LifeFlight of Maine brings aviation management in-house
The move follows the end of a contract with previous service provider Seven Bar Aviation, and is expected to offer significant reductions in costs for the non-profit provider
US air ambulance provider LifeFlight of Maine has brought its aviation management services in-house, after ending its contract with a third party firm due to rapidly increasing costs.
From April 2022, the non-profit provider will manage its operations through an internal aviation team, and will operate under its own federal air operations certification. The services had previously previously provided by the Dallas-based Seven Bar Aviation.
The change, which reportedly took three years of preparation, is intended to insulate Maine citizens from excessive air ambulance charges, and will end LifeFlight’s reliance on external service providers who the provider says have pushed prices for patients and insurers far above the price level of its competitors.
The change could result in savings of up to $887,000 per year
According to Tom Judge, LifeFlight’s Executive Director: “The consolidation drive in the industry has been driving up costs for us and for our patients. If we can keep ourselves lean we can redirect resources to the pointy end of our operations and improve the services to patients.”
Judge estimated that the change could offer savings within the region of between US$760,000 and $887,000 per year, or around ten per cent of its aviation budget.
“Everybody’s pay structure was different, their benefits were different, their retirement options were different, and the way they interpreted how to apply certain regulations was different,” said David Burr, LifeFlight’s Director of Aviation Operations. “We couldn’t have maintained our efficiency and leanness and effectiveness and our commitment to having the lowest charges if we had continued to pay hundreds of thousands of dollars in management costs.”
“Either we would have had to make that up by increasing charges to patients or via additional philanthropy, and neither of that was acceptable for us,” he added.
Burr also said that the change would provide an opportunity to enhance the aviation crew’s regional expertise. He explained that while many of those employed by third party aviation management firms were generally excellent, many of them were used to the hotter climate of southern US states, and sometimes lacked understanding of the technical and operational needs of Maine’s colder climate.