When local governing agencies enter agreements with outside companies to supply needed services to their communities, issues often arise if one or more parties become dissatisfied with the consigned relationship. In California and elsewhere, contract disputes often cause people to worry that certain community services may be negatively affected if problems go unresolved. One community has recently experienced this due to a disagreement between the company that provides ambulance services to residents and the county mayor’s office.
The mayor recently stated that he does not consider a disputed contract all that unusual in his line of work. He said it is fairly common and should not cause people to worry. The mayor also said he realizes how vital ambulance services are to the community; therefore, the issues are being taken very seriously and all are working toward a swift and fair resolution to the problem.
Officials for the ambulance service say their contract is no longer viable. One of several reasons given is that insurance payments are often delayed or not made at all. The company’s regional director stated that no matter how hard his team has tried to overcome health care reimbursement challenges through cost minimization and increased revenue potential, they have not been able to sustain their services through their current contract.
The county mayor in Tennessee, where this issue remains ongoing, has apparently suggested adding fire fees to the contract to help bridge the gap that has reportedly arisen due to unpaid reimbursements. He also stated that he sees no reason to increase taxes or lose ambulance services because of the current contract disputes. Anyone in California facing similar business challenges can seek guidance by contacting an experienced business and commercial law attorney in the area.
Source: localmemphis.com, “The ABC’s Of The AMR Ambulance Contract Dispute In Shelby”, Mike Matthews, Aug. 16, 2016
