American Medical Response was formed in February 1992 with the strategic objective of becoming the leading national provider of ambulance services. It set out to achieve this position through acquisition, not by establishing new provider organizations. In August 1992, the company went public and acquired four ambulance service providers. The company has continued its acquisition policy since that time, with a total of seven providers having been acquired through September 1993.
The company now provides emergency prehospital medical care and ambulance services to patients in response to 911 emergency medical calls, and provides nonemergency ambulance service to patients during transfer to and from health care facilities and residences. It also provides nonmedical transport services to the handicapped and elderly. Currently, the company serves more than 6 million people in nine states.
Emergency medical ambulance services are provided per contracts with counties and cities in the service areas. The company responds to life-threatening 911 emergency calls with advanced life support (ALS) ambulance units. These units are staffed with two paramedics or one paramedic and an emergency medical technician (EMT). Basic Life Support (BLS) ambulance services are provided when a patient's medical condition is not life threatening and when patients require a basic level of supervision during medical transfer. These ambulances are equipped with first aid supplies and equipment and two EMT personnel.
The company had 1992 revenues of $106 million and a net pre-tax profit of $9.08 million. Its current ratio is a healthy 2.5 to 1, and it maintains a low level of long-term debt (17.3 percent of capital). A $50 million line of revolving (unsecured) credit is maintained with lenders to refinance certain debt, finance acquisitions and for general working capital purposes. The company generally finances its acquisitions through a combin...