In a letter from Falck Regional CEO Charles Maymon, the service provider has announced they are withdrawing from the state of Pennsylvania effective June 30, 2016 where it operated as Lifestar.
The letter states in part:
Although we have reshaped our business profile and exceeded customer expectations by providing unparalleled service to our clients, the market dynamics in Pennsylvania and lack of sufficient reimbursement from government and third party payers have made it impossible for us to continue our service delivery model to our valued customers. Without proper compensation from those who ultimately pay for the services we provide, we are unable to sustain providing high caliber ambulance and medical transportation in a timely, reliable and safe manner. Therefore we are unable to continue providing services in the Pennsylvania market after June 2016.
Falck had entered the Philadelphia market with its acquisition of Lifestar ambulance back in spring of 2011. The locations affected are in Plymouth Meeting (Philadelphia Region), Bethlehem (Lehigh Valley Region), and East Stroudsborg (Poconos Region).
This announcement comes on the heels of last weeks total shut down of TransCare, who operated in the Philadelphia market until September 2015 and Pittsburgh until this past Friday before being suddenly shut down by Patriarch Partners, the private equity firm that oversaw the company.