Study explores ambulance service

Adrienne Packer

Thursday, Nov. 11, 1999 | 11:17 a.m.

Introducing a second ambulance service into the Las Vegas Valley might benefit patients by lowering fees and improving service, according to a report released Wednesday.

Fitch & Associates, a consultant firm hired by Clark County last month, produced the report that explored the effect Southwest Ambulance would have on the ambulance industry if it were awarded a franchise agreement.

American Medical Response (AMR) and its former parent company Mercy Ambulance has had sole possession of the county's ambulance service since 1954.

"Allowing a competitive market to determine non-emergency, interfacility, critical care transport and special events coverage rates will likely benefit patients, health care systems and payers," the report says.

The Clark County Commission is expected to decide in December whether to allow Southwest Ambulance to enter the market.

"This is a balanced report that shows local government needs to be thoughtful in its approach to awarding a franchise," said John Wilson, executive partner with Southwest Ambulance. "In a nutshell, it says it can be done and done well."

Michael Williams, chief executive officer of AMR, has argued that allowing a second service provider would bump up the costs for his company which ultimately could result in increased rates for customers. The report says costs for the ambulance companies would increase by between $38 and $45 per patient.

AMR, which is regulated by an Oversight Committee made up of representatives from Clark County, Las Vegas and North Las Vegas, charges an average of $500 per call, including mileage. That figure is about midrange when compared to other cities of similar size.

The consultant's report says 5 percent of the nation's 200 largest cities have more than one ambulance service. Of the four primary methods to split up calls with two services -- geographically, on a rotation, the closest unit and call type -- Fitch & Associates recommended geographic districts.

"One of the challenges of initiating a division of the market place is the initial assignment of zones to each of the franchisees," the report says.

The firm split the valley into six districts and suggested that each ambulance service provider be assigned to three contiguous areas. AMR would have first choice as to which district it wished to serve.

"I think this report verifies what we have said all along," Williams said. "It seems every issue they were asked to address, they say you're better off the way it is now, but if you have to do it, this is how."

The report also addresses claims Wilson has made about AMR's response times. Wilson said AMR refused to release its figures, but the data he obtained shows AMR often exceeds the 8 minute, 59 second response time required by the county ordinance.

Fitch & Associates approved of the manner in which AMR provides data to the Clark County Business Licencing Office, but said safety mechanisms could be added to AMR's computer system to ensure times are not altered.

"The current franchisee staffs adequate ambulances to achieve the response time criteria of existing ordinances and franchise agreements," the reports says.