By Steve Athey
Part of what I do as an EMS consultant, is provide management training to EMS organizations. Like Bill Murray in “Groundhog Day,” I have found scenes eerily similar – and an important trend has emerged from these sessions. As the management team assembles in the morning, the boss gives an introduction speech to talk about issues. The speech goes something like this:
| Times are tough and getting tougher. We’re in good shape now, but we are worried about the future. We’re freezing managers’ salaries, so there will be no increases, but we are going to try to not cut positions. We are going to leave field positions untouched … for now. Be very, very careful with spending. |
There are always a lot of worried faces after a sobering start such as this. It’s a hard opening to follow. This scenario is happening in many more EMS organizations, both private and public, than I am personally aware of — and it’s becoming a hard reality.
I often have heard lay people say, “Oh, ambulance services are a recession-proof business.” The truth is, it’s not. The ambulance business relies on vehicles, real estate, fuel prices, investments, the need to collect receivables, and financing – just like many other lines of business. All have been negatively affected during this downturn in our economy.
As a friend of mine used to caution companies during good economic times, “High water hides a lot of stumps.” Well, the stumps are showing in EMS.
The National Bureau of Economic Research, the country’s business cycle arbiter, officially declared last month that the United States has been in a recession since December 2007. So even if you were slow to recognize that, you can’t be slow to respond. Here are some examples taken from organizations across the country on how to get your ambulance service in line with this new economic reality:
Have a Plan
You should revisit your strategic plan if you developed it in the summer or fall of last year — unless you are one of the handful of organizations that have an incredibly flexible plan. Your plan needs to take into account tougher collections, tighter financing, and the stricter demands of the new financial environment.
Take Care of Your Employees
I have anecdotal evidence (supported by some companies’ accounts) that employees are “job hopping” less in these uncertain times. That is good news for managers, but now is not the time to forget them or take them for granted.
Many EMTs and paramedics are part of two-income homes and their spouses may have lost their jobs, and their situation may have worsened without you knowing it. You should increase communications with employees and make sure you address their fears of personnel reductions and/or pay cuts. “In the absence of data; data will be made up.” You should be direct and accurate in your message, instead fabricating one due to a lack of proper information.
Don’t Let Service Slip
Many other industries have already seen the quality of their service slip. Retail outlets that have downsized frontline employees are trying to serve their customers with fewer — and in some cases, less capable employees – and it shows. This recession cannot be an excuse for providing anything less than stellar service – it is too important. EMS organizations that have to cut back need to do so in non-essential areas.
Watch Spending
EMS, both private and public, are going to have to tighten their belts, just like everyone else. I am reminded of the acquisition era during the ‘90s, when I worked for a company that was ultimately bought out by the Laidlaw Corporation, a multi-billion dollar, publicly-traded company. The company I worked for was strapped for cash and we looked at our “new parent” as a new source for cash flow. We all thought we would finally be able to buy some new things, but the Laidlaw gatekeeper didn’t let go of money frivolously. He said that small purchases add up. I didn’t like it then, but it is a good lesson about “wants” versus “needs.”
Take Advantage of the Situation if you Can
While the economic situation can be frightening, don’t be afraid to make smart decisions. Others will be distracted, and if you are in a position where you don’t have debt and don’t need to finance projects, you might be able to make competitive strides. If that is your case, you might be able grow your service, in spite of the financial environment.
Do Some Housecleaning
Rosabeth Moss Kanter, of Harvard Business School, believes you should un-clutter things that have outlived their usefulness in times of crisis. Turbulent times demand that resources go to the highest priority areas. She wrote:
| This is a personal lesson, since I deal with crisis by removing basement clutter or giving away old clothes—nothing like that clean closet feeling, and the action is under my control. The same principle applies to businesses. |
So if an EMS organization is cluttered, do the housecleaning, fast.
EMS is not recession proof, and most economic experts are telling us that the business environment is going to get worse before it gets better. EMS companies and organizations cannot afford to wait for the full impact of the recession to affect their company before they address the weak areas within their control. The high water has receded, so don’t let your stumps show.
