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Air Methods Signs Contract Amendment for Expanded Flight Services
DENVER, Sept. 23 /PRNewswire/ -- Air Methods Corporation (Nasdaq: AIRM) announces the signing of a contract amendment to provide expanded emergency air transportation management and services for Mercy Medical Center, Des Moines, Iowa.
In addition to the Bell 222U currently serving Mercy Air Life in Des Moines, a Bell 206L-1 will commence operations in November 1999 under the terms of the amended contract with Air Methods. The Air Methods' aircraft will provide Mercy Health Network with back-up capabilities to Mercy's operations in Des Moines as well as providing for the air medical transportation needs of North Iowa Mercy in Mason City. The amendment is effective for the entire period of Air Methods' already existing long-term contract. Start-up expenses are expected to be approximately $50,000 and should be incurred mostly in the fourth quarter. New contracts awarded to Air Methods' Air Medical Services Division in FY99 year-to-date, including this amendment, should result in increased annualized revenues in excess of $2,500,000.
With this and other recent new contracts, Air Methods' Flight Services Division continues to solidify its position as a leading national provider of emergency air transportation services and management. This contract amendment will increase the number of contract locations with hospitals, hospital systems and consortia to 25 with concentrations in the Midwest, Rocky Mountain and Mid-Atlantic regions. In addition, Air Methods owns Mercy Air Service, Inc., a large community based independent provider serving Southern California and Las Vegas.
Marty Martin, Vice President of Air Medical Services, expressed enthusiasm for this development. "We are delighted to see Mercy Air Life enhance the service which it offers to the State of Iowa. Mercy Air Life has contributed immeasurably to the quality of life for thousands of citizens of Iowa, and we are proud to be a part of that service. Air Methods' reputation for quality service and equipment, combined with our strong financial condition, has enabled us to become a clear leader in the flight services market." |
