Ambulance service provider sues county

Adrienne Packer

Tuesday, Dec. 14, 1999 | 11:15 a.m.

A lawsuit filed by American Medical Response (AMR) on Monday not only accused Clark County of violating its ambulance franchise code, but it sent a not-so-subtle message to the cities of Las Vegas and North Las Vegas.

AMR's lawsuit claims the application from the upstart Southwest Ambulance was accepted by the Clark County Commission even though it did not meet requirements set forth by the county franchise code.

AMR attorney Paul Larsen said Southwest's application never proved a need for a second ambulance service and failed to describe in detail the company's equipment, vehicles or the setup of its dispatch center as the code requires.

"The application admitted that Southwest Ambulance effectively has no ambulance equipment or employees, except for two demonstration ambulances," the lawsuit says.

Larsen insisted the lawsuit is solely about the Clark County Commission's Dec. 7 decision that could allow former AMR administrators John Wilson and Sharon Henry to start their own company and compete with AMR.

But the timing of the lawsuit and subsequent press conference raised questions.

"This is a lawsuit to prevent a third more ambulances from being on the road," said Wilson, who noted that AMR is for sale by its parent company Laidlaw Inc. "It's transparent that this is nothing more than a delay tactic. AMR is worth a lot more as a monopoly than it is if there are two providers."

Las Vegas and North Las Vegas, whose franchise agreements with AMR are identical to the county's contract, are scheduled to consider Southwest's application during their Wednesday city council meetings.

If they also accept Southwest's application, they too could find themselves the target of similar lawsuits.

Council members with both boards have said they will reserve their opinions about competing services until after they hear presentations from AMR and Southwest representatives.

Clark County Franchise Manager Jim Spinello said AMR's lawsuit might be premature because commissioners didn't approve Southwest's application, they simply asked staff members to begin negotiating with Southwest.

Spinello said that after negotiations the application would again be brought before the board. At that time Southwest, which is a subsidiary of Rural/Metro Corp., would be required to describe its operation and explain exactly how it planned to serve the community.

"An actual franchise agreement at this point has not even been granted," Spinello said. "Their action was that we begin negotiations, at which time we would cover a whole range of issues." Clark County attorneys did not return phone messages.

AMR's franchise agreement with the county and two cities are nonexclusive, meaning they can entertain applications from competing companies before AMR's contract expires in 2003.

While AMR attorneys insist that Southwest Ambulance must show a need for a second service provider, Spinello said the county is only required to determine whether a competing ambulance company would be a "public convenience."

"It appears to me that the code creates a barrier to entry, and they want an entity that has the wherewithall and managerial ability," Spinello said. "It creates a high standard for what the application requires."

Larsen said the county should have commissioned a formal review of AMR's performance before going forward with Southwest Ambulance's application.

"One problem with the commission's action was they were misinformed," Larsen said. "Southwest was required to show a need. It tossed out statistics they spun quite well, but AMR has met all its requirements."

In addition to failing to address whether there is a need for a second service or forcing Southwest to prove they have the equipment to serve the Las Vegas Valley, AMR contends the county violated open meeting laws by going beyond simply accepting the application.

"This action is not taken with malice, but out of duty and responsibility to the citizens of Clark County, whose safety and health is our highest priority," said AMR Chief Executive Officer Mike Williams.

"All we're saying to the court and to the county is, do the right thing."