There is a growing concern in Minnesota and across the country regarding the affordability of EMS services. The financial challenges faced by Fergus Falls in Minnesota serve as a clear example of how this issue has a direct impact on local communities.
Ringdahl EMS, a longstanding provider of ambulance services in Minnesota, has issued a plea for support to Fergus Falls and cities as they navigate the path to financial sustainability. The company is seeking assistance from local communities to maintain crucial ambulance responses until a self-sufficient system can be established.
Minnesota Grapples With Paying EMS
EMS agencies receive funding from two main sources: fees for the services they provide and public funding, which comes from tax subsidies.
If the expenses of running the system outweigh the income generated from service delivery, it is likely that a tax subsidy will be necessary.
EMS reimbursement is sourced from various channels, including Medicare, Medicaid, commercial insurance, or directly from the patient.
The payer mix refers to the percentage of patients in your community who have insurance coverage and the specific type of insurance they have.
The reimbursement rates for Medicare often fall below the actual cost of providing the service, while Medicaid's rates are even lower than those of Medicare. Commercial insurers are typically obligated to cover a portion of the usual and customary rate (UCR), however, the insurer has the authority to determine the UCR, creating a situation where the insurer has control over the outcome.
Expressing concern over the ability to meet community expectations, Tollef Ringdahl, a representative of Ringdahl EMS, emphasized the proud history of providing exceptional ambulance services since 1967. However, the current financial landscape has forced tough decisions, potentially leading to service reductions to ensure the company's survival.
Ringdahl EMS has reached out to cities and townships in the county, seeking assistance from taxpayers to ensure the continued operation of their vital 911 and hospital transfer services.
Gov. Walz Urges Supplementa Budget to Pay EMS
In response to the dilemma, Minnesota Governor Tim Walz suggested a supplemental budget of $226 million to pay emergency medical services in rural areas, improve water quality, and provide assistance to children.
Walz said that the supplementary addresses "pressing" needs across the state.
"Our supplemental budget delivers on the basic things that good government should provide, including funding for emergency medical services, water quality, and critical infrastructure," Walz said.
The budget allocates $16 million to provide support for ambulance services across the state, addressing the significant challenges they have encountered in terms of funding and personnel shortages.
The budget focuses on allocating funds to organizations that support individuals affected by crime, while also providing resources to help prevent relapses and overdoses among those who have been released from correctional facilities.
