The independent budget analyst said the deal makes financial sense — but could also cost the city up to $18 million a year if problems arise
San Diego took control over city ambulance service Monday to improve response times and eliminate financial incentives private ambulance companies have had to reduce service and hours.
Instead of the existing model where Falck USA pays San Diego $9 million a year for the right to charge patients, the city will pay Falck and AMR $64.7 million total to operate ambulances and charge patients itself.Fire Chief Colin Stowell says fundamental changes are necessary to cut ambulance response times, and plans to shift the city to an alliance model used in the Bay Area.
But Patel said the city could lose as much as $18 million a year if problems arise with the state’s new reimbursement model. Fire Chief Colin Stowell said recently that he plans to spend any profits on new programs like nurse triage, telemedicine and street-based interventions for homeless patients. But he said Monday that creating a reserve fund must come first because the city’s profit projections could be off.
covered by Medi-Cal or Medicare, which pay maximum rates for ambulance service that are below city rates. The rate for the most expensive advanced life-support ambulance transports is rising from $2,805 to $2,945 immediately and will increase to $3,151 next July.
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