Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Safety Finance topic
No spam. Unsubscribe anytime.
Cottage Grove flags $4.74 million in ambulance write‑offs; looks to neighboring cities for cost sharing
Summary
Council members discussed $4,742,890 in ambulance billing write‑offs and said Cottage Grove is negotiating cost‑sharing with neighboring jurisdictions to offset Medicare/Medicaid shortfalls.
Council members on April 16 flagged a large amount of ambulance billing the city will write off this year and said they are seeking contributions from neighboring jurisdictions that the city covers under its ambulance service contract.
A council member reported the total write‑offs for ambulance services were $4,742,890, and that roughly $1,359,000 of that amount is attributable to runs in neighboring jurisdictions that Cottage Grove covers. The councilmember named Newport ($567,000), St. Paul Park ($650,000) and Grey Cloud Township ($142,000) as portions of that figure.
The council member said Medicare and Medicaid reimbursement rules cap payments to ambulance providers and that the federal study hoped to revisit the reimbursement formula has been halted. As a result, the city said it faces “pennies on the dollar” reimbursement for many runs and must decide how to distribute the net cost. The council member said two of the three neighboring jurisdictions contacted have been “very receptive” to helping cover some losses and that the city is pursuing a cooperative cost‑sharing approach.
The councilmember emphasized operational concerns if the city were to divest ambulance coverage for another jurisdiction: the city’s staff estimated that an alternative ambulance provider could take 20–30 minutes to respond to incidents in those areas and might not provide the same equipment or capabilities Cottage Grove currently fields. The council said any change to service contracts would be considered through future budget cycles and intergovernmental negotiations, and that the city’s finance director would continue providing updated figures to the council.
No formal action was taken at the meeting on April 16; council members said staff will continue negotiations and report back during the budget process.
