A bankruptcy judge signed off on a $25 million settlement between Colorado-based medical transportation company ModivCare Inc. and its largest customer, UnitedHealthcare Insurance Co., over objections from junior creditors.
A committee of unsecured creditors can raise settlement concerns at a hearing on ModivCare’s bankruptcy plan approval, but it didn’t provide evidence sufficient to deny the deal, Judge Alfredo R. Perez said during a Thursday hearing in the US Bankruptcy Court for the Southern District of Texas.
The settlement ended UnitedHealthcare’s network access contract, under which ModivCare provided nonemergency medical transportation in exchange for service fees.
“The evidence showed that the ...