Clifton Heights Council approves $300,000 advance to support new ambulance operator STAT

Clifton Heights Borough Council voted to approve a contract among the borough, the Clifton Heights Fire Company and STAT and to advance $300,000 to the fire company to cover STAT’s startup operating costs.

The move, approved by roll call, authorizes a temporary loan to the fire company with repayment from incoming ambulance billings. The solicitor explained the advance is intended to cover early payroll and other operating expenses while claims and insurer payments (Medicare, Medicaid and private insurers) are processed, which can take several months.

Why it matters: The borough voted to bridge an expected cash-flow gap so STAT can begin providing ambulance staffing after Crozer’s contract ended. Council and counsel said the advance will be secured and that the fire company, not STAT, will control release of funds for STAT’s payroll to reduce risk.

Council discussion and details: The solicitor described the arrangement as an operating advance: “they needed, some type of advance, in order to do the start up,” and said the fire company would receive revenue and repay the $300,000 from those receipts before reverting to the normal revenue-sharing model. The borough will take a security interest in the incoming funds, and the fire company will review STAT’s payroll requests before releasing payments to STAT to avoid handing the full advance directly to the vendor.

The solicitor also noted an earlier vehicle accident involving a STAT ambulance that is now an insurance claim; he said STAT remained in operation during the transition. Councilmembers who moved and seconded the motion and who cast recorded votes approved the contract and the loan; the motion passed by roll call.

What’s next: The contract and loan are subject to final solicitor approval, per the motion, and the borough will monitor revenues and repayments as ambulance billings are received.