Palmhurst extends Skyline ambulance contract despite bankruptcy filing

The Palmhurst City Council voted to extend its contract with Skyline EMS in September for at least two more years, following the ambulance provider’s bankruptcy filing this summer.

Palmhurst is one of two clients the company listed in its filings, along with contracts that service parts of Hidalgo and Jim Hogg counties.

Skyline filed for bankruptcy in July, reporting more than $4.2 million in debt in August, most of it owed to the Internal Revenue Service.

However, the company said it anticipates its revenues will allow it to successfully reorganize its finances during bankruptcy without any interruption in services.

If anyone was concerned about the bankruptcy at Palmhurst’s City Council meeting last month, they didn’t speak up.

Police Chief Michael A. Vela said the city has been content with the company’s services.

“I know prior we did some numbers. They’re doing pretty good for now,” he said.

Palmhurst pays Skyline $12,000 a month for ambulance services and has done so since at least 2023.

Vela said he thinks the city’s getting a fair deal.

“The good thing is that price hasn’t changed — especially right now, since everything’s going up,” he said. “I think we’re doing pretty good right now.”