TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: November 16, 2020
SUBJECT:title
Follow-up analysis on rating setting for Resident/Non-Resident Ambulance fees based on Finance Committee discussion of November 12, 2020.
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PURPOSE:
Based on Finance Committee member requests staff has revised the initial analysis and provided alternative rate structures for use in the 2021 Budget. No formal vote is required to enact new rates other than the adoption of the 2021 City of Aurora Budget which will include the revenues for these fees.
BACKGROUND:
On November 12, the Finance Committee reviewed a new rate structure and data base for setting this rate structure. During this review the Committee expressed concern over the resident and non-resident rates being identical, which was the structure from reviewing comparable community data. A second issue of discussion was to analyze the increase of non-resident rates up to the City's cost of service level.
The analysis below and attached addresses these issues. Attachment 1 is a pdf of the 2012 Finance Committee agenda packet for this item.
DISCUSSION:
Fire and Finance Department Staff met with Andres Medical Billing Staff (Andres) to review the following as a follow up to the 11/12/20 Finance Committee discussion
Non-transport fees are currently being charged for supplies, etc. by the City. A large majority of non-transport cases are for resident services and as such staff does not recommend pursuing an adjustment of this fee at this time.
The current average Advanced Life Support (ALS)/ALS2 cost estimate provided to the State of Illinois is $2,271. In discussions with Andres, they noted that many insurance coverages begin to decline ambulance fees above $2,500 as being above usual and customary. Attachment 2 is a worksheet showing a new rate structure with resident fees set at $1,600 on average and non-resident fees set at our cost rate. Attachment 3 is a worksheet showing a lower non-resident rate of $1,900 for ALS service and a resident rate at $1,400, which provides a revenue estimate close to the original estimate provided at the November 12, 2020 Committee
IMPACT STATEMENT:
The change in fee structure will provide a net benefit estimated at $200,000 for users that have been balance billed in the past and increases General Fund revenues by an estimated $1,044,000 all paid from private insurance or Medicare. Not changing this fee structure will result in a budget deficit for the 2021 year of $1.9 million.
RECOMMENDATIONS:
It is recommended that the CFO make the changes as provided in Attachment 3 for resident and non-resident rates.
cc: Finance Committee