Chatham-Kent council has approved a $2.325-million adjustment to its existing land ambulance contract with Medavie EMS to ensure emergency medical services continue through the end of 2029.
The economic adjustment was approved following negotiations after Medavie EMS notified the municipality that it intended to invoke a contract provision allowing the operator to terminate the agreement due to circumstances beyond its reasonable control.
The current contract with Medavie EMS, valued at $82.9 million, was awarded by council in December 2024 and covers the period from Jan. 1, 2025, to Dec. 31, 2029.
According to a report presented to council, significant increases in employee-related wage costs and long-term disability expenses prompted the service provider to seek relief under the agreement. Municipal administration said those rising costs have been experienced across Ontario’s ambulance sector, including in municipally operated services.
Council approved funding the 2026 portion of the adjustment, estimated at $225,000, through the municipality’s Labour Relations Reserve. The remaining costs will be referred to the 2027 budget update and the 2028-31 multi-year budget process for consideration.
As the designated delivery agent for land ambulance services in Chatham-Kent, the municipality is responsible for ensuring ambulance service is provided throughout the region.
The report noted that recent requests for proposals have not attracted other bidders and recommended that administration begin preparing for the next procurement process well in advance of the current contract’s expiry.
Council directed administration to begin planning in 2027 for a request for proposals process, including the development of an internal municipal bid that would be evaluated alongside any external submissions. The work is intended to ensure the municipality is prepared to bring the service in-house by Jan. 1, 2030, if it proves to be the more affordable option.
Council also authorized the mayor and clerk to sign the necessary agreements related to the contract adjustment.
The municipality noted that land ambulance services are funded equally by the Province of Ontario and municipalities, although provincial contributions typically lag by one year, requiring the municipality to initially absorb the full cost of increases before reimbursement.
