AMR Awarded 10 Year Contract in San Mateo County

October 1, 2008

Citing the nation’s economic turmoil as a major factor in their decision, San Mateo County supervisors Tuesday picked American Medical Response to provide ambulance service on the Peninsula for 10 more years.

The board voted 5-0 for AMR over two other bidders, saying the company’s dramatically larger cash flow and lower debt made it more likely to remain stable despite the shaky financial markets.

“In today’s volatile economy, stability is critical,” said Supervisor Mark Church, adding that he wants to avoid raising patient fees or having to bail out a provider. “I think AMR has demonstrated the fiscal ability to reach those goals.”

As recommended by Health Services Director Charlene Silva, the county now will negotiate a new, 10-year contract worth an estimated $200 million with AMR, which has run ambulance service on the Peninsula the past 18 years.

Critics of the bidding process, including the firefighters union and one of the losing bidders, Rural/Metro, questioned why Silva overruled the recommendation of an eight-member committee that evaluated the proposals. That committee recommended the county select Rural/Metro.

More than a dozen AMR paramedics and the emergency workers union urged the board to stick with that company, saying it pays good wages and provides benefits.

Meanwhile, firefighters union president Ed Hawkins and several firefighters were pulling for Rural/Metro. They said firefighters have long complained that AMR’s response times are spotty, though supervisors and AMR officials said the company has performed well.

The current system, adopted in 1999, sends a fire engine with a paramedic as first responder sto a medical call. AMR subcontracts with the fire departments and pays them between $3 million and $4 million per year for their services.

The new contract, which takes effect July 1, 2009, will have the same response time standards for urban areas: Fire engines must be on the scene in less than seven minutes and ambulances in less than 13 minutes at least 90 percent of the time to avoid fines. They are allowed more time for rural and remote areas.

Written by Palo Alto Daily News / News tip submitted by WC 911 member TaylorMade

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