The landscape is shifting, and those ready to serve will find opportunities—if not with ModivCare, then with someone else who values access, equity, and real partnership.

Sources:

Yahoo Finance - ModivCare Stock Analysis

Provider Interviews (April 2025)

Yahoo Finance - MODV Company Financials

State Medicaid Public Complaint Logs (various)