Kinross EMS says delayed payments from former MDOC healthcare provider could put services at risk

CHIPPEWA COUNTY, Mich. (WLUC) – Delayed payments to EMS agencies by Wellpath, the Michigan Department of Corrections’ (MDOC) former healthcare provider, could leave part of the Upper Peninsula without immediate attention, according to the Michigan Department of Corrections. Ambulance Services (MAAS).

Emergency providers operating near Michigan prisons provided emergency services to inmates in partnership with Wellpath. According to MAAS, these EMS providers did not receive payment for patients’ treatment even though Wellpath’s contract with the State of Michigan expired in April 2024.

Under Michigan law, EMS agencies are required to respond to 9-1-1 requests, including calls to Michigan prisons. Kinross EMS in Chippewa County has three state prisons within its service area.

Kinross EMS, which serves 640 square miles in eight counties, could soon be without emergency services and 39 jobs could be affected if it doesn’t receive payment, MAAS said. MAAS said Wellpath owes Kinross EMS nearly $500,000, accounting for 11% of the agency’s budget. This means Kinross EMS has been unable to make payroll for less than a month due to lack of compensation, the organization said.

“The lack of reimbursement for our emergency care in Michigan prisons has become a serious crisis that will soon impact our ability to serve our communities,” said Kinross EMS Director Renee Gray. “EMS is expected to respond 24/7, 365, and not being compensated for the work we do, especially when helping the State of Michigan, is unacceptable.”

According to MAAS, he alerted state leaders to this issue over the summer and called for reimbursement for emergency services to be covered by the State of Michigan. MAAS said: “(T)o date, no action has been taken by the state to rectify this situation, and the nearly $6 million deficit is hurting emergency services agencies, which will quickly impact lifesaving operations without reimbursement.”

However, the state says it is taking precautions.

TV6 contacted MDOC and said: “The State entered into a contract with Grand Prairie Healthcare Service, PC and paid in full for services, including services performed by Grand Prairie, Wellpath and its subcontractors, who fulfilled the State’s contractual obligations. As of April 22, 2024, the organizations owed their subcontractors an estimated $35 million for services provided during the contract period. Grand Prairie and Wellpath failed to provide updated outstanding payment data despite multiple requests from the state. and is currently seeking compensation.”

TV6 is trying to find out where the claim currently stands in the court process.

Besides Kinross EMS, other affected agencies have been forced to freeze the hiring of new employees, postpone purchases of replacement medical equipment, reduce employee cost-of-living increases and halt the purchase of new ambulances, MAAS said.

MAAS is calling for the funds to be repaid through a budget supplement during the Lame Duck session before the session ends.

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