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January 07, 2017 12:00 AM

New York City ambulance owners say dispatch firm owes them millions

Modern Healthcare
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    National MedTrans Network, a Long Island-based company that dispatches nonemergency ambulances in New York City, has grown at a stunning pace—with revenue increasing 1,765% from 2012 to 2015, according to Crain's New York Business data. But the city's ambulance companies that answer its calls say the dispatcher owes them more than $2 million, some of it for trips that date as far back as early 2015. The ambulance operators get reimbursed less than $200 per nonemergency trip from Medicaid managed-care plans, but each trip costs them about $260, according to an analysis by the Downstate Ambulance Association. As the broker, National MedTrans handles transportation requests from the so-called managed long-term care plans that tend to elderly and disabled Medicaid patients. National MedTrans acts as the go-between with the ambulance companies and takes a fee on each transaction. It's responsible for processing the invoices from the ambulance operators and submitting them to the managed care companies for payment. Demand for National MedTrans' services has exploded as other states have moved to managed care. National MedTrans is already serving two plans in California, each with more than 200,000 members, and has inked a deal with a Chicago managed-care plan that will start offering transportation benefits this year, company President Billy McKee, who is based in Salt Lake City, told Crain's in August. But that growth has led to delays in paying vendors, according to a representative of the Downstate Ambulance Association. McKee had said he would produce a dollar amount National MedTrans believed it owed each of the ambulance providers by Nov. 15 and would work with each one to reconcile any differences. That reconciliation process, however, has not yet been completed, according to ambulance company owners. —Crain's New York Business

    —Crain's New York Business

    Geisinger completes deal to acquire Pennsylvania medical school

    Geisinger Health System has officially integrated a medical school into its health system. The Danville, Pa.-based system received regulatory approval on Jan. 2 to move forward with its proposed purchase of Commonwealth Medical College. Geisinger first announced its intention in September. The medical school, which is now named Geisinger Commonwealth School of Medicine, opened in 2008 and is located in Scranton, Pa. It has campuses in Sayre, Wilkes-Barre and Williamsport, Pa. Geisinger, which currently employs about 30,000 people, will retain all 1,200 faculty members at Commonwealth. The system will also support operating costs and expansion at the institution. The acquisition will allow Geisinger to train, retain and recruit physicians, CEO Dr. David Feinberg said when the announcement was first made. Dr. Steven Scheinman will continue to serve in his current role as president and dean of the medical school. He is expected to pick up the titles of chief academic officer and executive vice president at Geisinger

    —Modern Healthcare

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