Implications to Consider in the Privatization of the City of Flint Ambulance Service

Abstract

With decreased revenues and increased or constant demands for services state and local government units have examined a wide range of privatization alternatives. The most common of these alternatives has been the use of contracting for services. Contracting of services has been an alternative that has been utilized by an increasing percentage of municipalities as revenues have decreased. Data obtained from the City of Flint and various other sources were compared to illustrate implications that must be considered if a privatization effort of the municipal ambulance service was to be pursued. Implications that were examined concern economic factors, quality of service issues, social concerns, union and labor implications, legal issues, and political effects. The results of the examination indicate that 1) wage and fringe benefit packages offered to private sector employees were generally less than those received by comparable public employees; 2) competition would increase efficiency in the ambulance service; 3) the impact on minority individuals would be proportionate to the impact on the total work force; 4) labor and union negotiation is mandatory for an effort to succeed; 5) legal issues must be explored thoroughly as they pertain to the situation; and 6) political factors have an immense impact on the structure of the EMS service.