TransCare Ambulance Files for Chapter 7 Bankruptcy

by San Antonio Attorney

TransCare Ambulance in New York City informed their employees on Feb. 25, 2016 that the company is “being forced into liquidation under Chapter 7 of the Bankruptcy Code.”

Despite the Chapter 7 bankruptcy, TransCare will render ambulance services in the Putnam County.  In the company’s restructuring plan, Putnam and Dutchess counties were covered but are not part of the bankruptcy claim.

Nancy Montgomery, Philipstown Deputy Supervisor, said that she was in correspondence with Anthony Sutton, the Emergency Services Commissioner, who confirmed that TransCare will maintain its operations it Putnam County.

Sutton addressed the company’s financial difficulties through the County Legislature last July.  Montgomery stated that contingency plans were already organized, allowing the country to have a contract with other ambulance services should TransCare halt its operations in Putnam.

TransCare also runs its operations out of the Philipstown Volunteer Ambulance Corp facility in Cold Spring.

Last Wednesday, TransCare was reported by the news media that they have filed for bankruptcy.  Transcare will halt its ambulance services in Westchester County and New York City.

TransCare is the biggest private-owned ambulance operating in the Mid-Atlantic region and have rendered services to the parts of Long Island, Delaware and some locations in Pennsylvania as well.

Pawling Town, which availed of TransCare’s multi-year contract for ambulance service, was resuming its normal operations on Wednesday, according to David Kelley, Town Supervisor.

Faced with financial troubles due to its facilities in the lower Hudson Valley, the company was not able to pay the wages of their employees twice in the previous summer and suffered immense insurance lapses.  The company accumulated payroll problems along with timing issues with its lender.  TransCare also filed for bankruptcy last 2002, according to court documents.

Charles Strome III, the New Rochelle City Manager, said that the city already terminated the contract with TransCare last January 7.  This was already a danger sign of the ambulance service’s financial status.  As a backup, New Rochelle City holds a 90-day temporary contract with Empress EMS until a more permanent ambulance provider can be found.

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