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Report shows EMS township reimbursements total more than department's EMS expenses

Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
EMS insurance reimbursements total more than department expenses
While township officials are still reviewing options for EMS services after receiving notice that the city of Hillsboro will no longer be providing coverage after June 30, city officials have communicated that the township EMS runs provided by Hillsboro Fire and Rescue have resulted in a "substantial loss" for the city. However, according to city financial records, the city has made enough money off insurance reimbursements from the township runs to cover expenses for the department.
Hillsboro Safety and Service Director Ralph Holt wrote a letter dated March 23 to Highland County Prosecutor Jim Grandey, the legal council for Hamer, Jackson, Liberty, New Market, Paint, Penn and Washington townships. In that letter, Holt outlined his reasons for a previous communication giving the townships 90 days' notice that fire and EMS services would be cancelled as of June 30.
Holt wrote that Hillsboro's general fund "cannot support the continued EMS services to the townships in 2011."
"After careful consideration, the first step should be cutting services provided outside of the city of Hillsboro," Holt wrote on March 23. "The city of Hillsboro has provided EMS services to the surrounding townships at a substantial loss for many years, and we cannot continue to provide this service without being compensated for the cost incurred. Yes, the city of Hillsboro does bill insurance for runs, but the insurance payments do not cover the cost."
Holt wrote that the city received $273,617.56 in 2010 from insurance companies billed for the runs.
According to the city's 2010 expense reports for EMS, the total amount of expenses and encumbrances for EMS in 2010 was $104,345.91.
That number is how much it takes to run all EMS services, inside and outside the city. Hillsboro Auditor Gary Lewis said the city does not report figures to him regarding whether runs are inside or outside the city limits, so there is not a figure on how much it specifically costs each time the city makes an EMS run to a township.
"In 2010, the city billed $746,835.54 to non-residents of Hillsboro. We received $273,617.56 from insurance and personal payments; this left the city with a loss of $473,217.98, which the citizens of Hillsboro had to absorb," Holt said. 
The city has proposed the following per-run charges for townships:
BLS: $485
ALS1: $836
ALS2: $1,003
Non-transport: $350
Mileage: $11.27 per mile
"If the townships would like to continue EMS services after June 30, 2011, they will need to pay for the runs as shown above," Holt wrote.
"It is not the city's intent to double-bill townships or their residents. We would deduct the insurance and any other payments from the monthly compensation or disburse such payments to the townships, if that can be done in an efficient manner that will ensure the city is fully compensated in a timely manner."
As previously reported in The Highland County Press, the city previously had not included EMS charges in the fire contracts. In May, when the city proposed new contracts to the townships, they included EMS charges. That initial contract proposal to the townships had increases in services between 42 percent and 76.34 percent for the individual townships. The Ohio revised code prohibits levy funds designated to pay for fire services to be used for EMS services. Most of the townships have indicated they will need to take the issue of a separate EMS levy to the voters. The townships submitted a letter to the city, dated Nov. 16, saying they would agree to the 18-percent increase in 2011 for the fire contract only provided, however, that the city of Hillsboro continue to provide EMS services to the townships at no extra charge through, and including, Dec. 31, 2011. Council voted 5-2 to accept the contract, with council members Rod Daniels and Mary Brown Turner voting against it.
"I regret that the financial condition of the city of Hillsboro is such that the city cannot continue to provide EMS services under the present circumstances, but I am sure you can understand that as the county commissioners have had to cut funding to other services throughout the county, the city must do so also," Holt wrote. "Please let me know if you think that the townships would like to continue to receive EMS services from the city of Hillsboro for the period of June 30, 2011 through Dec. 31, 2011, and how compensation will be handled for services rendered."
While township officials are still reviewing options for EMS services after receiving notice that the city of Hillsboro will no longer be providing coverage after June 30, city officials have communicated that the township EMS runs provided by Hillsboro Fire and Rescue have resulted in a "substantial loss" for the city. However, according to city financial records, the city has made enough money off insurance reimbursements from the township runs to cover expenses for the department's EMS coverage.

Hillsboro Safety and Service Director Ralph Holt wrote a letter dated March 23 to Highland County Prosecutor Jim Grandey, the legal council for Hamer, Jackson, Liberty, New Market, Paint, Penn and Washington townships. In that letter, Holt outlined his reasons for a previous communication giving the townships 90 days' notice that fire and EMS services would be cancelled as of June 30.

Holt wrote that Hillsboro's general fund "cannot support the continued EMS services to the townships in 2011."

"After careful consideration, the first step should be cutting services provided outside of the city of Hillsboro," Holt wrote on March 23. "The city of Hillsboro has provided EMS services to the surrounding townships at a substantial loss for many years, and we cannot continue to provide this service without being compensated for the cost incurred. Yes, the city of Hillsboro does bill insurance for runs, but the insurance payments do not cover the cost."

Holt wrote that the city received $273,617.56 in 2010 from insurance companies billed for the runs.

According to the city's 2010 expense reports for EMS, the total amount of expenses and encumbrances for EMS in 2010 was $104,345.91.

That number is how much it takes to run all EMS services, inside and outside the city. Hillsboro Auditor Gary Lewis said the city does not report figures to him regarding whether runs are inside or outside the city limits, so there is not a figure on how much it specifically costs each time the city makes an EMS run to a township.

"In 2010, the city billed $746,835.54 to non-residents of Hillsboro. We received $273,617.56 from insurance and personal payments; this left the city with a loss of $473,217.98, which the citizens of Hillsboro had to absorb," Holt said. 

The city has proposed the following per-run charges for townships:
BLS: $485
ALS1: $836
ALS2: $1,003
Non-transport: $350
Mileage: $11.27 per mile

"If the townships would like to continue EMS services after June 30, 2011, they will need to pay for the runs as shown above," Holt wrote.
"It is not the city's intent to double-bill townships or their residents. We would deduct the insurance and any other payments from the monthly compensation or disburse such payments to the townships, if that can be done in an efficient manner that will ensure the city is fully compensated in a timely manner."

As previously reported in The Highland County Press, the city previously had not included EMS charges in the fire contracts. In May, when the city proposed new contracts to the townships, they included EMS charges. That initial contract proposal to the townships had increases in services between 42 percent and 76.34 percent for the individual townships. The Ohio revised code prohibits levy funds designated to pay for fire services to be used for EMS services. Most of the townships have indicated they will need to take the issue of a separate EMS levy to the voters. The townships submitted a letter to the city, dated Nov. 16, saying they would agree to the 18-percent increase in 2011 for the fire contract only provided, however, that the city of Hillsboro continue to provide EMS services to the townships at no extra charge through, and including, Dec. 31, 2011. Council voted 5-2 to accept the contract, with council members Rod Daniels and Mary Brown Turner voting against it.

"I regret that the financial condition of the city of Hillsboro is such that the city cannot continue to provide EMS services under the present circumstances, but I am sure you can understand that as the county commissioners have had to cut funding to other services throughout the county, the city must do so also," Holt wrote. "Please let me know if you think that the townships would like to continue to receive EMS services from the city of Hillsboro for the period of June 30, 2011 through Dec. 31, 2011, and how compensation will be handled for services rendered."

According to Hillsboro Mayor Dick Zink's state of the city, from Jan. 20, 2010 through Dec. 20, 2010, the EMS runs within the City of Hillsboro totaled 722, while the runs outside the City in the townships totaled 870. Mileage inside the city totaled 2,055 miles. Outside the city, the total mileage was 5,816. 
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