2023-07-31 12:41:02 ET
DocGo ( NASDAQ: DCGO ), which is focused on mobile health and medical transportation services, is down 7% following a report in The New York Times that accused the company of falling short in providing services for migrants in New York City seeking asylum.
According to the newspaper, DocGo ( DCGO ) was given a no-bid, $432M contract by the city that became effective in May to provide housing and services such as case management, medical care, food, and transportation.
DocGo ( DCGO ) had another contract with the city during the COVID-19 pandemic to provide testing and vaccines.
The Times piece includes interviews with migrants who were bussed from New York City to hotels in the Albany area. They claim they were subject to threats from security staff and false promises of work. They added documents they were given by DocGo ( DCGO ) saying they were eligible to work as independent contractors were faked.
The newspaper added that in June the company was told that the migrants were not eligible to work. However, letters saying otherwise were still be given out in July.
In an update to investors Monday, Stifel's David Grossman, who rates DocGo ( DCGO ) a buy, said that complaints from migrants have dealt with subcontractors and health services, the company's core competency, was not mentioned by them.
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DocGo down 7% following NY Times piece critical of NYC migrant contract