LANSING, Mich. — Several Michigan EMS agencies say they are carrying millions of dollars in unpaid bills tied to ambulance transports and other emergency medical services provided to incarcerated patients, WCMU reports.
The Michigan Association of Ambulance Services estimates its members are owed about $6 million tied to a failed prison healthcare contract overseen by the Michigan Department of Corrections.
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Kinross EMS, which serves Michigan’s eastern Upper Peninsula, is owed roughly $430,000, according to director Renee Gray. The balance stems from 224 unpaid ambulance transports involving a nearby state correctional facility.
“We are constantly watching the dollar week to week,” Gray told WCMU. “Trying to figure out if we can make it to the next payroll.”
Contract dispute and unpaid bills
The unpaid transports trace back to a $590 million contract awarded in 2021 to Wellpath, with Grand Prairie Health serving as a subcontractor. The companies were responsible for paying outside medical providers, including EMS agencies, for care provided to incarcerated patients.
Under the agreement, the companies were responsible for coordinating and paying for outside medical services inmates required, including emergency ambulance transports, hospital care, physician services and medications.
State officials say those payments did not consistently occur. Michigan terminated the contract two years early in 2024 and is suing the companies for more than $35 million, alleging repeated failures to meet contractual obligations, including paying EMS agencies and other medical providers. Court filings described the companies’ performance as “dismal,” citing missed payments and repeated requests for additional funding, WCMU reports.
Other EMS agencies reporting significant unpaid balances include Jackson Community EMS, owed more than $630,000; Lapeer County EMS, owed about $140,000; and Richard Lennox EMS in southeast Michigan, owed roughly $134,000, according to WCMU.
Impact on staffing and response
Angela Madden, executive director of the Michigan Association of Ambulance Services, said bankruptcy proceedings involving Wellpath make repayment unlikely.
“The idea that EMS agencies will be made whole through bankruptcy is unrealistic,” Madden said.
Madden warned that without state reimbursement, agencies may be forced to delay equipment replacement and struggle to maintain staffing levels — factors that could affect response capacity.
Gray said Kinross EMS has already had to rely more heavily on part-time staff and has joined a regional EMS authority to manage financial pressure.
If the issue remains unresolved, she said service reductions could follow.
“We’ll keep doing what we can,” Gray said. “But there’s only so much you can stretch.”
Wellpath did not respond to a request for comment from WCMU, and Grand Prairie Health could not be reached. The Michigan Department of Corrections said it continues to pursue damages through litigation.
