Pella considers one-year ambulance transport deal with Pella Regional Health Center; hospital offers $350,000

City staff told the Pella City Council that a proposed one-year agreement with Pella Regional Health Center would secure non-emergency patient transports while addressing the municipal ambulance’s staffing and budget shortfalls.

Under the draft terms described at the meeting, the hospital would pay $350,000 to the city in exchange for prioritized coordination of in-facility transports and a weekday window (8 a.m.–4 p.m.) during which the city would be permitted to operate two concurrent transports. Outside those hours, the city would aim to perform one transport at a time and would document occasions when transports could not be performed because ambulances were needed for 911 responses.

Staff said providing the higher level of transport service would require hiring four full-time paramedics and acquiring a transit ambulance. The additional staff cost was estimated at about $330,000; staff noted the hospital’s payment and changes to staffing and fleet would reduce the city’s net ambulance subsidy over time. Current operational figures presented by staff showed patient-revenue estimates around $770,000 annually, federal grants covering roughly $75,000, and operating costs that create a general-fund contribution of about $1 million in recent years. Staff estimated that with the hospital payment and staffing changes, the annual operational gap for ambulance services would be appreciably reduced.

City administration laid out four options for council direction: authorize immediate hiring and vehicle procurement so staff and equipment are in place before the Jan. 7 formal agreement; delay hiring until after council’s formal vote on Jan. 7; renegotiate the payment amount; or consider ceasing transport services altogether. Several council members and the mayor favored moving quickly (option one) to secure a ready ambulance and staff while staff finalize the formal contract language.

If the council directs staff to proceed, officials said staff will bring a formal agreement back for a recorded vote on Jan. 7, 2025, and will document any missed transports to be shared with Pella Regional. The contract would be structured as a one-year term with the opportunity to renegotiate based on new information about the city’s essential-services tax, contributions from other jurisdictions that benefit from ambulance service, and actual transport volumes.

Next steps: staff will prepare the formal one-year agreement for council consideration and, if approved, proceed with hiring and procurement actions described to the council.