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Bankrupt Tenn. ambulance service up for sale

By Randall Higgins
Chattanooga Times Free Press

CLEVELAND, Tenn. — The company that provides ambulance service to Polk and McMinn counties goes on the auction block this week.

Med Trans Ambulance Service declared bankruptcy last summer. Tuesday is the final day for interested companies to submit bids to U.S. Bankruptcy Court.

The high bid will be announced to other bidders first, giving them a chance to match or better that bid.

Attorney Andrea Hayduk, representing the company, said the winning bidder will be announced in court Wednesday, subject to approval by the bankruptcy judge.

Darnita Collins, vice president and wife of the company founder, said Med Trans started with one ambulance as a hospital transport company in the late 1990s. In 1999, the company became Polk County’s 911 service and, in 2007, Med Trans was awarded the emergency contract in McMinn County.

Trouble began last year when the state cut Medicaid payments from the budget, she said.

“Then along with the economy, with so many plants closing and people losing their health insurance, people just couldn’t afford to pay their ambulance bills,” Ms. Collins said.

The company has six ambulance stations now, four of which are in McMinn County.

But in spite of the bankruptcy, Ms. Collins said employees and the public should see little change in service after next week.

Those interested in buying Med Trans may submit bids on the ambulance service’s assets, including vehicles and its county contracts. Bidders could submit offers for service in one or both counties.

Both counties will have an opportunity to express opinions in court, she said.

“The employees have been super,” said Polk County Mayor Mike Stinnett. “There was some concern, but our citizens have not suffered any lack of service.”

Med Trans employees “have gone out there and done their jobs,” Ms. Collins said. “They have been very professional through this whole ordeal.”

McMinn County Mayor John Gentry said the county has made arrangements with Rural Metro Ambulance Service of Knox County for ambulance service.

“But there may not be any changes as far as the county is concerned,” he said.

McMinn County has had a good experience with Med Trans, he said.

“I guess I have had two or three complaints in three years,” Mr. Gentry said. “You’re talking about a company that answers 500 calls a month in McMinn County. That’s incredible.”

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