Business Services Industry
Rural/Metro Named Critical Care Transport Provider to University of Colorado Health Sciences Center; Marks Ten Contracts Signed in 2001 With Combined Total Value of $19.9 Million
Business Wire, July 6, 2001
Business Editors
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--July 6, 2001
Rural/Metro Corporation (Nasdaq:RURL) announced today that it has expanded the scope of medical transportation services it provides to the University of Colorado Health Sciences Center in Denver.
Under a new, five-year contract, Rural/Metro is the preferred provider of critical care transport (CCT) services through a unique partnership with the Center's "LifeLink" medical transportation program. According to the agreement, Rural/Metro will receive payment directly from the hospital for CCT services. Rural/Metro has simultaneously renewed for five years its contract to provide non-emergency ambulance transportation to the center's hospital campuses and treatment facilities. Both contracts began July 1, 2001 and represent a combined value of $6.5 million over five years.
"We are very pleased to provide high-quality critical care transport services to the University of Colorado Health Sciences Center and at the same time expand our role within the Center's medical transportation network," said Jack Brucker, president and chief executive officer of Rural/Metro Corporation. "This is an excellent example of Rural/Metro growing strategically in a service area where we have an established infrastructure and years of proven performance."
Since January, Rural/Metro has entered into 10 multi-year agreements to provide ambulance transportation or specialty fire protection and training services in existing and new service areas. Brucker continued, "The majority of this business speaks directly to our strategy to expand Rural/Metro's presence in healthy and growing markets while at the same time enhancing and strengthening our core operating platform."
These contracts collectively represent an estimated $19.9 million in total revenue over the next five years and include Forum Health System in Youngstown, Ohio; the City of Jeffersontown, Ky.; Mercy Medical Center in Canton, Ohio; Baptist Memorial Healthcare Corporation in Memphis, Tenn.; the Ohio-based American Electric Power Co.; and the Bismarck (North Dakota) Municipal Airport.
University of Colorado Hospital (UCH) is the Rocky Mountain region's only academic tertiary care and referral center and has been recognized as one of America's Best Hospitals, according to U.S. News & World Report. Located in Denver, Colo., the hospital is part of the University of Colorado Health Sciences Center campus, one of four campuses in the University of Colorado system.
Under the new CCT agreement, Rural/Metro will provide nurses, respiratory therapists and emergency medical technicians as well as a specially equipped critical-care ambulance and equipment. The specialty critical care transport ambulance will operate under the University LifeLink brand, while other transportation services will be provided under the Rural/Metro name. LifeLink is the hospital's designated patient transport program, which provides for all levels of ground transport services.
Boo Heffner, president of Rural/Metro's West Emergency Services Group, said, "We are very proud of the exceptional services we already provide to the Center and honored to be given the opportunity to expand our role through the critical care transport program. The University of Colorado Health Sciences Center trusts Rural/Metro to deliver high-quality services under their name, and we take that responsibility seriously."
Rural/Metro entered the Denver-area market in 1998 after winning the competitive bid to provide 911 transportation services to the City of Aurora, Colo., through a partnership with the Aurora Fire Department. Since that time, Rural/Metro has grown its position in the region to include ambulance transportation contracts with The Medical Center of Aurora, Centennial Medical Plaza, Spalding Rehabilitation Hospital, Swedish Medical Center, Buckley Air Force Base, Sable-Altura Fire Department, University Hospital, and Airlife. Additionally, Rural/Metro serves the area medical transportation needs of PacifiCare and CIGNA managed care organizations. Rural/Metro also provides back-up service to several area 911 providers, including the cities of Denver, Littleton and Englewood.
Rural/Metro Corporation provides mobile health services, including 911 and non-emergency ambulance transportation, fire protection and other safety-related services to municipal, residential, commercial and industrial customers in more than 400 communities in the United States and Latin America.
Except for the historical information herein, this press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the ability to secure new contracts, retain existing contracts, the success of continued marketing efforts, demand for the Company's services and other factors and risks disclosed in the Company's SEC reports and filings.
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