Maine Lawmakers Challenge ModivCare’s $750 Million Contract Amid Bankruptcy Crisis

State legislators in Maine are intensifying scrutiny over healthcare services provider ModivCare Inc., questioning how a bankrupt company can responsibly manage a substantial $750 million patient transportation agreement. The controversy emerges just weeks after the firm’s Chapter 11 filing in August, creating significant uncertainty around both the contract and the company’s future.

ModivCare’s stock has collapsed to penny stock status, currently trading around $0.44 on the over-the-counter market under the ticker symbol MODVQ following its delisting from Nasdaq. This dramatic decline coincides with CEO Heath Sampson’s appearance before Maine’s health committee on September 9, where he faced tough questioning about the company’s ability to fulfill its contractual obligations while carrying over $1.1 billion in debt.

Despite Sampson’s... Read more...