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Providence Service Corporation Signs Definitive Agreement to Acquire LogistiCare, the Nation's Leading Case Management Provider Coordinating Non-Emergency Transportation Services for the Medicaid Population
Date:11/6/2007

th the potential to serve over 8 million eligible members. LogistiCare's top six executives have all committed to Providence employment and lock up agreements.

"Transportation has always been a critical issue for our clients," said Fletcher McCusker, Chairman and CEO of Providence. "In order for our clients to manage their way out of welfare they need access to various resources within the community. LogistiCare already serves the medical transportation needs of many of our clients as we share much of the same geographic coverage area. Both companies are non-asset intensive solution providers with unique understandings of the challenges faced by the Medicaid population and we see significant synergies between the two companies to provide a greater continuum of care. We also see an opportunity to expand Providence's services through the use of LogistiCare's call centers and to share IT and accounting systems."

John Shermyen, CEO of LogistiCare commented, "We are the leader in providing the non-emergency transportation benefit to Medicaid clients, with opportunities to expand into Medicare. As a service business, our investments are in technology, training and employees, not transportation assets. Currently we arrange for over one million trips per month to medically necessary services and our credentialed network of transportation providers contract with us to provide a full range of transportation alternatives. Our business model provides budget predictability to our payers and enhanced quality and access for our clients."

Mr. McCusker added, "We view the combined company as a powerful and effective solution provider to Medicaid beneficiaries. Mobility management and in home intervention are two key drivers to keeping clients active, to improve clinical outcomes and contain costs. This is an extremely exciting opportunity for both companies to expand our respective services to our core populations."

Under the Medicaid NET benefit, recipients
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SOURCE Providence Service Corporation
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