SCOTTSDALE, Ariz. — The country’s largest ambulance operator serving rural communities is preparing for a possible bankruptcy filing.
The Wall Street Journal reported that the situation involves private-equity owned Rural/Metro Corp. and the firm has been struggling with declining revenue from ambulance trips as well as a heavy debt load from a 2011 leveraged buyout.
Rural/Metro operates in 21 states and nearly 700 communities and provides more than 1.5 million 911 emergency and hospital-to-hospital transports annually, according to the report.
Rural/Metro has experienced higher debt expenses and declining revenue as the amount it gets paid for transporting patients by insures or the patients themselves has dropped, according to the report. The company reported a $29 million interest expense in 2010 and faces interest payments of a least $49 million in 2013, according to the report.
The company is currently negotiating with creditors and could receive another grace period on its missed interest payment if discussions progress well, according to the report.
“Operations are continuing as normal and we remain committed to meeting the needs of our customers, patients and communities,” Rural/Metro said. “Our top priority — as always — is to ensure that Rural/Metro’s talented emergency services professionals continue their lifesaving work.”