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Paladin Southland operates under 'Emergystat'
28
Jan '08
Paladin Holdings Inc releases Southland update regarding cessation of all ambulance operations. Southland operates under the trade name "Emergystat."

As of 12:00 AM CST on January 23, 2008, Southland's professional and liability insurance was cancelled due to the Company's inability to make a required payment in the amount of $182,000.

As a result of this, Southland suspended all ambulance operations in Mississippi, Alabama, Georgia, Tennessee, Virginia and Florida. Southland's license to operate in these states has been suspended pending resolution of this matter.

Southland worked with the various State Emergency Medical Services offices for a transition of services to other existing providers.

In an effort to preserve patient care and prevent a catastrophic disruption in service, Southland volunteered to its competitors, the use of the Company trucks, supplies, and other resources including dispatch to the other providers on a temporary basis.

As well as, many of the Company's employees were transferred to competitors' payroll at midnight to assure continuity.
Several activities contributed to this problem.

The successful efforts by GE Capital to block payments of mandatory services provided to Sulligent, a subsidiary of Southland, which included: dispatch, billing, and other required services reduced cash flow by an estimated $300,000.

Instead of being available on an earned basis, this approximate $300,000 set idle in Sulligent Cash Account. Additionally, Southland was notified on the cancellation date, by the processor for Medicare payments, that their system flaws caused weekly payments to be suspended and as a consequence Southland had not received payment since January 4, 2008.


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