San Diego-based Veyo, which developed an Uber-style model to get Medicaid and Medicare members to doctor’s appointments, inked a deal to be sold to rival Medical Transportation Management of St. Louis for an undisclosed price.
The acquisition, which has not yet closed, is expected to bring Medical Transportation Management’s annual revenue to roughly $1 billion, the company said. MTM has 2,200 employees nationwide.
Veyo said its annual revenue is about $300 million. It employs 570 workers in 10 locations across the country, including call centers in Arizona and elsewhere.
The combined companies expect to provide 20 million trips per year to people in 31 states and Washington, DC
Co-founded in 2015 by Chief Executive Josh Komenda as a spin-out of Arizona-based Total Transit, Veyo is a transportation broker that aimed to disrupt the non-emergency Medicaid/Medicare transportation business by bringing onboard independent contractors who use their own vehicles to drive people to doctor’s appointments.
About 3.6 million people forego medical care each year because of transportation issues, according to the American Hospital Association. For older Americans, transportation is the third most common reason cited for not getting health care.
Veyo trained independent drivers in CPR, HIPPA rules, Americans with Disabilities Act procedures and other skills, and it inspected vehicles. Non-emergency transportation is covered for certain Medicare and Medicaid members, which in California is named Medi-Cal. The government-funded insurance programs pay for rides for people who cannot use public or private transportation and need assistance getting around.
Komenda will stay on with Medical Transportation Management in an undefined leadership role, the company said.
“While technology and innovation are incredibly important, so is the human touch and that’s where our vision for the future lies,” said Komenda in a statement. “With this merger of our companies, we’re bringing together the best of both worlds: MTM’s customer service focus and Veyo’s technology prowess and Independent Driver Provider model.”
Medical Transportation, also a broker, has been in business since 1995. A privately held, women-owned business, it handled more than 13 million trips per year to Medicaid and Medicare members, among others, prior acquiring Veyo.
The company manages non-emergency medical transportation for state and county governments, and is California’s non-emergency medical transportation broker. It also works with managed care organizations, health systems, and other programs serving the disabled, underserved, and elderly. It partners with 1,250 transportation providers and public transit agencies nationwide to provide services.