Plan”.Modivcare Confirms Restructuring Plan

Company expects to emerge from Chapter 11 in the coming weeks as a financially stronger organization

DENVER — Modivcare Inc. (OTC MKTS: MODVQ), a technology‑enabled health‑care services platform that integrates non‑emergency medical transportation, personal care, and remote patient monitoring, announced that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed its Plan of Reorganization. The court’s approval unlocks a path for the company to exit Chapter 11 within weeks, shedding a substantial portion of its debt, bolstering liquidity, and positioning its capital structure for sustainable growth.

“We entered this restructuring to create a leaner, more resilient organization capable of meeting the evolving needs of our members,” said Heath Sampson, President and Chief Executive Officer of Modivcare. “I’m grateful to our workforce, partners, and lenders for their steadfast support. With the Plan confirmed, we can accelerate our mission to deliver high‑quality, value‑based care.”

Modivcare expects to finalize the remaining procedural steps before year‑end, at which point all service lines—non‑emergency medical transportation (NEMT), personal care services (PCS), and remote patient monitoring (RPM)—will continue operating uninterrupted. The company reaffirmed its commitment to operational excellence and to maintaining seamless access to care for patients across the United States.

Additional Information

Modivcare’s restructuring was overseen by a consortium of leading legal and financial advisors, including Latham & Watkins, Hunton Andrews Kurth, Moelis & Company, Quinn Emanuel, FTI Consulting, Paul Hastings, and Lazard. The coordinated effort helped streamline the reorganization process and secured the backing of first‑lien lenders and noteholders.

Cautionary Note Regarding Forward‑Looking Statements

Statements contained in this release constitute “forward‑looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, assumptions, and estimates and are not guarantees of future performance. Actual results could differ materially due to risks and uncertainties described in Modivcare’s most recent Form 10‑K, Form 10‑Q, and Form 8‑K filings with the Securities and Exchange Commission.

About Modivcare

Modivcare Inc. operates a technology‑driven platform that connects public and private payors with members to address social determinants of health (SDoH). By integrating transportation, personal care, and remote monitoring, Modivcare helps health plans manage risk, control costs, and improve outcomes. The company’s data‑centric approach leverages analytics and automation to optimize service delivery, reduce administrative overhead, and enhance member engagement.

Industry Context and Strategic Outlook

The approval of Modivcare’s reorganization comes at a time when payors are intensifying their focus on value‑based care and population health management. The company’s technology stack—featuring a cloud‑based coordination hub, real‑time analytics, and AI‑driven routing for transportation—positions it to capture a growing share of the $70 billion non‑clinical services market. Analysts expect that the reduced debt load will free up capital for strategic investments in advanced analytics, machine‑learning predictive models, and expanded telehealth integrations, all of which could enhance the company’s competitive moat.

Moreover, the restructuring aligns Modivcare with the broader industry shift toward bundled payments and accountable care organizations (ACOs). By offering a single, interoperable platform that addresses SDoH, Modivcare can negotiate more favorable contracts with large health systems and Medicaid agencies seeking integrated solutions. The company’s strengthened balance sheet also improves its ability to pursue selective acquisitions, particularly in emerging tele‑health and home‑based care segments.

Investors will be watching the post‑Bankruptcy performance closely. Key metrics to monitor include cash conversion cycle, EBITDA margin expansion, and enrollment growth within its core NEMT and PCS programs. If Modivcare can successfully execute on its technology roadmap while maintaining high service quality, it may emerge as a pivotal player in the evolving landscape of cost‑containment and patient‑centric care.

Source: Modivcare Inc.