Palmyra EMS merges with Hershey Med Center

Faced with increasing liability insurance costs and a managed care-inspired push for greater operating efficiencies, the Palmyra-based Citizen's Fire Company has announced plans to merge its Palmyra EMS Division with the ambulance service operated by Penn State's Milton S. Hershey Medical Center.

Andrew Tom, EMS manager for Palmyra, said the move will have no effect on the area covered by the two, now-united ambulance companies. University Hospitals EMS, the medical center's ambulance agency, has agreed to honor all of Palmyra's outstanding memberships and maintain advanced and basic life-support services in Palmyra Borough, North Londonderry, South Londonderry and East Hanover townships.

What the change will mean, Tom said, is that the Citizens Fire Company will be able to get out of a business that increasingly is requiring economies of scale to make it profitable.

"It's become a very growing business, the ambulance service," Tom said. "It's become basically more than a lot of volunteer companies can handle."

Statewide, Pennsylvania EMS officials say, an increasing number of ambulance companies have decided to leave a business that in recent years has required more capital outlays for new equipment and more administrative time to navigate the billing procedures for Medicare and private insurance companies.

"You're seeing it happen quite often," Tom said. "With managed care the way it's going, you're starting to see a lot of hospitals join up. A lot of ambulance companies are linking up as well. It's just more cost effective."

In October, St. Joseph and Community hospitals in Lancaster began operating their four ALS ambulances -- the most advanced, emergency-response vehicles -- under one jointly owned, independent corporation. Officials at the time said the move would increase efficiency and lower operational costs by spreading equipment and personnel expenses over a larger volume of calls.

Representatives of Hershey Medical Center and The Good Samaritan Hospital have also announced plans to form a joint regional EMS program.

Greg Swope, manger of pre-hospital services for the medical center, could not be reached for comment.

The Palmyra EMS Division currently has a staff of 30 paid crew members, Tom said. All of those people have been asked to re-apply for their jobs. Final staffing decisions will be made by officials at the Medical Center.

"Our people seem very excited about it," Tom said. "Certainly in the ambulance business, the opportunity to be associated with a hospital (seems to be a good thing)."