Heather Taylor
Red Bluff Daily News, Calif.
Effective today, PHI Air Medical announced it is suspending its Red Bluff operations at the Red Bluff Municipal Airport because major health insurance companies are failing to reimburse it for its services.
The base in Red Bluff opened in 2024, and has provided care at the scene of accidents and by transferring patients between regional hospitals. The company stated it has also housed one of only a few air ambulances in the state with whole blood on board.
“PHI Air Medical services have been vital for this community, which has no Level 1 trauma centers within 50 miles,” a Monday press release stated.
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The local closure comes after the company stated commercial health plans have shirked reimbursement obligations, which they stated makes it “increasingly unstable” to continue providing resources. Insurance companies named included Elevance and Blue Cross Blue Shield of Texas .
PHI Air Medical stated insurers like Elevance send “impossibly low” offers that don’t cover the cost of operations, staffing, rising fuel costs and more to the medical services provider.
“One provider in particular — Elevance Health, the largest managed care entity in the Blue Cross Blue Shield Association network—has engaged in a widespread and systematic practice of failing to pay binding payment determinations issued through a federal arbitration process mandated by Congress . Currently, there are more than 1,000 binding federal arbitration awards issued under the No Surprises Act, representing approximately $30 million in outstanding debt owed to PHI nationwide by Elevance, a clear violation of federal law,” the Monday press release stated.
PHI Air Medical Co-President Paul Julander stated the decision to suspend Red Bluff operations was not made lightly, but stated insurance companies are breaking the law and refusing to reimburse the medical provider for the care delivered. Julander compared it to walking out of a grocery store without paying for items and said if everyone engaged in that behavior the entire community would suffer as the store was forced to close.
“We hope to have the opportunity to serve the Northern California community again but are unable to do so when insurance companies can ignore laws and simply refuse to pay legally binding awards. In the meantime, we thank our skilled and dedicated pilots, flight nurses, advanced paramedics, and maintenance staff for their extraordinary efforts and commitment to providing high-quality, life-saving care. We will work closely with those impacted to help them transition to new opportunities,” Julander stated.
PHI Air Medical operates over 80 air bases nationally, and transport over 22,000 patients annually.
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