Medford Ambulance Contract Dispute Leads to Accusations of 'Shakedown' and Provider Change
Richard Raymond, CEO of Armstrong Ambulance, claims his company's 25-year contract with the city of Medford, Massachusetts, ended after he refused a request for a lump sum payment of $450,000. Raymond alleges this request, made by city officials, constituted a 'shakedown' and that fulfilling it would have violated Medicare anti-kickback laws. The city, however, states that Armstrong Ambulance failed to adhere to a contract provision requiring an annual $75,000 payment for the 911 dispatch center, a clause that had been in their agreement since 2017 and renewed in 2022. Medford Mayor Breanna Lungo-Koehn asserts that Armstrong grew too comfortable and was not abiding by the contract terms, leading the city to switch to Cataldo Ambulance Service. The city sought the accumulated $450,000 to fund renovations and upgrades to its 911 dispatch center, estimated to cost over $200,000. 
