Federal judge sides with cities in antitrust lawsuit brought by ambulance company

A federal judge on Tuesday dismissed a lawsuit brought by an ambulance company alleging a dozen Orange County cities participated in non-competitive business practices by contracting with only a few companies for emergency services.

U.S. District Court Judge Josephine L. Staton sided with the cities, stating that the state favors local oversight of ambulance services.

“The California Legislature has expressly declared that the local provision of emergency medical services, including ambulance services, is critical to the public peace, health, and safety of the state,” Staton wrote.

AmeriCare MedServices, an ambulance service that operates in Orange, Riverside and San Diego counties, filed suit in 2016 against Huntington Beach, Newport Beach, Fountain Valley, Costa Mesa, Laguna Beach, Anaheim, Orange, La Habra, Fullerton, Garden Grove, Buena Park and San Clemente.

The company accused the cities of conspiring to monopolize the market and shut out AmeriCare from winning contracts.

AmeriCare argued in court documents that the cities and their contract ambulance providers were able to raise prices above market levels while providing lower-quality service and slower response times.

Aaron Gott, an attorney representing AmeriCare, said his clients plan to appeal the ruling.

“We look forward having the 9th Circuit [Court] resolve some of the issues,” he said.

Attorneys representing the cities argued that state law permits municipalities to either provide ambulance services or contract with a company of their choice.

Huntington and Newport provide their own ambulance services. Costa Mesa and Fountain Valley contract with Care Ambulance Service. Laguna contracts Doctor’s Ambulance Service.

“The court’s decision recognizes that cities are permitted to oversee the provision of emergency ambulance services within their borders without fear of exposure to antitrust liability, which would be financially crippling to municipalities throughout the state if permitted by the courts,” said James Touchstone, an attorney representing La Habra, Fullerton and Costa Mesa.

hannah.fry@latimes.com

Twitter: @HannahFryTCN