Rural Metro preparing for possible bankruptcy
Posted at: 08/02/2013 3:43 AM | Updated at: 08/02/2013 10:08 AM
Rural Metro, a company that many people in the Rochester area depend on in medical emergencies, might be on the verge of bankruptcy.
According to The Wall Street Journal, the company, based in Scottsdale, Arizona, is preparing for possible bankruptcy protection. They say financial troubles stem from ambulance workers not being allowed to deny emergency transportation to uninsured people.
In recent years, high unemployment has increased the number of uncompensated trips leading to a revenue decline. The report says Rural Metro is negotiating with creditors and could get an deadline extension to pay its debts.
The country's largest ambulance operator has a contract with the City of Rochester.
News10NBC is waiting for a response after calling the local spokeswoman to ask what would happen here in Rochester if Rural Metro files for bankruptcy protection.
Rural Metro employs 10,000 people nationally.
Rochester Mayor Tom Richards issued a statement saying, “The City is aware of the reports surrounding Rural/Metro Corp.’s financial situation and we have discussed the situation with the company’s management. The City’s agreement with Rural/Metro provides various options for the City to step in should there be a service problem. Locally, we have experienced no degradation of service and we have been assured there will be none. That being said, we are closely monitoring the situation and will remain in touch with the corporations senior management. Any further comment on Rural/Metro’s financial situation will have to come from them.”