Tinley Park receives huge bill from previous EMS provider (more)

Excerpts from ChicagoTribune.com:

A legal battle has erupted between the village of Tinley Park and its former ambulance provider, Trace Ambulance, over a $492,000 invoice that the company claims the village owes. The dispute has been ongoing since 2014, when Tinley Park decided to switch ambulance providers, ending its long-term contract with Trace in favor of New Lenox-based Kurtz Ambulance.

Trace Ambulance, which had served the village for decades, submitted the bill last year, but Tinley officials have consistently denied any obligation to pay. According to Christopher Vandenberg, president of Trace, the company made multiple attempts to negotiate with the village, only to be met with refusal. “Unfortunately, because the Village was unwilling to even acknowledge that any amounts were owed, we were left with no choice but to initiate the litigation to recover the amounts we were contractually due,” he said in an email.

Tinley’s Village Manager, Dave Niemeyer, confirmed that the village is “vigorously defending this claim” but did not provide further details. The case, filed in Will County earlier this year, will now move forward with a scheduled status hearing on January 5. The lawsuit seeks a court ruling that Tinley is obligated to compensate Trace under their contract, though it does not specify the exact amount. However, the $492,000 figure is what Trace billed the village before the contract ended.

Vandenberg also noted that his relative, Jake Vandenberg, a village board trustee, has no financial interest in the company and has not been involved in any discussions regarding the litigation. Despite the legal action, Vandenberg expressed hope for a more amicable resolution, saying, “I still hope that we can avoid the expense of prolonged litigation.”

The conflict began after Tinley awarded Kurtz Ambulance a $3.7 million contract through July 2018. The village had sought new ambulance services in 2014, with Trace and Kurtz as the two main bidders. Trace argued that their old contract included a clause requiring the village to pay $200 per hour for additional ambulance usage beyond the agreed number. After the switch, Trace calculated these extra hours from May 2010 and sent a final invoice totaling $492,206.

When the village received the bill, it was caught off guard. Tinley Park Treasurer Brad Bettenhausen responded by stating that the charges were “unexpected,” noting that there had been no prior notice or billing during the contract period. “It would be expected that had such charges arisen, they would have been brought to the village’s attention and billed at regular intervals,” he wrote.

The decision to switch vendors was not without controversy. At a public safety meeting in May 2014, village officials revealed that Kurtz’s bid was significantly lower than Trace’s. Trace executives warned that changing providers could pose risks, especially given the evolving nature of the healthcare industry. Ultimately, Tinley officials cited cost as the main reason for the switch, as Trace’s proposal was 21% more expensive than Kurtz’s.

Trace has a long history with Tinley Park, having provided ambulance services since 1979, with only a brief interruption in the 1990s. The current legal dispute highlights the complex relationship between local governments and service providers, and how financial disagreements can escalate into formal legal battles.

Thanks, Dan

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