Drivers and office staff with Southdale Transportation Services, a long-running Twin Cities non-emergency medical-transport outfit, are gearing up to rally outside the Minnesota State Capitol after MTM Health abruptly pulled the plug on the company’s contract. The move puts roughly 95 independent contractors and office workers on edge and could disrupt thousands of non-emergency rides for Medicaid and privately insured patients, including daily school and therapy trips for children with autism.
According to the Pioneer Press, MTM Health sent Southdale a termination letter around April 6, even though the agreement had been set to run through May 8, 2026. MTM told the paper the decision followed “apparent violations” of the provider service agreement and pointed to concerns about potential fraud, waste and abuse. The outlet reported that Southdale had been handling about 10,000 trips per month, including roughly 199 daily rides for children with autism, and that most of the company’s drivers are East African immigrants working as independent contractors.
The Minnesota Department of Human Services provider directory lists Southdale as enrolled to provide non-emergency medical transportation for Medicaid clients in Hennepin County and other parts of the metro. That state listing highlights how many of the rides at risk are publicly funded and why families and service providers are watching the fallout from the contract dispute so closely.
Owner Ahmed A. Jama told the Pioneer Press that Southdale is the largest minority-owned non-emergency medical-transport company in Minnesota and that the termination felt abrupt. Company leaders say they filed a complaint with the Minnesota Department of Human Rights after receiving the notice, and drivers told the paper the loss would be devastating. “I’m losing my job, and I don’t want to go on welfare,” one driver said. A longtime client, Marsha Peterson of Eden Prairie, said she has used Southdale for more than ten years and “has not been disappointed.”
Local impact and next steps
Organizers say the Capitol rally is aimed at pressing state officials and MTM to explain the timing of the termination and to push for temporary arrangements so clients do not miss critical medical or school-related rides. Families, advocacy groups and drivers plan to call for a concrete plan to cover routes quickly if MTM’s decision stands, or to reverse the termination if any irregularities are confirmed.
Legal and policy questions
Southdale’s complaint with the Minnesota Department of Human Rights triggers an administrative review that could look at whether discrimination played any role in the contract cutoff, while MTM’s cited fraud concerns could prompt agency or insurer audits. Separately, any contract appeals and the logistics of reassigning thousands of trips would fall to MTM and Medicaid payers, putting immediate strain on the region’s transportation network.
Drivers and families plan to take their case to the State Capitol in St. Paul, and advocates say they will keep pushing until there is a clear plan for keeping rides going. This story will be updated as officials and MTM release additional information.
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