Ambulance provider debate decided: Falck’s appeal is denied as AMR continues with $112 million contract

The Hawai‘i State Department of Health (DOH) has maintained its decision on ground ambulance services for Kauaʻi and Maui, announcing it will continue with longtime service provider American Medical Response (AMR) and denying the protest of previously selected provider Falck Northwest Corp.

“We are disappointed that the Department of Health ultimately reversed course after initially selecting Falck to provide enhanced emergency medical services to Maui and Kaua‘i counties,” said Troy Hagen, chief commercial officer of Falck USA, in a recent statement.

“Falck continues to stand ready to serve should the DOH call on us. As a foundation-owned healthcare provider, we would bring a fresh perspective, unmatched financial stability, reliable services developed around global best practices, and a deep commitment to delivering the highest quality care to the communities we serve.”

The controversy began in August 2023, after Falck was awarded 3.5-year contracts, totaling roughly $32 million for Kaua‘i and $59 million for Maui to provide ambulance services on both islands.  Both contracts were set to begin on Jan. 1, 2024, and run through June 30, 2027.

However, AMR then protested the DOH’s decision to switch to a new provider citing flaws in the procurement process, leading the department to cancel the contracts and restart its application process. 

Following a renewed procurement, the DOH then changed back to AMR, now doing business as International Life Support Inc., on May 24. 

Falck then filed a notice of protest on May 31, also citing flaws in the procurement process. However, on July 1, the DOH announced it had reviewed the protest and would continue with AMR. 

“Our priority remains ensuring high-quality emergency medical services for the residents and visitors of Kauaʻi and Maui and to continue the current ALS staffing level,” said DOH Director Kenneth Fink in a statement. 

“Both bidders submitted excellent proposals with the differentiating factor being primarily price. I am confident that both would provide high-quality emergency medical services.” 

Despite citing the decision to change back to AMR as primarily a financial one, the awarded amount is over $21 million higher than the previous contracts to Falck, going up to approximately $38 million for Kauaʻi and $74.6 million for Maui. The four-year contracts, totaling over $112 million, are expected to begin on Jan. 1, 2025, and run through Dec. 31, 2028.

Kauai Now received an email response from Speedy Bailey, the regional director for AMR Hawaiʻi, who noted AMR’s extensive history in the state.

“AMR has partnered with Maui and Kaua’i for more than 44 years to build a strong emergency medical services system,” said Bailey.

“We’re excited to continue this partnership and appreciate the due diligence by the Department of Health in choosing a provider. We look forward to providing continuous quality services, working with the State, counties, and others to meet ongoing EMS system needs.”