Restructuring & insolvency lawyer — Private ambulance & medical transport services sector

Mac Mahon Avocats is a Paris business law firm at 33 avenue Mac-Mahon, Paris 17. Its lawyers advise private ambulance & medical transport services businesses on prevention of difficulties, out-of-court procedures, formal insolvency proceedings and distressed disposals under French law. This page sets out the applicable legal framework; it does not constitute legal advice.

Sector scope

Ambulance and light medical vehicle companies, urgent medical transport providers taking part in on-call rotas, conventioned seated patient transport operators, medical goods transport companies and multi-site operating groups.

Sector context

Medical transport is a regulated activity: operating requires approval and vehicle commissioning authorisations issued by the regional health agency, within a theoretical vehicle quota per department. Revenue comes overwhelmingly from health insurance, with payment delays and billing audits that may lead to recovery of overpayments. Costs — fuel, qualified staff, maintenance and renewal of a fleet often lease-financed — are largely fixed. Loss of approval, a billing audit or exclusion from the on-call rota can quickly unbalance cash flow.

Key legal issues

How a matter is handled

  1. Diagnosis: review of available cash, due and payable liabilities, tax and social security instalments and existing security, in order to establish whether cessation of payments is characterised (Art. L. 631-1 Commercial Code).
  2. Choice of procedure: arbitration between confidential out-of-court tools (ad hoc mandate, conciliation) and formal proceedings, in light of the sector's own timetable.
  3. Negotiation: discussions with banks, strategic suppliers, the AGS wage guarantee scheme, the tax authorities and URSSAF, and where relevant before the CCSF.
  4. Implementation: preparation of the filing, representation before the commercial courts, monitoring of the observation period, and preparation of the plan or of the sale.

French procedures at a glance

ProcedureEntry conditionDurationLegal basis
Ad hoc mandateNo cessation of paymentsSet by the court president, renewableArt. L. 611-3 Commercial Code
ConciliationActual or foreseeable difficulties; cessation of payments for 45 days at most4 months + 1 monthArts. L. 611-4 to L. 611-16
SafeguardInsurmountable difficulties, no cessation of paymentsObservation period 6 months, extendable to 12Art. L. 620-1 et seq.
RehabilitationCessation of payments, recovery possibleObservation period up to 18 monthsArt. L. 631-1 et seq.
LiquidationCessation of payments, recovery manifestly impossibleVariable; business continuation 3 months, renewableArt. L. 640-1 et seq.

A declaration of cessation of payments must be filed within 45 days of that state arising, unless a conciliation request is filed within the same period (Art. L. 631-4 of the French Commercial Code).

Frequently asked questions

Is medical transport approval transferred to a purchaser?

Approval is granted by the director general of the regional health agency to a specific operator for authorised vehicles (Arts. L. 6312-2 and L. 6312-4 of the Public Health Code). It does not pass automatically with the business: an acquisition requires a decision of the agency, which must be anticipated in the sale plan timetable.

Can an ambulance company keep operating in rehabilitation proceedings?

Yes, provided approval and authorisations are maintained. The observation period allows the business to continue (Art. L. 631-14 Commercial Code) so that a continuation or sale plan can be assessed, with patient safety and regulatory duties continuing to apply.

How is a health insurance overpayment notice handled?

The fund must file its claim in the proceedings under Art. L. 622-24 Commercial Code; the claim may be disputed before the supervising judge, without prejudice to the remedies available in social security litigation. Staggered repayment may also be sought.

Can lease-financed vehicles be retained?

The ongoing contract may be continued if rentals falling due after the opening judgment are paid (Art. L. 622-13 Commercial Code). Otherwise the lease may be terminated and the vehicles recovered, directly affecting operating capacity and the authorisations used.

Which out-of-court procedures are available?

Ad hoc mandate (Art. L. 611-3) and conciliation (Arts. L. 611-4 et seq. Commercial Code) allow fleet rentals, bank debt and public debt to be renegotiated confidentially before cessation of payments, which must otherwise be declared within 45 days.

Contact

Phone: +33 1 45 03 20 20
Email: accueil@macmahon-avocats.fr
Address: 33 avenue Mac-Mahon, 75017 Paris, France

Other sectors