South Carolina Opens a Third NEMT Broker Bid After Throwing Out the MTM Award

South Carolina is trying for the third time to pick a Medicaid NEMT broker. On August 5, 2026, the state’s Chief Procurement Officer denied a protest by Modivcare and formally canceled the 2025 bid that MTM Health had won and then lost. A new request for proposals, Solicitation 5400029919, went out on June 26, 2026. After a pause for the protest, the state reset its dates on September 11, 2026: proposals are due December 3, 2026, and the award is set to post March 1, 2027. Until a new contract starts, Modivcare keeps arranging Healthy Connections Medicaid rides in all three regions.

What happened, in order

Date	What happened
January 24, 2025	The state issues its first broker bid, Solicitation 5400027781
May 2, 2025	The state cancels it over a problem with its scoring rules and issues a second bid, 5400028336
May 14, 2025	Seven companies send proposals, including MTM Health and Modivcare
July 3, 2025	The state posts its intent to award the contract to MTM
October 2, 2025	The Chief Procurement Officer grants part of Modivcare’s protest and voids the MTM award
January 16, 2026	The Procurement Review Panel affirms that decision and dismisses MTM’s appeal
February 18, 2026	The Department of Health and Human Services (SCDHHS) tells the procurement office it will rebid because it is changing the scope
June 26, 2026	The third bid, Solicitation 5400029919, is posted
July 11, 2026	Modivcare protests the new bid, arguing it should get the contract instead
July 14, 2026	The state suspends the bid while the protest is reviewed
August 5, 2026	The Chief Procurement Officer denies the protest and cancels the second bid
September 11, 2026	Amendment 1 sets new dates for the third bid

Why the MTM award was thrown out

The 2025 contract barred the broker from giving rides itself or sending trips to a transportation company it has a financial relationship with. MTM’s proposal leaned on VeyoRide, the independent driver program of its affiliate Veyo, in the main body of the proposal and not just as an option. On October 2, 2025, the Chief Procurement Officer ruled that this made MTM’s proposal nonresponsive. He also found the state treated the two finalists unequally at the demonstrations. The procurement officer let MTM bring up to six presenters but did not tell Modivcare, which planned for the three the invitation allowed and got only a last-minute offer to add people. The Procurement Review Panel affirmed on the nonresponsive finding alone.

Modivcare then argued that, with MTM out, it was the top remaining bidder and should get the award. The August 5, 2026 decision rejected that. The state may cancel a bid when it is in its best interest, and the Chief Procurement Officer pointed to changes in the new request and to Modivcare’s own Chapter 11 case since the 2025 proposals. He wrote that the state has “a real interest in testing the market as it exists today.” For what the bankruptcy means for providers, see Modivcare’s exit from Chapter 11.

The decision also notes how long the state has gone without a competed contract. The last competitively awarded contract, to LogistiCare, had a maximum term of May 26, 2011 through May 25, 2016. Since that contract ended, LogistiCare, now Modivcare, has kept the work under a contract awarded without competition.

The new bid dates

Step	Date under Amendment 1 (September 11, 2026)
Pre-proposal conference, online	September 30, 2026, 10:30 a.m. Eastern. Ask the procurement officer for the link by September 29, 2026, 10 a.m.
Written questions due	October 2, 2026, 11 a.m.
Proposals due	December 3, 2026, 11 a.m.
Finalist demonstrations, in person in Columbia	Tentatively the week of February 12, 2027, for up to three bidders
Award posted	March 1, 2027
Estimated contract period	March 11, 2027 to March 10, 2032: three years plus two optional one-year renewals

The state calls the contract dates estimates. The procurement officer is Nakendra Perry, 803-896-0022, nperry@mmo.sc.gov.

What changes for transportation providers

South Carolina wants a single broker paid a fixed monthly amount per member, which the state calls a risk-based capitated model. Today the broker administers the benefit under what the state describes as a fee-for-service model. In the August 5 decision, the Chief Procurement Officer listed contract changes from the 2025 version, including stretcher van service, hands-free devices, waiting times, and exceptions to real-time tracking.

Here is what the draft broker contract posted June 26, 2026 would require the broker to hold its transportation providers to. The final contract can still change.

Topic	Draft contract terms (June 26, 2026)
Getting paid	Payment at least weekly, and full payment of undisputed invoices within 30 calendar days of receipt
New providers	Pre-payment review that looks first at claims from providers enrolled less than six months and providers with a history of suspicious or wrong billing
Joining the network	Preference for atypical providers, such as adult day care centers, when that fits the member. A provider the broker turns down gets written notice of the reason.
Stretcher van	Allowed with prior authorization, staffed by a driver and an attendant, billed per mile with T2049
Pickup wait	You wait up to 10 minutes after the scheduled pickup time
On time	90 percent of non-urgent trips to appointments picked up within 15 minutes of the scheduled time, and 90 percent of non-urgent return trips within 30 minutes, or within one hour of the call for open returns
Tracking	GPS in every vehicle that records driver activity. The broker must see each provider’s real-time location, except during signal or technical problems.
Drivers	At least 18 with a valid license, no suspension for a moving violation in five years, no more than two chargeable accidents or moving violations in three years, background checks, yearly driving record checks, and 5-panel drug and alcohol screens at random and after any accident
Phones	No phone use while driving a member unless stopped or hands-free. Earpieces only for trip-related calls.
Vehicles	The word “Medicaid” may not appear on the vehicle or in the business name

For the stretcher van rules and code, see T2049.

What providers should do now

1. Keep driving for Modivcare. Nothing changes for rides before a new contract starts. Modivcare’s member reservation lines are 1-866-910-7688 for Region 1 (12 counties, including Greenville and Spartanburg), 1-866-445-6860 for Region 2 (18 counties, including Richland and Lexington), and 1-866-445-9954 for Region 3 (16 counties, including Charleston and Horry). Its facility assistance line is 866-420-6231.
2. Keep your state requirements current. Since December 15, 2021, SCDHHS has required that no provider or driver is excluded from federal health care programs or on the OIG exclusion list, every driver has a valid license, and each provider has a process to address state drug law violations and to disclose each driver’s driving history to the state Medicaid program. Our credentialing guide shows how to keep that file.
3. Price out the draft rules. The draft contract requires GPS in every van, random drug and alcohol screens, and yearly driving record checks, so get quotes now.
4. Expect calls from bidders. In 2025, MTM’s proposal said it had letters of intent from 37 more South Carolina providers. Before you sign a letter of intent, read it and ask what rates and payment terms come with it.
5. Watch the award. The award is set to post at procurement.sc.gov on March 1, 2027. A bidder can protest an award to the Chief Procurement Officer, and an appeal of that decision goes to the South Carolina Procurement Review Panel, which lists its pending cases on its public notices page.
6. Check your payer mix. If most of your trips come through one broker, a switch can hit hard. See how much revenue should come from one broker.

If the broker changes in 2027, our broker transition checklist covers final claims, standing orders, and credentialing with the new company. Our Modivcare and MTM Health guides cover each company’s provider process, and how state broker contracts are awarded explains the bid process.