Case Details

Year Initiated/Committed

2005

Year Resolved

2005

Settlement Amount

$550,000

Court

n/a

Docket Number

n/a

Lead State

MO

Participating States

MO

Defendant(s)

Medical Transportation Management, Inc. (MTM), Medical Transportation Holdings, Inc., LogistiCare Solutions, Inc

Case Description

In the summer of 2004 a new market entrant was awarded the state contract for the provision of brokering of non-emergency transportation services under state-wide contract (a service required under federal Medicaid regulations). The bid was set aside following a protest by the incumbent broker. Thereafter, the incumbent broker allegedly entered into exclusive dealing agreements with providers in transportation network whereby those providers could not offer their services to a competing broker. These agreements allegedly had the effect of preventing market entry by other brokers to compete for state contract. The state re-solicited bids. When the next bidding process ended, only a single bid proposal was received and it was discovered that that new entrant and the incumbent broker had entered into acquisition agreement and submitted joint bid for the state contract which was significantly higher than either company’s bid had been the previous summer. Following an investigation both brokers entered into letter agreements resolving antitrust concerns relating to the bidding process.