Ambulance competition around corner

Adrienne Packer

Tuesday, June 6, 2000 | 11:10 a.m.

A fleet of new ambulances and a computer-assisted dispatch system are en route to Las Vegas as Southwest Ambulance prepares to make history by introducing private competition to the emergency services market.

"For the first time ever, we're introducing competition to Southern Nevada," John Wilson, executive partner of Southwest Ambulance said Monday. "We'll see who has the quickest response and the best prices."

Wilson said he expects to receive a draft of a franchise agreement between Southwest, Clark County, Las Vegas and North Las Vegas this week.

The document, which must be approved by the Clark County Commission and the Las Vegas and North Las Vegas city councils, is the final step in the lengthy process to place ambulances on the road and compete with American Medical Response.

Between eight and 10 Southwest Ambulances should be in service by August, Wilson said. For at least the first six months, Southwest will not transport 911 responses and critical-care patients.

Wilson said he believes the bulk of Southwest calls will come from residents with non-life-threatening injuries or nursing facilities that need to transport patients and are looking for an alternative to AMR.

While AMR officials doubted Southwest's target starting date, Clark County Franchise Director Jim Spinello said it is "doable." Spinello said the county and two cities will consider the franchise ordinance and agreement in July.

The three jurisdictions have struck different agreements with Southwest, making the franchise contract more difficult to complete. Southwest eventually will provide nonemergency and emergency service to North Las Vegas and Clark County. It will respond only to nonemergency calls in Las Vegas.

"We're trying to come up with something we can use as a template that covers the difference in the cities and counties," Spinello said. "We're hoping we can get that done by the end of the week."

AMR representatives are suspicious of the optimism displayed by the county and Southwest since all three entities are mired in a lawsuit.

AMR sued the county and Southwest early this year saying Southwest must prove a need for two ambulance services before being granted a franchise contract. Unless it shows a need, AMR officials say, they should have exclusive rights to the contract until it expires in 2003.

The lawsuit also claims the Clark County Commission violated open meeting laws by directing staff members to begin negotiations with Southwest and AMR when the agenda item said the board simply was to receive Southwest's application.

Finally, AMR contends the county franchise code requires Southwest to provide a letter of credit before it can move forward.

"The parent company (Rural/Metro Inc.) is teetering on the brink of bankruptcy, so it's hard to imagine they can obtain one of those," AMR attorney Paul Larsen said.

Larsen said Southwest and the county have been meeting regularly to discuss the contract and application.

"It's the old game that if you can't comply with the existing law, change the old law," Larsen said. "Any change would require the county to close its eyes and ignore the law or change the law. So what they're doing is lowering the standard to allow Southwest in."

Larsen said a hearing date will be scheduled for next month in District Judge James Mahan's courtroom.

In the meantime, while Southwest celebrated its progress by moving into its new headquarters on Arville Street between Tropicana Avenue and Flamingo Road, AMR officials have been busy defending its own parent company's financial woes.

Laidlaw Inc., which specializes in transportation, deferred a $23 million interest payment due last month and could be in default if the payment is not made by June 14.

Laidlaw put AMR up for sale in September because it wants to concentrate on transportation. AMR officials said Monday that they are safe no matter what happens with Laidlaw.

"None of AMR's assets are pledged against the debt Laidlaw has with its lender," said Marijo Rymer, vice president of AMR's corporate communications in Aurora, Colo. "We have no intention of leaving any operation because of Laidlaw's problems."

Representatives in AMR's Martin Luther King Boulevard office said they have heard nothing from the county about Southwest's status.