Air Methods
Provides emergency medical transportation and air ambulance services.
PE-OWNED
Acquired by KKR2017-05-01
What Made It Great
Critical air medical transport with nationwide coverage
What PE Will Likely Do
Reduction in the number of experienced and specialized emergency medical flight crews, replaced with less qualified staff
Deferment of maintenance and replacement of aging air ambulance aircraft, leading to more frequent mechanical issues and delays
Closure of less profitable air ambulance bases, reducing geographic coverage and increasing response times for emergency medical transport
Aggressive billing practices to maximize reimbursement, including potential upcoding of medical procedures and diagnoses
Expected Timeline
“0 to 6 months months”
Announcements of 'optimization' programs and leadership changes, but no visible impact on service quality initially
“6 to 12 months months”
Staffing cuts begin, with experienced flight nurses and paramedics replaced by less qualified personnel to reduce labor costs
“12 to 24 months months”
Patients begin to experience longer wait times for air ambulance dispatch, more mechanical issues with aircraft, and potentially poorer medical outcomes due to less experienced crews
“24 to 36 months months”
Closure of air ambulance bases in less profitable regions, leading to significant gaps in emergency medical transport coverage across the country. Quality scandals may emerge due to medical errors or patient safety issues.
“36+ months months”
Potential bankruptcy or fire sale to another operator as the cost-cutting measures severely degrade the quality and reliability of the air ambulance service
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Advocate for regulations and oversight to protect the quality of critical air medical transport services
Closely monitor any changes in response times, aircraft maintenance, and staffing at your local air ambulance provider
Be aware of potential billing issues and advocate for fair and transparent medical coding practices
Alternatives
Community-focused healthcare
Integrated managed care consortium