Report: #774351

Complaint Review: LogistiCare Solutions, LLC

  • Submitted: Thu, September 08, 2011
  • Updated: Mon, December 09, 2013
  • Reported By: Michael P — Woodbridge New Jersey United States of America
  • LogistiCare Solutions, LLC
    200 Metroplex Dr
    Edison, New Jersey
    United States of America

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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.

Prior 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.

When 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.

Not 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.

Nobody 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.

WE 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.

Let 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).

The 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.

Survey Statistics:
- The average cost per respondent to prepare the the implementation of the broker system was $31,838.00

- Monthly operating costs have increased more than $4,000.00 for 26% of respondents - just to process Logisticare's paperwork and claims

- 67% of responding companies must submit the same compliance information to Logisticare 3 or more times

- Logisticare acknowledges receipt of information sent to them only 10% of the time

- 95% of companies must re-submit clean claims multiple times at least some of the time

- 85% of companies have had claims denied because of incorrect compliance information in Logisticare's system

- 80% of respondents say that it takes more time to schedule a trip now than before the broker program

Combined 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.

From 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.

91% 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.

PROVIDER 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.

Logisticare'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.

As 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.

100% 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.

When Logisticare assigns a trip to a provider that the provider cannot take (because it is, for example, scheduled after hours, added on at the last minute when a driver or vehicle is no longer available, or is miles out of the provider's service area) there is another unnecessarily labor-intensive process that providers must follow to re-route the trip. Logisticare has assigned the incorrect LOS to almost half of all providers.

Transportation Providers are subject to payment of "liquidated damages" if they reroute more then 15% of assigned trips or if the trip is not re-routed within the time frame specified in the provider agreement. While Logisticare has not totally enforced these terms, providers remain subject to them and subject also to Logisticare systems and practices that put them at risk. Furthermore, due to the reductions in trip numbers assigned to some providers, they are forced to accept Ambulatory MAV trips just to keep their employees working.


Here are some comments from the Transportation Providers that were surveyed. Identifying information was removed at their request to prevent repressions from Logisticare. 

** "When Logisitcare began expediting clients to providers, [we were] informed that as long as clients requested [us] we would retain our clientele base. Logisticare asked us for a list of our clients and we provided the name, patient's information, Medicaid Number, and the physician's information for our entire clientele base. We game them a list of over 70 clients that took over 11 years of our hard work to build.

The reality has been that although clients would request [our company] as their preferred provider, Logisticare would routinely route them to other providers (brand new companies out of county) and inform them that we are busy when in fact our vehicles are parked without work. We have lost so much business that [we] had to let a driver go after 5 years of employment, and removed a vehicle from operation.

Some of the individuals that we are now being assigned are not even in the county that we informed Logisticare that we work out of, but, are forced to transport for lack of business. We are taking just about half the number of patients we used to do before Logisticare. We ask them for 3 times as many trips as they are sending us. Needles to say, the effect of this loss of business has [our company] on the verge of bankruptcy."

** "Yes very much indeed. The last minute introduction of a trip and their inflexibility to admit that they did it unethically. The constant difficulties of communicating via telephone and the un-rapid response by their staff to the providers. Errors by them are not to be contested but what Logisticare considers and error by the provider they are down right nasty and viscous to us especially the small companies like us. I have 3 to 4 times a week nightmares about them."

** "Duplicate providers for same trip, no notification of canceled trips, bad appointment addresses, wrong appointment time."

** "Billing programs slow and unpredictable, continued denials after issue supposedly resolved, lack of integration with in-house billing systems, changes made which are onerous regarding compliance, lack of support for Logisticare's own policies regarding provider's responsibility on transports, poor education provided by Logisticare about services and process."

** "Assist charges are often denied several times even though Logisticare has approved them; patient signatures are often denied because they are slightly above the line and/or their signature is too small; upper management does not return phone calls; trips that are rerouted by [us] are often put back onto our manifest and have to be rerouted  again; Logisticare will call and ask [us] to do a trip; [we] refuse the trip but Logisticare adds the trip onto the manifest anyway."

** "They do not follow the contract; reject trips for no reason; verbally advise us on a procedure then retract any knowledge of it later on; use every excuse not to pay for trips."

** "Patients that prefer other providers continuously appear on our manifest. If we do not show for that patient, they hold it against us. We send a vehicle out to the patient and constantly what the patient get into the vehicle of their preferred provider and we do not receive reimbursement for that trip."

** "It is very hard to deal with Logisticare. Double booking trips; booking the same trip with two or more transportation providers; putting the same trips twice or more in the same day schedule; they underestimated the mileage for our trips not considering any kind of detour or reroute."

** "Our company is not happy at all with Logisticare. For reason that we spent more money and less income. We don't like it but we don't have other options. Logisticare was forced on us, it is not like we were given any option. If we were, we would be taking advantage of that."

** "The 20% decrease in MAV is unacceptable. We now have higher compliance costs and additional staff costs, but our revenue has decreased. It sometimes takes longer to assist an elderly MAV client than to actually transport a wheelchair client."

** "There is no place to formally lodge a complaint against Logisticare. They however send threatening letters to the providers without investigating. They copy the patients on the letters.

When a complaint is rebutted, Logisticare does not follow up with the provider. There is no feedback informing the provider whether or not the complaint stands. 

It takes 3-4 phone calls to get a supervisor on the line. None of the call intake personnel are able to list their chain of command.

The intake personnel will only assist with 3 patients at a time. They state "I can't stay on the line with you all day." This is as backed by the supervisor."

** In America, there is no business model that does not allow for the owner/ proprietor to have total autonomy on building/increasing sales, except in the state of New Jersey as a Logisticare Invalid Coach provider. We have no say on how many clients we want to transport, where we want to transport, our hours of operation, and the option of same day service.

The tenet of providing an effective, efficient, and productive service to invalid individuals in the state of New Jersey must be in line with physician's Hippocratic Oath: to uphold professional standards, and to help those who are seeking help, even if it is same day service; which no longer exists. We have no say in our business anymore and Logisticare will quickly remind the provider that they are no longer your client they are Logisticare's clients. This purposeful disconnect of provider to patient prevents the necessary rapport and quality of care for the patients of New Jersey it is wrong and unproductive.

Finally, we believe that if the State compares the Unisys provider's claim to the Logisticare's system and a proper audit and paper trail was initiated, we are certain that grounds for Logisticare's system would be, at best, dismissed."


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This report was posted on Ripoff Report on 09/08/2011 10:37 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

Contact me it's federal fraud

AUTHOR: Contactmelogisticarefedfraud - (USA)

 Federal fraud of Fed laws Fed contracts with Oig..I have mass recorded of fraud..RECORD all your dealings...the HMOs are on Fed contracts and also felony fraud..

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#2 General Comment

Problem In Missouri As Well

AUTHOR: Angy Transportation Provider - (United States of America)

I do know Logisticare is up for the contract here in Missouri as the first of 2013. They have treated our small family owned business the same way. We were a full time taxi service that had a great customer base and was supporting its self. We were asked to help with some of the trips they had because they had few providers in this area. We complied and found our self being so busy that we could not do standard fairs. We did not complain due to the amount of business we were given. We explained if we were to make our self available as often as they needed that they would be our only means of income so we could not afford for them to pull out at a later time. They said the work load for this area was to great for them to leave us high and dry. We added another car. Things were great then. 6 months into it we see a huge decrease in trips. I ask the operations manager what the problem was and he said maybe if you drop your rates it will be better. We did a considerable amount. We lost more trips. I called again in August the operation manager stated  companies that are contractual get first choice. I jump thru the hoops and spend a huge amount of money meeting regulations. Even more of a decrease. Called once again and he stated I was the most expensive provider in the area. We lowered our rate as low as we can. And now we have maybe 3 trips a week. I called and asked why people who don't carry the insurance coverage we are required to get the long trips. He states Volunteer drivers get the long hauls before contracted providers do because they are more cost effective. I suppose if I was not required to quire the huge insurance policies they just had me to get I could probably afford to run that cheap. But that also contradicts his earlier statement he made about being contractual. We have maybe 10 complaints in the past year. Complaints that we brought against our company due to poor scheduling, wrong info on manifest or no shows that don't want the no show on their record. I know a couple of the people whom work in the office and have heard the statement from the transportation manager to not call us. He has his favorites and we are not one. I have also had them to say a trip was cancelled off our manifest do to client cancelling and truly had not but gave to a different provider. I have clients that have been told we are to expensive or we are not contractual or available. When brought to upper managments attention they say they listened to call nothing like that was said. Pretty much calling the member a liar. So as of today we are to the point of canceling all policies and applying for assistance and adding to the cost of the state for medical rides ourselves. That is a shame that they are forcing hard working loyal providers to loosing everything they have worked so hard for. I pray that someone one out there some where can help us small business owners that now don't even have the money to retain an attorney for help. Oh last but not least I should have mentioned in the beginning. We had an address change that was reported in enough time for it to be update in their system before a check was mailed. They had not changed the address it was sent to a different party that was not so honest to send it back. Needless to say. Logisticare office in Missouri refused  to help. Finally at corperate I found someone that wrote a letter to the bank the check was deposited in and clarified to the bank it was the wrong company that deposited it. Why could they not have done that a month sooner. We struggled for that month and the month after till a new check was finally sent.
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#3 General Comment

Help with Logisticare or Logisti-don't-care as most users refer to them.

AUTHOR: limabean - (United States of America)

Some limited help can be found through The New Jersey Lieutenant Governors Office.  Contact the following person and best to use e-mail or snail mail with a copy to Logisticare Headquarters in Atlanta Ga. 
Mr. Mathew McDermott
PO Box 001
Trenton, NJ 08625
125 West State Street
Trenton, NJ 08625

Telephone 609-292-1166

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#4 General Comment


AUTHOR: br - (United States of America)

As owner of a company who is a provider for medical transportation via Logisticare--I agree with your allegations/comments!  I would be willing to band together to go to our state officials.
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#5 UPDATE EX-employee responds

Continue to Pursue Your Efforts - There's Truth

AUTHOR: Your Advocate - (United States of America)

Having insight on the operations, I would encourage you to partner with one another in all regions served and pursue your efforts for equal treatment. You should start with the corporate office in Atlanta, Ga and even take it to the parent company Providence Corp. There are some shady business practices, favoritism towards family and friends, discrimination and the sort. How you treat your employees is usually a reflection of how you will treat your customers. There's no value in the people who do the real work nor in the population served, its only in getting paid.
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#6 Consumer Comment

We Should Meet!

AUTHOR: Charna - (United States of America)

I would love to compare notes with you.  Any time, any place!!!  This company must be forced to leave the state of New Jersey! 
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