Modivcare Completes Restructuring, Eyes Tech Investment with New Capital

DENVER, CO – December 29, 2025

Modivcare Inc., a pivotal technology-enabled company in the healthcare services sector, has successfully completed its financial restructuring and emerged from Chapter 11 protection, marking a significant turning point for the organization. The company announced it has shed over $1.1 billion in debt and secured $100 million in fresh capital, transitioning to a privately-owned entity with a mandate for growth and technological innovation.

The restructuring process, which allowed Modivcare to continue its operations without any interruption to its clients or members, has fundamentally reshaped its financial standing. Now armed with a fortified balance sheet and significantly reduced annual cash interest expenses, the company is poised to more aggressively pursue its mission of improving health outcomes through integrated supportive care.

A Financial Clean Slate

The core achievement of Modivcare’s Chapter 11 process was a dramatic deleveraging of its balance sheet. The company eliminated more than 85% of its prior funded debt, a reduction totaling a staggering $1.1 billion. This move, combined with a successful capital raise of $100 million, provides the firm with substantial liquidity and newfound financial flexibility. Such a comprehensive overhaul is designed to free up resources that were previously allocated to servicing debt, redirecting them toward strategic investments and operational enhancements.

“This marks Day One of a stronger Modivcare,” said Heath Sampson, Chief Executive Officer and President of Modivcare. “We took deliberate action to strengthen our financial foundation so we could focus fully on what matters most: delivering reliable access to care at scale and investing in the capabilities our clients need for the future.”

Sampson’s statement underscores the strategic nature of the bankruptcy filing, often utilized by companies with solid underlying business models but unsustainable capital structures. By addressing the debt burden head-on, Modivcare has effectively hit the reset button on its finances, enabling management to concentrate on its core mission without the weight of overwhelming interest payments. The result is a more stable enterprise prepared for long-term, sustainable growth.

A Renewed Focus on Supportive Care Innovation

With its financial house in order, Modivcare is turning its full attention to enhancing its platform of supportive care solutions. The company is a key player in addressing the social determinants of health (SDoH)—the non-medical factors like transportation and living conditions that significantly impact health outcomes. Its primary services include non-emergency medical transportation (NEMT), personal care services (PCS), and remote patient monitoring (RPM).

The infusion of $100 million in new capital is earmarked for investment in “technology, analytics, and service excellence,” according to the company. In an increasingly digital healthcare landscape, technology is the connective tissue that makes these supportive care services efficient and effective. For Modivcare, this means improving the platforms that connect health plan members with essential transportation to medical appointments, provide in-home personal care to vulnerable individuals, and monitor patients’ health remotely to prevent costly hospitalizations.

Enhanced analytics will allow the company to better understand patient needs, predict risks, and demonstrate value to its clients, which are primarily public and private payors. By proving that its services help reduce overall healthcare costs and improve member health, Modivcare can solidify its position as an indispensable partner for health plans managing complex patient populations.

New Ownership and a Path Forward

The restructuring culminates in Modivcare’s transition from a publicly traded entity to a privately-owned company. It is now under the ownership of a group of seasoned investors who have expressed strong confidence in the company's market position and future strategy. This shift to private ownership can offer several advantages, including the ability to pursue a long-term strategy without the quarterly pressures of public market expectations.

“We have always believed in Modivcare’s leadership position,” a representative for the new investor group stated. “This restructuring strengthens the Company’s ability to invest at scale in the technology, data and operational capabilities that matter most to clients. Modivcare is well positioned to extend its leadership and continue delivering essential care in more efficient and innovative ways.”

This endorsement from its new owners signals a strong alignment on the vision for the company's future. The governance structure is also being refreshed, with new directors from the investor group joining the board. Their financial and strategic investment will be instrumental in shaping the company's direction, while the retention of many existing board members ensures a level of continuity and institutional knowledge.

Uninterrupted Service Through a Complex Process

Perhaps one of the most critical aspects of Modivcare’s Chapter 11 journey was its ability to maintain seamless operations. The company provides essential services to millions of members, many of whom are among the most vulnerable patient populations. Any disruption in non-emergency medical transportation or personal care could lead to missed appointments, lapses in care, and negative health consequences.

Modivcare successfully navigated the entire restructuring process without any interruption to its services for clients, health plan members, transportation providers, or other partners. This achievement highlights a well-executed plan that isolated the financial restructuring from the day-to-day operational core of the business. It sends a powerful message of reliability and stability to its partners and the communities it serves, reinforcing trust at a critical juncture. By ensuring that its complex financial maneuvering remained invisible to the end-user, Modivcare demonstrated its commitment to its foundational mission of providing access to care.

This operational consistency, coupled with its newly fortified financial foundation and clear strategic direction, positions Modivcare to not only continue but also expand its role in the evolving healthcare ecosystem. The company's ability to connect members to care, manage risks for health plans, and improve outcomes is more critical than ever, and its successful emergence from Chapter 11 provides the stability and resources to meet that demand.