ModivCare Inc. reported a net loss of $201.3 million for the year ended December 31, 2024, compared to a net loss of $204.5 million in 2023. Net service revenue increased by $36.4 million, or 1.3%, to $2,787.6 million in 2024. This increase was driven by growth in the personal care services (PCS) segment, which saw a $29.7 million increase in net service revenue, partially offset by a slight decrease in the monitoring segment. The NEMT segment experienced a modest increase of $5.8 million in net service revenue.
Operating expenses increased by $103.3% of service revenue in 2024, compared to 105.3% in 2023. The increase in operating expenses was primarily due to a $63 million increase in service expenses, largely attributed to higher purchased services in the NEMT segment. A non-cash goodwill impairment charge of $105.3 million was recorded in 2024, compared to $183.1 million in 2023. Interest expense, net, increased by $24.9 million, or 36.1%, to $94.1 million in 2024.
The company's growth strategy involves both organic and inorganic expansion. Organic growth initiatives focus on increasing market share in core Medicaid markets and expanding into new transportation markets, such as home health provider transport and pharmacy delivery. Inorganic growth will continue through acquisitions in the NEMT, PCS, and monitoring segments, targeting smaller competitors to consolidate the fragmented market. Technological enhancements are a key component of the company's strategy across all segments, aiming to improve efficiency and the member experience.
During 2024, ModivCare managed approximately 36.8 million trips in its NEMT segment, serving an average of 29.5 million monthly members. The PCS segment served an average of 20,700 patients, providing approximately 28.2 million hours of care annually, utilizing approximately 18,300 caregivers. The Monitoring segment served approximately 247,000 actively monitored health plan members. The company employed approximately 23,675 team members as of December 31, 2024.
The company acknowledges substantial doubt about its ability to meet its obligations within one year, citing factors such as increased costs, contract losses, and extended collection periods. To address this, ModivCare is pursuing various strategic alternatives, including asset divestitures and seeking additional financing. The company also notes significant risks related to industry conditions, government regulations, cybersecurity, and its substantial indebtedness. The company has not paid cash dividends and does not expect to in the foreseeable future.
About ModivCare Inc
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