Ambulance Services

The US ambulance services industry includes about 4,000 firms with combined annual revenue of about $9 billion. Major companies are AMR (American Medical Response, owned by Emergency Medical Services) and Rural/Metro Corporation. The industry is fragmented: the 50 largest companies generate almost half of the industry's total annual revenue.

For more information on fire department and public-based ambulance services see the First Research Municipal Governments profile; for hospital-based ambulance services refer to the Hospitals profile; and for nonmedical transportation services for the disabled or elderly, see the profiles for the Healthcare Sector or Nursing Homes and Assisted Living.

COMPETITIVE LANDSCAPE

Increases in immigration, birth rates, morbidity rates, and life expectancies, as well as emergency medical events, drive demand for ambulance services. The profitability of individual companies depends on quick and effective response and operational efficiency. Large companies have advantages of scale in contract negotiations, service capabilities, technology, and geographic coverage. Small companies can compete effectively by providing superior service in specific locales. The industry is labor intensive: average annual revenue per worker is a relatively low $65,000.

Predominant competitors for ambulance services companies are fire departments (which have a 37 percent share of the market), government agencies (21 percent), and hospitals (9 percent).

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry's major service is medical transport of patients, which includes pre- and post-hospital medical transportation, emergency (911) and non-emergency transports, and air ambulance services. Emergency calls often require medical ...