FARMINGTON – Franklin Memorial Hospital unveiled its plan Monday to consolidate its five ambulance services into one for greater efficiency and savings.

The new name will be NorthStar Emergency Medical Services.

FMH President Richard Batt said lower state and federal reimbursement rates and higher costs of operation in rural areas led to the proposal, which would allow one set of policies and procedures, one governance structure and one type of contract with area towns. He said he foresees some immediate actions that are expected to reduce expenses by $125,000 per year for the service.

The five services are LifeStar in Farmington, Community Emergency Services in Livermore, AMPS in Phillips, Sugarloaf Ambulance and Rescue in Carrabassett Valley and Rangeley Ambulance.

The hospital will implement the plan, if approved by towns and municipalities, on July 1, 2005.

Under the plan, the number of ambulance stations would drop from five to four by eliminating a “costly and underutilized site” in the Phillips and Avon region, Batt said. Before that, he said, the first-responder program would be built up.

Officials will also discuss moving one of three ambulances on duty during the day at the LifeStar base to a site in northern Farmington and study moving the Farmington ambulance base to northern Farmington, Batt said.

The hospital does not plan to make money on the service, Batt said, but neither does it plan to run a deficit.

Hospital officials earlier this fall passed out rebate checks with a combined total of $77,595 to 10 towns in the LifeStar ambulance service area and three towns in the Community Emergency Services ambulance.

Officials also passed out bills totaling $122,577 for the northern tier services. Batt said those deficits would be forgiven if those towns agree to the new contract.

If the towns approve the deal, new contracts with towns would be based on a fixed amount of subsidy, and towns would not be expected to shoulder the risk of any loss during the contract period.

New contracts with towns would be for two years initially, with subsequent one-year contracts adjusted for medical inflation, Batt said.

The projected subsidies for incorporated towns listed in an information packet range from $2,500 in Weld to $116,600 in Rangeley for fiscal year 2006.

The hospital proposes to buy Rangeley’s two ambulances and contract with Rangeley to use the municipal vehicle station and directly contract with the towns and plantations that Rangeley serves.

Batt said the hospital board has agreed to amend its bylaws to include a 15-member NorthStar advisory board to review and make recommendations about policy and financial issues.

All existing emergency medical service staff would keep their jobs but some might be reassigned or see shift changes, and some people on call would be called less frequently, Batt said.

The new emergency medical service director, David Robie of Madrid Township, would work with staff to maintain and improve morale and team satisfaction, streamline operations and efficiencies, and expand the role of ambulance crews in assisting local towns they serve.

The hospital plans to explore options of joint buying with other ambulance services in an effort to reduce expenses. It also plans to remove a third Sugarloaf ambulance from service.