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Rural/Metro to acquire rival
ambulance company
Rural/Metro Corp. will acquire rival PMT Ambulance in a deal that will create a dominant 911 and non-emergency medical- transportation company in metro Phoenix.
Rural/Metro, which owns Southwest Ambulance, will purchase Professional Medical Transport and its related companies.
Terms of the deal between the privately owned companies were not disclosed.
The transaction will reverberate through city halls across the region because Southwest and PMT often sparred with each other over municipal 911 contracts. With the companies combining under one owner, it gives metro Phoenix cities and towns one less option when contracting for emergency medical service.
Still, both parties said the combined company will be financially stronger as g overnment agencies, such as the state's Medicaid program, cut reimbursement.
For customers, "it will be business as usual," Rural/Metro CEO Michael DiMino said.
If the combined company's service slipped after the merger is completed, consequences would be severe, he said.
"This is a highly regulated situation in Arizona, and we could easily lose our ability to serve," he said.
Ambulance companies are required to hold a "certificate of necessity" to provide emergency medical service to communities. The Arizona Department of Health Services requires ambulance companies to submit paperwork when they seek to transfer such certificates because of ownership changes. Municipalities that contract with PMT Ambulance also may be required to review their contracts with the company following the ownership change.
Bob Ramsey, who owns StarWest Associates, the parent company of PMT Ambulance, said he fielded several offers to sell his Tempe- based ambulance company. He sold to Scottsdale-based Rural/Metro because he believes the former competitors make a good fit.
Ramsey also cited a competitive ambulance industry, with smaller companies pairing up with larger companies as governments have reduced payments for ambulance service.
"It was just time to go to the next level," Ramsey said. "We really achieved everything we set out to do."
The deal also marks a return to Ramsey's roots. Ramsey founded Southwest Ambulance in 1982 and grew the company, securing several municipal 911 contracts before selling the company to Rural/Metro.
After Ramsey sold Southwest Ambulance, he launched PMT Ambulance with Pat Cantelme, a former Phoenix rire captain.
Since 2005, PMT Ambulance secured 911 ambulance service in Scottsdale, Paradise Valley, Tempe, Guadalupe, Peoria and parts of Chandler. All those municipalities were previously served by Southwest Ambulance. The service change came after sometimes contentious City Council votes, most recently in Peoria.
"In some ways, we are putting it all back together," DiMino said. "Since I got here over a year ago, I have learned to respect Bob. I think he was a good competitor. You always want to team up together if you can."
Even though Southwest Ambulance and PMT Ambulance will be owned by the same company, they will continue to operate under their existing names, both companies said.
DiMino and Ramsey said they don't expect job cuts as the two companies merge. Southwest Ambulance employs about 1,200, and PMT Ambulance has more than 600 employees.
Rural/Metro will also take ownership of Lifestar Ambulance, Lifestar Ambulette, ComTrans and American Ambulance.
Ramsey will not be employed by Rural/Metro, but he will serve as a consultant to DiMino. Ramsey also will maintain ownership of StarWest Associates and its subsidiary,
StarWest Tech, which provides technology services to ambulance companies.
But Ramsey said he has no plans to launch another ambulance company, and he agreed to not compete with Rural/Metro as part of the deal.
"It was time to look out for the long-term interest of our employees and our companies," Ramsey said. "That is really what drove me to do this."
Ken Alitucker - The Arizona Republic
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