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Ambulance providers tell Michigan lawmakers unpaid MDOC transport bills threaten local services
Summary
Representatives of Michigan EMS agencies told the House appropriations subcommittee unpaid reimbursements for Department of Corrections patient transports have left some providers accruing large debts, cutting crews and risking reductions in coverage; contractor payment problems and pending litigation with a state vendor were cited.
Angela Madden, executive director of the Michigan Association of Ambulance Services, told the House Appropriations Subcommittee on Corrections and Judiciary that multiple EMS agencies across the state are owed payments for patient transports tied to Michigan Department of Corrections facilities and that unpaid amounts are straining local budgets and response capacity.
Madden, who said the association represents roughly 100 EMS agencies and provided the committee a spreadsheet that previously showed $408,000,000 in unpaid or disputed figures (she said those numbers are about a year old), asked lawmakers to address what she called a serious and growing problem. "These agencies are owed compensation for work they have done for the Department of Corrections over the last 24 months," Madden told the panel.
Multiple providers described operational impacts and specific unpaid balances. Jeff White, chief of Richmond Lenox EMS, said the state's third‑party administrator for MDOC health services, Wellpath, "stopped paying us" about 24 months ago, leaving agencies without promised reimbursements. Renee Gray of Kinross EMS said her agency had incurred $388,000 in debt to buy an ambulance, exhausted its usual three‑month fund balance and had roughly 10 days of operating cash remaining. Russ Adams of Lapeer County EMS said his agency is owed about $138,000 and framed that as the equivalent of the millage assessment for nearly three townships. Ron Slagle, president and CEO of Emergent Health Partners, said Jackson Community Ambulance is owed about $630,000 and that unpaid amounts comprise roughly 5% of his agency's revenue; he said unpaid claims have led to canceled equipment purchases and could force delays in staff-pay increases.
Several witnesses and committee members said the requirement that EMS respond to 9‑1‑1 calls is statutory. Jeff White noted that state licensing and health‑code obligations require EMS agencies to respond to emergency calls within their licensed geographic areas regardless of a patient's ability to pay.
Kyle Kaminski of the Department of Corrections acknowledged the situation is "challenging," explained that the state procures health-care services through a competitively bid process and said the state paid Grand Prairie Wellpath in excess of $350,000,000 while the contractor provided services. Kaminski said the state ended the contract early for performance reasons and has filed litigation against the contractor; he said the pending litigation limits what the department can say about contract details.
Committee members pressed for clarity on totals and timetables. Madden said her spreadsheet and some agency figures are estimates and that not all agencies have shared current accounting; she also said a current contractor (Vital Corps/Bridalc or similar named vendors) has outstanding payments to some agencies. Members signaled bipartisan concern and asked the department to continue working with providers and the committee to resolve payments.
Ending: The subcommittee did not take formal action during the testimony; members requested follow-up information and the department said it would continue engagement while litigation and procurement steps proceed.
