San DiegoVeyo-based company, which developed an Uber-style model to get Medicaid and Medicare members to doctor’s appointments, has signed a deal to sell to its rival Medical transport management of Saint Louis for an undisclosed price.
The acquisition, which is not yet finalized, should bring Medical transport management annual turnover of approximately $1 billion, the company said. MTM has 2,200 employees nationwide.
Veyo said its annual revenue is approximately $300 million. It employs 570 workers in 10 locations across the country, including call centers in Arizona and elsewhere.
The combined companies plan to provide 20 million trips a year to people in 31 states and washington d.c.
Co-founded in 2015 by the Managing Director Josh Komenda as a spin-out from ArizonaBased at Total Transit, Veyo is a transportation broker that aimed to disrupt non-emergency Medicaid/Medicare transportation business by bringing on board independent contractors who use their own vehicles to drive people to doctor’s appointments.
About 3.6 million people forego medical care each year due to transportation problems, according to the American Hospital Association. For older Americans, transportation is the third most commonly cited reason for not seeking health care.
Veyo trained independent drivers in CPR, HIPPA rules, Americans with Disabilities Act procedures and other skills, and inspected vehicles. Non-emergency transportation is covered for certain Medicare and Medicaid members, who California is called Medical. Government-funded insurance programs pay for trips for people who cannot use public or private transportation and need help getting around.
Komenda will stay with Medical transport management in an indefinite leadership role, the company said.
“While technology and innovation are hugely important, so is the human touch and that is where our vision for the future lies,” Komenda said in a statement. “With this merger of our companies, we bring together the best of both worlds: MTM’s focus on customer service and Veyo’s technological prowess and independent driver supplier model.”
Medical Transportation, also a broker, has been in business since 1995. A private, women-owned company, it handled more than 13 million trips a year to Medicaid and Medicare members, among others, before acquiring Veyo.
The company handles non-emergency medical transportation for state and county governments, and is California non-emergency medical transportation broker. He also works with managed care organizations, health systems, and other programs serving the disabled, underserved, and older people. It partners with 1,250 transportation providers and transit agencies nationwide to provide services.
This story originally appeared in San Diego Union-Tribune.
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