State investigates providers' antitrust violations

Atlanta-based Logisticare last month was awarded a $25.6 million state contract to provide transportation services for Medicaid recipients to doctors’ offices and pharmacies in Missouri – significantly cheaper than the $40.4 million per year contract with St. Louis-based Medical Transportation Management, which held the contract since 1997.

Since then, Logisticare’s efforts to subcontract transportation services throughout the state have brought reports of some transportation providers refusing to lawfully negotiate with Logisiticare in an attempt to drive up prices.

The Missouri Commissioner of Administration Mike Keathley Nov. 2 submitted a request to Attorney General Jay Nixon to investigate the antitrust reports.

Jim Gardner, spokesperson for Nixon’s office, said Nixon has begun further investigation into the violations and is working to compile a list of all subcontractors that were contacted in the bidding process.

“The bottom line is that it’s the responsibility of the Office of Administration to make sure the provisions of the contract are properly admitted and adhered to,” Gardner said.