By Todd South
Chattanooga Times Free Press
CHATTANOOGA, Tenn. — County executives from McMinn and Polk counties say residents shouldn’t worry about getting a ride to the hospital even though the local ambulance service has filed bankruptcy.
Med-Trans of Tennessee Inc. filed for Chapter 11 bankruptcy in June. Court documents show the company owes the Internal Revenue Service more than $1 million, although lawyers for the company dispute the amount owed.
Richard Klingler, an attorney representing Med-Trans, said he could not comment on specifics of the case, but said the company will continue to operate during the bankruptcy.
“This is a process,” he said, “but while the process is going on, the same service and business will continue as it did in the months before the filing.”
Bruce Collins, president of Med-Trans and the sole listed shareholder, could not be reached for comment.
Creditors, including the IRS and contracted service providers, are scheduled to meet July 13.
Med-Trans’ money troubles started when more than $4 million in state cuts to Medicare Part B providers hit last year. At the time, Tim Evans, director of Med-Trans in McMinn and Polk counties, said the company’s losses easily could amount to six figures per year.
Mr. Evans could not be reached for comment for this story.
Med-Trans is in the third year of a five-year contract with McMinn County and has served Polk County for at least 10 years, county executives said.
“Of course I was worried,” said Polk County Executive Mike Stinnett. “I had more sleepless nights over this than anything else. You don’t have an ambulance service, you’re talking about people’s lives.”
Polk County has met with Rural/Metro, another ambulance service that has agreed to provide backup for two months if Med-Trans is unable to serve, Mr. Stinnett said.
McMinn County Executive John Gentry would not discuss details, but said the county has a backup plan if anything disrupted Med-Trans service.
McMinn County owns three of the four ambulances that Med-Trans operates. Under the five-year contract, Med-Trans is to take over one ambulance a year until it owns them all.
Mr. Stinnett and Mr. Gentry said they’d spoken with Mr. Collins about Med-Trans’ financial troubles, but the bankruptcy filings came as a shock.
Mr. Gentry said he found out about the most recent problem when the IRS told McMinn County its next $20,000 payment to Med-Trans should be sent directly to the IRS.
Copyright 2009 Chattanooga Publishing Company