A company that provides rides for MaineCare patients in the state’s most populated areas recently emerged from bankruptcy, while a dispute over whether it should take over all non-emergency transportation services in Maine remains in court.

Modivcare covers much of the non-emergency transportation for Medicaid patients in the state. Some lawmakers have expressed concerns about handing over the entire MaineCare transportation program to the out-of-state contractor.

Molly Slotznick, chief operating officer for the Office of MaineCare Services, said during a legislative committee hearing Wednesday that services by Modivcare were not disrupted during the bankruptcy and that the company continues to exceed performance standards it’s required to meet in its state contract.

That includes missed rides and complaints, which occurred in less than 1% of total trips for each category,  Slotznick said.

Lawmakers on the committee said they have heard more people complain about the service than they believe the low numbers in official reports indicate.

“It doesn’t square with what we are hearing,” said state Rep. Michele Meyer, D-Eliot, who chairs the committee. “We are looking to make sure the delivery of this service is as good as it can be.”

Modivcare handles non-emergency transportation — typically rides to medical appointments for Medicaid patients who need them — for much of the state, including in Portland and Lewiston. Local nonprofits Penquis Community Action Agency and Waldo Community Action Partners cover areas that include Kennebec, Penobscot and Piscataquis counties.

After winning a competitive bid, Modivcare was slated to take over Medicaid transportation for the entire state in 2024 under a 10-year, $750 million contract, but Penquis filed a lawsuit against the Maine Department of Health and Human Services, arguing the bidding process was unfair to the local nonprofits. Waldo is listed as an interested party in the lawsuit.

DHHS prevailed in the initial court case and appeal and the case is now pending before the Maine Supreme Judicial Court. The current service areas for Modivcare, Penquis and Waldo remain in place while the court case is pending.

On Wednesday, the committee discussed a bill, LD 1835, that in part would create an independent ombudsman position to oversee non-emergency transportation, but decided against it saying it would be too complex to set up during the 2026 “short session” of the Legislature.

Colorado-based Modivcare emerged from bankruptcy Dec. 29, according to a court filing in the U.S. Bankruptcy Court in Houston, Texas. The company, which was previously called LogistiCare, operates in 35 states.

Dan Silvers, Modivcare’s board chairman, said in an interview with the Press Herald on Tuesday that the bankruptcy reorganization left the company on “solid financial footing.”

“We had no interruption in services, and we improved our performances in 2025,” Silvers said.  “We are ready to provide this same great service to the entire state.”