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Committee reviews $80,000 appropriation request to cover higher EMS contract costs
Summary
Emergency Operations staff reported an $80,000 request from the non-area-wide fund to balance EMS contract costs; staff described contract formula and collection efforts, and committee members raised questions about out-of-state billing and fund balances. No committee vote was recorded in the transcript.
The Fairbanks North Star Borough Finance Committee heard a staff report on an ordinance asking to appropriate $80,000 from the non-area-wide fund to cover increased emergency medical services (EMS) contract costs.
Emergency Operations staff members Mr. Miller and Mr. Butcher told the committee the $80,000 is needed because contract amounts for EMS delivery increased after the FY25 budget was prepared. "So when we came before this body for the budget, there were some changes that happened after the budget ... that increased cost for the delivery of EMS in our borough. It's $80,000," Mr. Miller said.
Assembly members asked why the additional money was needed and sought clarity on what the contract covered. Mr. Miller explained the borough has independent-contractor relationships with fire chiefs who deliver EMS; contract calculations use a formula that includes a base ambulance rate and components such as a per-call rate, per-mile rate, address point and population factors.
Members also asked how much of EMS billing is for non-residents. Staff said a rough review from 2021'23 showed less than 10% of billed EMS calls had addresses outside Alaska, and the borough has increased efforts to recoup costs from out-of-state Medicare, Medicaid and TRICARE payers. The administration said the Supplemental Emergency Medical Transport program (S-EMT), a federally sanctioned program states opt into, had reimbursed the borough roughly $300,000 recently for FY22, though payments are several years delayed.
Committee members requested the current balance of the non-area-wide fund; staff said it is roughly $3.5 million. The transcript records the staff report and questions but does not record a motion or vote on the ordinance in the provided transcript.
