BY JIMMY LAWTONNorth Country This Week

North Country residents in need of non-emergency medical transports could be without rides May 24 if Medical Answering Services does not reach an agreement with more than a dozen companies.

Medical transport providers in the North Country region say the company, which was awarded the contract to oversee the transportation program for the Department of Health, is not paying enough for the service, which will make longterm operations unsustainable.

A letter addressed to the Syracuse-based company’s President Russ Maxwell gives notice of the intention to strike. 

Frary Transportation based in Ogdensburg has taken the lead role, and has been joined by competitors MacKay-Lawrence Ambulette in Canton and Fox and Murray Medical Transportation in Ogdensburg. Roughly a dozen transportation companies from Plattsburgh all the way to Watertown have joined the effort. 

“As you are aware, Medical Answering Services has not adjusted the reimbursement rates for medical transport services in over twelve years, in line with the increasing costs and demands associated with providing these essential services. Despite our continuous efforts to engage in constructive dialogue and negotiations, we have not seen any meaningful progress or commitment from MAS to address this critical issue,” the letter says. After careful consideration and consultation with our teams, it is with regret that we must inform you that our medical transport business will be forced to go on strike, effective May 24, 2024, if MAS does not take immediate action to raise the reimbursement rates to a fair and sustainable level.”

 In an interview with North Country This Week, Frary Transport Services CEO Ryan Frary and Transportation Director Cassandra Fobare explained that the  current reimbursement rates not only fail to cover the operational costs but also make it nearly impossible to meet wages and benefits demanded by the job market or money necessary for vehicle maintenance, training, and equipment upgrades.

Frary explained that the non-emergency medical transport provides customers in need of medical services with transportation to and from appointments. He said this service is used by thousands in the North Country region with 500-600 transports daily. 

Frary noted that the service has impacted the state's decision to leave Medicaid reimbursement rates at the same level they’ve been since 2012 despite massive inflationary costs, high fuel prices and rising costs of living.

However, he said that Medical Answering Services has made things worse in being awarded a bid in 2022 by the State Department of Health to serve as a brokerage for the program.

He said the company won the bid that was too low to properly pay for the services rendered and is attempting to make up that difference on the backs of the transportation providers who complete the work on the ground level.

He said the transportation groups believe the strike is necessary to ensure that operations can be sustained in the future, because if a more equitable agreement isn’t reached the providers won’t be able to continue operations.

“We understand the impact that a strike can have on the continuity of medical services and the well-being of patients. However, we believe that it is our responsibility to advocate for fair compensation that reflects the value and quality of the services we provide,” the letter says.

Fobare explained that MAS  has the ability to control rates and makes their profitability dependent on keeping these rates unreasonably low.  

“This dangerous business model will cause the collapse of the medical transport industry throughout New York State. Unless action is taken ahead of this date, several companies will be closing their doors,” she said in a prepared statement accompanying the letter.

“The company severely underbid their competition in order to secure the deal and has risked the health of thousands in the process.  New York State medical transport companies have been at risk of financial collapse for some time as reimbursement rates have not increased in over 12 years. Prior to March 1, 2024, MAS received a fixed fee for arranging transportation and they now have a financial stake in the profitability of the transportation program,” the letter says.

Although the strike is being organized specifically by North Country providers, it’s really a statewide issue. A similar strike was held by Westchester County providers and similar strikes are being considered elsewhere downstate.

Frary is hopeful that by joining together Medical Answering Services will come to the table.

“We remain open to further discussions and negotiations to reach a mutually acceptable resolution before the proposed strike date. Our goal is to ensure the uninterrupted delivery of medical transport services while also addressing the financial sustainability of our business,” the letter says.