WEST QUINCY, MA, ISSUED AUGUST 16, 2005… Tim Fallon and Peter Racicot learned the work ethic early. Growing up under the tutelage of Ray Fallon of Fallon Ambulance Service, Tim and his step-brother Peter have become the driving force behind the region's largest independent, family-owned ambulance service provider.

Back in the 1980's, Tim's father, James R. Fallon, Jr. or "Ray," as he was known, was president of a limousine and ambulance company, which later grew into Fallon Ambulance Service. As the business grew, he had the two boys, along with their siblings, washing limousines, and later working in the dispatch and in ambulances. Over the years, the two thoroughly learned the business and became friends, as well as brothers. Now, having recently settled into their sleek new headquarters in West Quincy, they still share the duties and responsibilities. But both are working harder than ever to take the family business to the next level.

In February, the company moved from Milton to its new headquarters in Quincy. The move gave the company badly needed space for offices, an ambulance garage and customer parking, which the previous site in Milton lacked. Also, the run-down building in Milton wasn't a place Fallon and Racicot were comfortable bringing customers to. "I don't think it hurts us," says Racicot, Senior Vice President of Business Development, although he admits that he and the others are much happier in the new building.

The relocation to 111 Brook Road in Quincy, formerly the location of New England Steel Tank, can be considered an important step, and not just for Fallon Ambulance. It contributes to the revitalization of an area which had been under-utilized for many years. Fallon and Racicot leased the land and the existing structure for two years, during which time they spent almost $4 million to refurbish it. Today, the new elegant steel and glass structure bears no resemblance to the old building, which was built in the 1940s. The new headquarters consists of 43,000 square feet of space, including 30,000 square feet of garage space for the fleet of ambulances. The remaining 13,000 square feet on the second floor is office space and is accessed through a stunning glass lobby. Fallon Ambulance Service also owns another building in North Quincy - 5,800 square feet at 146 Hancock Street, which serves as a satellite location.

$6 Million Investment in Quincy

The Fallon's investment in the City of Quincy is around $6 million, which will generate significant benefits to the city in the form of property tax revenue. But Fallon will benefit, too. Under the Economic Target Area Grant, which encourages companies to build in certain areas, the Quincy Town Council qualified Fallon for tax incentives. According to Racicot, the tax break will save them roughly $400,000 to $500,000 over the next 15 to 20 years in local property and Massachusetts state income taxes.

When Fallon, now President and CEO, and Racicot were looking for financing, they didn't have very far to look. A few years ago, Racicot was a Board member of the South Shore Chamber of Commerce, and was familiar with its affiliate, the South Shore Economic Development Corporation.

An agent of Small Business Administration, the SSEDC provides growing businesses with long-term, fixed-rate financing for assets, such as land and buildings. As a 504 Certified Development Company, the non-profit SSEDC was created to enhance economic development throughout Massachusetts, and works with the SBA and private-sector lenders to provide financing to small businesses. Citizen's Bank had also recommended that the brothers look in the SSEDC for partial financing, which would enable them to get the best package possible. "Citizens decided to research the SSEDC and they came up with something that made better financial sense for us," says Racicot.

A Long History

Fallon Ambulance's history goes back to 1936, when Tim's grandfather, James R. Fallon Sr., started his limousine and ambulance service. Almost 50 years later in 1985, the company's biggest accounts were funeral homes. After losing a few large accounts they couldn't replace, the Fallons knew some changes needed to be made. Armed with a strong knowledge of the transportation business, Ray decided to concentrate on ambulance service. His decision proved to be a sound one, and by 1987, Fallon Ambulance Service was born.

Initially, most of the business was transferring patients from hospitals to nursing homes, and providing wheelchair van service. All that changed in 1991 when the company was awarded a 9-1-1 contract with the town of Milton. Today, 9-1-1 service is a major part of the business, and the company has municipal contracts with Milton, Quincy, Brookline, Braintree, Weymouth and Dedham to provide 9-1-1 service to those communities. Fallon also provides primary backup service to Boston, Randolph, Hull and Norwell, as well as medical transportation for nursing homes, hospitals and HMO's, throughout the greater Boston area. Employing around 475 people, Fallon receives roughly 1,000 calls a day, and dispatches its 117 vehicles to meet them.

Now, Tim Fallon and Peter Racicot have found that change seems to be the operative word in the ambulance business, and they have come to expect and accept it. "The industry in general has come a long way since 1971 or '72," Racicot says. "All you needed back then was a CPR card." Today, the requirements are much tougher, and stricter government regulations continue to improve the quality of service.

Some changes have been harder to deal with than others. Around 1997, several of their independent competitors were bought by much larger companies. With consolidation rampant, the Fallons started to wonder if they could survive. Ray's philosophy had always stressed compassion and taking great care with the people they transported, and he realized this mind-set was also their strong suit. He decided to continue to focus on what they did best - being responsible and compassionate, and treating their customers well. That philosophy enabled the company to not only survive in the face of new competition, but to grow, and has continued to guide and influence Fallon policies to this day. Peter Racicot sums it up this way, "If you continue to focus on that and not get distracted by the complexities of the business, you will be successful."

Other challenges have yet to be successfully dealt with. For example, the federal Balanced Budget Act of 1997 was meant to reform the health care industry, but it ended up making it much more difficult for ambulance companies to get reimbursed for services provided to Medicaid and Medicare patients. Racicot says their struggles with Medicaid and Medicare are similar to those faced by hospitals, and they have seen reductions in reimbursement over the last four years. Even now, he says, they have to fight to get reimbursed at cost. When an ambulance crew arrives at the scene with an ambulance, they are not in a position to say "no," he explains. They have to take care of the patient.

Racicot attributes other problems to the state legislature. "We get rate increases approved at budget time, but they don't get funded," he says. He believes that ambulance services are considered a lower priority than hospitals or nursing homes. He and his brother work aggressively with the local trade group, the Massachusetts Ambulance Association, to try and rectify this and to help ambulance service become recognized as a necessary component of health care. Besides, he notes, if sick people can't get to the hospital because ambulances aren't funded, they become sicker, and more expensive to treat.

Being at the helm of a growing family-owned business isn't always easy. When asked if the family members working there get along and agree on most things, Racicot laughs. He claims they have their good days and bad days, and admits there have been a few times when "it's like a sandlot," he says. "But it's a blessing, too."

Source: "Fallon Ambulance: A Company on the Move," Annette Varnier, Waves, Summer 2005