EMS providers have no chance of repayment through state litigation until bankruptcy proceedings for Wellpath, the Michigan Department of Corrections former healthcare provider are completed, according to a new Auditor General’s report.
In bankruptcy proceedings, unsecured creditors typically receive pennies on the dollar of what they are owed. This makes it unlikely that EMS providers across Michigan would receive anything following Wellpath’s bankruptcy.
The lack of payment continues to strain emergency response agencies, putting emergency care in jeopardy while leaving Michiganders vulnerable when they need help most. As EMS agencies are required under Michigan law to respond to all 9-1-1 requests, the State of Michigan must reimburse EMS agencies for services rendered to MDOC.
“It’s long past time to prioritize the health and safety of our communities and right this wrong that is clearly not going to be fixed through litigation anytime soon,” said Russ Adams, director of Lapeer County EMS. “We urge legislators to fix this crisis before communities are left without emergency care.”
“We take our duty as EMS providers very seriously and are simply asking to be paid for our lifesaving work,” said Jeff White, chief of Richmond Lenox EMS, serving portions of Macomb and St. Clair Counties. “We urge swift bipartisan action to preserve emergency care across our state.”
The lack of payment for emergency services has caused EMS providers, who serve nearly 60% of the state’s population to deal with serious financial woes. Most dire is the situation in the Eastern Upper Peninsula, where delinquent payments of nearly $500,000 owed to Kinross EMS put the agency less than a month from closing its doors.
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