Northwest Texas Healthcare System wants out of the ambulance service business, an endeavor its CEO says lost $1.6 million last year.“First of all, we’re losing money,” CEO Kyle Sanders told the Amarillo City Commission on Tuesday.
Sanders and a representative of prospective buyer American Medical Response broached the subject with the commission because it has the power to license ambulance services in the city.
American Medical Response is considering purchasing Northwest’s Amarillo Medical Services, though no deal has yet been inked, according to Sanders and Ted Van Horne, CEO for AMR’s Southern region.
AMR, a Colorado-based company, employs 18,500 paramedics, emergency medical technicians and other professionals in 38 states and the District of Columbia, according to its Web site.
The company’s size means it can purchase equipment and handle training and other functions on a large scale, one way it can cut costs, Van Horne said.
The company also would be able to increase revenues because it can bill Medicare services differently, he said. Hospitals are paid for ambulance services by Medicare at a rate for hospital services.
“They (AMR) feel like, sometime in the future, they can bring it (the ambulance operation) back up to a profitable entity and increase the level of service,” Sanders said.Read More, Northwest says AMS lost $1.6M last year