Ambulance rate hikes are rejected

Board calls proposed increases too drastic

The Del Norte County Board of Supervisors denied a request Tuesday by Del Norte Ambulance, Inc. to raise rates by 50 percent.

This was the second time the ambulance company brought the issue before the board, with the increase first proposed June 8.

Supervisor and Chairman Gerry Hemmingsen said the proposed increase was too drastic. 

“A 50 percent increase I think is very difficult without seeing some additional financial information,” Hemmingsen said.

Ron Sandler, president of Del Norte Ambulance, said he was disappointed and confused by the supervisors’ decision. 

“We thought we’d gotten them the information they wanted. It appears we didn’t,” Sandler said. 

Sandler’s company gave the board a list of communities with similar ambulance services and the costs associated with those services.

However, Supervisor David Finigan said the decision merits additional inquiry.   

“I think there should be some supporting documentation,” Finigan said. “Maybe raising the rates is not the only answer.”

Del Norte Ambulance proposed charging $1,020 for basic life support services and $1,563 for advanced life support, as opposed to the current rates of $680 and $1,042.   

The suggested increases are a result of low Medi-Cal and Medicare reimbursement rates and low reimbursement rates from calls to Pelican Bay State Prison, according to Sandler.

Supervisors raised the question of whether the ambulance company still wants to serve Pelican Bay State Prison. Sandler said his company wants to do business with them.

“It’s still an income,” Sandler said. “But we’d like them to pay us a reasonable rate.”

The prison is restricted as to how much it can pay for ambulance services under a state law passed in 2009. The maximum amount the prison can  pay for services is 120 percent of Medicare rates, according to prison representatives. 

Currently, Pelican Bay reimburses the ambulance company at 100 percent of the Medicare amount. Prison representatives said in order to receive the 120 percent rate, the ambulance company would have to sign a contract with the prison.

Sandler said the standard contract is for two years and would only increase ambulance revenues by $10,000 a year.  

“The 120 percent rate is just a break even for us,” Sandler said.

California Department of Corrections and Rehabilitation spokesperson Liz Kanter said previous discussions with the prison did not reveal a desire to enter into a contract. 

Sandler said signing a contract might limit the company’s ability to barter with the prison over the rates in the future.  

“Once you sign that (contract), we have no chance to negotiate with them,” Sandler said.   

The supervisors directed Del Norte Ambulance representatives to meet with county staff to discuss alternative rate increases.