Falck to End Operations in Pa.

March 01--An ambulance company that provides services to Thomas Jefferson University Hospital, Main Line Health, and Crozer-Keystone Health System plans to close up shop June 30.

The company, Falck USA, an arm of a Danish company that operates in the Philadelphia region as Lifestar Response, blamed low reimbursement rates.

"Without proper compensation from those who ultimately pay for the services we provide, we are unable to sustain providing high caliber ambulance and medical transportation in a timely, reliable and safe manner," Falck USA's regional chief executive, Charles Maymon, said in a letter to employees Monday.

Maymon did immediately return a call Tuesday seeking more information.

The letter was posted on The Social Medic, a blog devoted to emergency medical services.

Under contract with the health systems, LifeStar transports patients after they are discharged from the hospital to nursing home, rehabilitation centers, or home, but the payments come from government and private insurers.

Jefferson, Main Line, and Crozer did not immediately response to requests for comment on how they will replace the services LifeStar provides.

Ambulance operators have complained widely that rates, such as the $120 per ride reimbursement from managed Medicaid companies, is too low and will lead to a collapse of the industry.

The expansion of Medicaid under Gov. Wolf, which added roughly 400,000 people to managed Medicaid membership, has exacerbated the losses.

Falck's decision to leave the Pennsylvania market is a symptom, one industry observer said.

Already in August, TransCare, which provided ambulance services to Main Line and the Philadephia Veterans Administration Medical Center, ended operations in the market.

Last week, TransCare Corp., which also had operations in New York, Maryland, and Pittsburgh, filed for Chapter 7 bankruptcy protection in New York.

hbrubaker@phillynews.com

215-854-4651

@InqBrubaker

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