EMS leadership

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proprietor_role.docx

Proprietor

Q: How comfortable are you with the current status of SVA?

A1: I am fine with it. There are long term challenges, but we’re doing fine, for now.

R: Over the next month, three paramedics leave to work for MA EMS and two other paramedics turn in their resignations. The Daily Slumber published an article announcing that MA EMS has leased space proximal to the 300-bed Golden Oldies long term care facility, just 15 minutes to the north. The mechanic who works on your vehicles called to leave you a message that one of your transport units needs a $3,500 transmission rebuild. The Unit is six years old and has 85,000 miles and should be replaced. The Municipal Manager called and made an appointment for Thursday morning. Yes, it’s time to renegotiate that municipal subsidy agreement. What if any steps do you take?

A2: My service is in trouble. I cannot afford to lose paramedics, they are difficult to replace, and it takes too long to wait for them to complete a full training program. Still, there’s no way to compete with a $1 per hour pay increase and an extra week vacation each year. I have too many demands on our service now. The Municipal Manager is almost certainly guaranteed to cut back on the subsidy we’ve been receiving. Last, I have no idea how we are going to modernize our fleet of vehicles. We’re in trouble there, too. Some of those vehicles are going to face major repair needs soon. Last, with narrowing operating margins, our fiscal projections for the long term are miserable. There is no way we can remain competitive with a major company like MA EMS, if – or when – they decide to encroach on our territory. I need to find solutions to all this, and fast! What approaches do you consider to address these challenges?

R1: Think this trough carefully. Weigh all the options. Consider everything strategically.

Assignment:

· List all of the strategic factors

· Provide a likelihood that the approaches considered will be successful

R2: Consider a management consultant. Maybe the Small Business Administration will have a retired CEO who might be willing to take an independent look at our situation and provide some advice. Maybe an EMS graduate student at Slumber Valley University would be willing to come over and help us out with a consultation and maybe a strategic management workshop?

· You find that the Small Business Administration does have a retired CEO with an excellent reputation and business history is available and willing to work as a consultant for a flat fee of $5,000, which will include a full strategic planning workshop, an environmental scan, and a fiscal plan proposal; further, this retired CEO has many political and business connections in the community, including strong relationships with area hospitals, health plan administrators and long term care facility administrators.

R3: I think that I should approach MA EMS and see if they might want to buy us out. Who knows, it’s possible that they’ll not only pay me a fair price, but also hire me to manage the company? What do I have to lose?

You make a “trial balloon” call to the manager at MA EMS. She politely responds that she will pass your request “up the ladder” and get back to you soon. She seems to react quite positively to the overture. She also asks what your valuation of SVA is, and what your initial asking price is? How do you answer her?