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SPENCER – Representatives from Cataldo Ambulance Service Inc. as well as the Spencer Rescue Squad spoke at the May 27 Board of Selectmen’s meeting about providing emergency medical services to the town going forward.
The Spencer Rescue Squad, a nonprofit organization, has been the EMS provider since 1959.
A recent Proposition 2 ½ override request to fund a three-year contract failed. The current contract of $225,000 expires June 30. The town was seeking $100,000 in year one and $25,000 each in years two and three to settle negotiations and maintain the services at a higher rate.
During a previous meeting, Selectmen spoke with Spencer Rescue Squad President Pat George about accepting a six-month extension or one-year contract while they figure out how to move forward and possibly put together a Request for Proposals (RFP).
At that time, George said the Board of Directors wanted a three-year contract executed at the higher rate. The organization has been paid at the same rate for seven years and is struggling to keep pace with inflation and high equipment costs, he said.
During Tuesday’s meeting, however, Rescue Squad director Jim Pervier said the nonprofit would be amenable to a one-year contract at $325,000 or even a three-year one with language indicating it would be contingent on funding.
He spoke about the organization’s desire to maintain its staff and personnel and provide stability for them. Pervier also talked about his personal medical emergencies, saying if it was not for the Spencer Rescue Squad, he would not be here today or may have been debilitated.
Calling the care “second to none,” he said, “you can’t put a price on it.”
Several other speakers praised the Rescue Squad for its services and dedicated staff.
Ryan Flannery, a prior resident of Spencer now living in East Brookfield, spoke about his experiences as part of the Spencer Rescue Squad. He called it, “world class, second to none and the anchor for central Massachusetts since the 60s.”
Flannery urged selectmen not to go with a private, for-profit provider, who he said would not give the “community-based services,” Spencer receives now.
Dennis Cataldo, whose parents started the for-profit business 48 years ago, said the ambulance company serves 14 communities, many for several decades. It has 100 ambulances and 900 employees.
He said they came before the board with a proposal in the event Spencer Rescue Squad could not be funded to continue.
“We’re here as a solution for EMS coverage going forward,” Cataldo said.
“We have all the capabilities. There will not be a denigration of services,” he added.
The company would provide two ambulances—eight hours per day, seven days a week.
Selectman Ralph Hicks said he is concerned that only one of the ambulances would have advanced life support services (ALS) while the other provides basic life services (BLS). Spencer Rescue Squad provides ALS services.
Hicks also asked about a dedicated staff to cover Spencer rather than “a hop scotch approach.”
Frank McNeil, senior director of operations, said they could pull staff from Worcester for ALS and BLS services and it is also their intent to recruit from Spencer Rescue Squad’s personnel.
He acknowledged the importance “to have local people who know the streets and residents.”
McNeil said Cataldo does not have a membership program like Spencer Rescue Squad, whereby people pay an annual fee and can waive a co-payment for ambulance rides.
However, he said, whether such a program is implemented in the future would be based on community interest for it.
The Cataldo representatives also said they are aware that 80% of Spencer residents are on Medicare and Medicaid, meaning reimbursements will be lower for them.
They also spoke about their training expectations and capabilities and said they are prepared to find space to conduct operations on short notice.
Selectman Jared Grigg asked how the company was able to come up with a $225,000 total to provide services.
Cataldo replied that the company has “economics of scale,” their ability to absorb overhead is “inherently lower,” and the company has an advanced billing department to recover funds from all payor sources. Its personnel management also results in less overtime funds, he said.
The price is based on total responses, total transports and an estimate on payor mix, Cataldo said. He added that when they provided a bid, they had no idea if it would be “highly advantageous or significantly less,” than Spencer Rescue’s cost to operate.
Town Administrator Jeff Bridges said town counsel is currently reviewing Cataldo’s contract. He reminded the board that Spencer Rescue Squad’s willingness to accept a one-year pact is a change from its previous stance.
Bridges added that the town is “blessed,” to have these options.
Hicks said he appreciates that both entities have been operating for a long time. He noted that using “one-time money, free cash,” to cover one year of the Rescue Squad’s contract, is not the way things are usually done.
He recommended the board meet again as soon as possible to give enough time to Cataldo or Spencer Rescue Squad to move forward with plans.
He agreed with Selectman Jonathan Viner’s suggestion last week that the town put out a request for proposals (RFP) later this year, which either or both could respond to as well as other interested parties in providing EMS services.
