MULLICA’S HIDDEN AMBULANCE REPORT (Cont’... VII. This the previous section posted here posed 8 options...now the report evaluates the costs of each of these eight options...we start with the first 3 options)

VIII. ANALYSIS

PAID SQUAD; NON-BILLING TO RETAIN VOLUNTEER STATUS OR PAID SQUAD: BILLING FOR SERVICES

In addressing the concern of shortage of volunteers, the committee investigated the possibility of hiring professional, paid emergency medical technicians. Research revealed the average base salary in the area was approximately $25,000 ($12.00/hr). Benefits, taxes insurance and various related employment costs increases the cost of each EMT to approximately $42,500 per employee. The committee estimated, at a minimum, 10 people would need to be hired to cover 4 shifts, bringing the total annual salaries and wages costs to $425,000. Hiring only 5 people and supplementing with volunteers entails an approximate cost of $212,500. These salaries and benefits costs would be in addition to the annual operating costs detailed in the preceding section, and do not take into account future capital investment.

In conjunction with the above analysis, the committee investigated the possibility of the township billing for services. The average payment received for a basic ambulance call is $330. At this rate, the township would need to respond, bill and collect payment for a minimum of 1,068 to 1,700 calls, depending on the composition of the rescue department (all paid, or supplemented with volunteers). Factoring in uncollectible receivables, and the reduced reimbursement for Medicare and Medicaid would increase the number of calls required for “break even” even further.

REORGANIZE EXISTING SQUAD AND BILL FOR SERVICES: WITH OR WITHOUT SUPPLEMENTING VOLUNTEERS WITH PAID

Having the existing rescue squad bill for services was also considered. The squad would need to incorporate as a non-profit, and receive licensure from the Department of Health. Numerous, more stringent regulations and requirements would be necessitated to effect this change. It would require an increase in administrative duties and costs, and would most likely involve hiring an executive director with the ability, experience and time to oversee and manage the daily activities of the squad. Again, some of the same problems were identified, namely the lack of volunteer coverage during the day, and the response time during the evening and weekend hours.

Due to the complexity and expense of billing for services and hiring or supplementing the rescue squad with paid EMTs, the committee does not feel any of these options discussed above would be biable for the Township at this time.

CONTRACT WITH AN OUTSIDE VENDOR

The commitee also researched the feasibility of bidding out rescue services. The committee contacted two vendors, Monoc and AtlantiCare, and area municipalities that are using outside vendors. Anecdotal evidence suggests a higher satisfaction rating was given for services provided by AtlantiCare. Preliminary, estimated rate quotes ranged from $0.00 per month to $18,000 per month. The attractiveness of the municipality for the perspective of growing the business and increasing a customer base is a major factor driving pricing. Those areas and municipalities that have the greatest potential or growth are those that are receiving very attractive pricing structures. At this time, Mullica is not very attractive to vendors - the call volume is not significant enough to warrant any type of investment by an outside vendor.