Natick Eyes Privatization Of Ambulance Service
Natick Selectman Joshua Ostroff said during difficult economic times, it is the obligation of elected officials to explore all possible avenues to save money and improve municipal services.
That's why officials in Natick are exploring the idea of privatizing ambulance services in town, an issue that's been met with heated debate.
And as municipalities around the state consider privatization efforts, the result of those decisions can mean more business for local companies.
Natick Town Administrator Martha White said the town is far from making any decisions on what will happen, and she said there is no preconceived desire to push a privatization plan.
"We're doing a study of ambulance services and evaluating opportunities to improve cost effectiveness," White said. "It is not a plan to privatize."
Dollars And Cents
White said privatization is one option being explored, but the assistant town administrator has compiled a report outlining various plans, including a hybrid public-private partnership, having a sole private ambulance company operate the service, or leaving the status quo of the fire department operating ambulance services
Privatizing the service could result in the town losing some revenue, but it could also stabilize personnel costs over the long term.
According to the initial findings of the town report, to save money by using a private contractor, Natick would have to cut up to 15 positions within the 83-member fire department.
The current department budget is about $6.3 million and the town collects about $1 million annually from operating one ambulance full time and another as staffing allows.
Switching to a private contractor would remove that $1 million in revenue, but would reduce personnel costs.
The report also found, however, that switching to a private contractor would stabilize personnel costs over a five-year period and reduce the rate at which department costs increase. There would be an estimated $40,000 annual charge for a private contractor to supply the service.
Ostroff said people in town have been discussing privatizing ambulance service for years, but he's still not convinced a private plan is the way to go.
"The overarching challenge in this debate is that towns are under the gun to deliver services that people expect for the price they are paying," Ostroff said. "There are many services municipalities provide that people don't feel are worthy of their tax dollars, and so we need to make sure we are providing mandated services to taxpayers at a reasonable price."
At recent a board of selectmen meeting, members of the fire union in town voiced opposition to the plan.
Ostroff said he's specifically going to be looking at the financial implications of making a privatization switch, the quality of the service (including response times) and the impact on the department.
Of course, local ambulance companies are more than happy to take on the responsibilities of responding to emergencies for a town. Nick Melehov, vice president of MedStar Ambulance, a Leominster and Worcester-based regional ambulance provider, played up his company's singular mission as an ambulance provider.
"This is all we do so we're able to focus all of our attention on providing the best service possible," he said. Plus, he said, privatizing the services can save a municipality money in personnel, training and overtime costs as well as benefit packages. Private companies also usually have more ambulances that are able to go out on calls compared to the city or town department.
Fitchburg Fire Chief Kevin Roy said he's happy the North Central Massachusetts community made the switch three years ago to a public-private partnership with MedStar.
"It's been a win-win for us," said Roy, who has been the chief since 1995.
The partnership allows the city to always have a minimum of three ambulances on call at any time, plus gives the city backup for additional ambulance requirements if needed from MedStar.
White, the Natick town administrator, said she expects the community to continue studying the issue and in the next few weeks come to a decision on whether any changes would be made for next fiscal year, which begins in July.
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