Industry insiders and market reports said that Rural/Metro Corp. is in a negative financial situation. It is said to have millions of dollars of losses and trying to settle its payables. This week, the company missed an vital bond payment. County officials have been notified and they've already made plans if in case the situation worsens.
The Arizona-based Rural/Metro Corp is a private ambulance service provider in Santa Clara County. Previously a publicly listed company, it was acquired by the Warburg Pincus private equity group in 2011 for around US$450 million.
"The company continues to take action to align our operations and capital structure with the realities of our business. Our Board and management team recently elected not to make the interest payment due on July 15 for our unsecured bonds due in 2019," Rural/Metro Corp said in a press release.
The business was thought to be to be a potentially high-profit venture. There are, however, some key challenges including patients who avoid paying their bills and the low compensation rates from government-funded insurance policies, which often equal less than the a patient's total bill.
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