Modivcare Rises From Chapter 11, Armed with New Capital for Tech Push

NEW YORK, NY – December 29, 2025 – Modivcare Inc., a major provider of supportive care services for millions of Americans, has successfully completed its financial restructuring and emerged from Chapter 11 protection. The move marks a dramatic turnaround for the company, which wiped out over $1.1 billion in debt and secured $100 million in fresh capital, positioning it to aggressively invest in technology and expand its services.

The company's emergence as a privately-owned entity concludes a swift, four-month bankruptcy process that began with a voluntary filing on August 20, 2025. Throughout the proceedings, Modivcare emphasized that its operations—including non-emergency medical transportation (NEMT), personal care, and remote patient monitoring—continued without interruption for its health plan clients and their members.

A Swift Financial Overhaul

The restructuring, confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on December 12, 2025, represents a significant financial reset. Modivcare slashed its funded debt by over 85%, reducing its obligations from approximately $1.4 billion to around $300 million. This drastic deleveraging is projected to cut the company's annual cash interest expenses by more than 80%, freeing up substantial capital for reinvestment.

The core of the reorganization plan involved a debt-for-equity swap. Creditors holding $871 million in first-lien debt received 98% of the equity in the newly reorganized, private company. Holders of $316 million in second-lien debt received the remaining 2% equity. This transaction effectively transferred ownership from previous shareholders to the company's primary lenders.

To ensure operational stability and fuel future growth, Modivcare also secured $100 million in new financing. This began as debtor-in-possession (DIP) financing during the Chapter 11 case and has now converted into an exit term loan. The company also has access to an up to $250 million revolving credit facility, further bolstering its liquidity and providing a strong financial foundation. The rapid execution of the plan, from filing to emergence in just over four months, showcases a meticulously managed process designed to minimize disruption and maximize future viability.

New Ownership and a Sharpened Focus

With its emergence from Chapter 11, Modivcare transitions from a publicly-traded entity to a private company owned by a group of its former creditors, described as "seasoned investors." This shift in ownership structure is accompanied by a revamped board of directors, which will see new members with significant financial stakes in the company serving alongside experienced existing directors.

This move to private ownership frees Modivcare from the short-term pressures of quarterly earnings reports and public market scrutiny. Analysts suggest this can empower the company to pursue a more aggressive, long-term growth strategy focused on technological innovation and market expansion. Without the need to cater to the daily fluctuations of the stock market, the new leadership can direct its full attention toward operational excellence and strategic investments that may take longer to mature but promise greater returns in service quality and market share.

The successful restructuring serves as a potential blueprint for other large-scale service providers in the complex and highly regulated healthcare industry, demonstrating that Chapter 11 can be a strategic tool for rapid financial rehabilitation rather than a signal of operational failure.

Fortifying a Leader in Supportive Care

Modivcare operates at a critical intersection of healthcare and social determinants of health (SDoH), providing essential services to millions of Medicaid and Medicare members across 48 states. Its largest service line, Non-Emergency Medical Transportation (NEMT), is a cornerstone of healthcare access for vulnerable populations, ensuring patients can get to and from vital medical appointments.

The company holds a commanding position in this growing market. In 2021, it controlled an estimated 28% of the NEMT sector. The market itself is on a steep growth trajectory, driven by an aging U.S. population and a rising prevalence of chronic conditions. Projections show the NEMT market expanding from around $10.22 billion in 2025 to as much as $15.57 billion by 2028.

However, this lucrative market is also highly fragmented and competitive, with rivals including LogistiCare, Veyo, and MTM, as well as technology-first entrants like Uber Health and Lyft Healthcare. Modivcare's newfound financial stability is crucial for it to defend and expand its market share against these diverse competitors.

Beyond NEMT, the company is a key player in the rapidly expanding Remote Patient Monitoring (RPM) market. The U.S. RPM market alone was valued at nearly $15 billion in 2024 and is expected to double to over $29 billion by 2030, with estimates suggesting over 71 million Americans will use RPM services by 2025. This growth is fueled by a push to manage chronic diseases more effectively, reduce hospital readmissions, and lower overall healthcare costs.

Fueling the Future with Technology and Analytics

Company leadership has been clear that its financial rebirth is not just about a healthier balance sheet, but about providing the fuel for an aggressive technological transformation. The infusion of new capital is earmarked for significant investments in analytics, digital platforms, and service excellence to solidify its leadership in supportive care.

For its NEMT services, this means moving beyond its current advanced routing software toward next-generation, AI-powered dispatch and route planning. The industry is rapidly adopting predictive analytics to forecast demand, optimize scheduling, and reduce delays, all of which lower operational costs and improve the member experience. Real-time vehicle tracking and enhanced communication platforms are also becoming standard, providing health plans and members with a transparent, 360-degree view of the service.

In the RPM and personal care sectors, the investment will likely accelerate the use of AI for trend detection in patient data and the development of more sophisticated clinical decision support tools. By integrating its digital platforms and offering open APIs to health plans, Modivcare aims to create a more connected ecosystem of care. This "high-tech, high-touch" approach, combining data-driven insights with human engagement, is central to its strategy for improving health outcomes and reducing costs for its partners.

This technological push is directly tied to addressing the social determinants of health, which are the economic and social conditions that influence health outcomes. By ensuring reliable transportation, providing in-home support, and monitoring chronic conditions remotely, Modivcare's services tackle some of the biggest barriers to effective healthcare for vulnerable populations. Its strengthened financial position allows it to build more robust, efficient, and data-informed solutions to these persistent challenges. The successful restructuring and renewed focus on technology could intensify competition and drive further innovation across the supportive care industry, ultimately benefiting the millions of members who rely on these essential services.