Sydney hospital asks council for letter supporting cost‑based ambulance reimbursement

Jason Pedic, chief executive officer of Sydney Regional Medical Center, asked the council during its March 10 meeting for a letter of support to seek a Centers for Medicare & Medicaid Services (CMS) exemption that would allow the hospital’s ambulance service to qualify for cost‑based reimbursement.

Pedic told the council the ambulance operation loses money on most 9‑1‑1 calls and that qualifying for cost‑based reimbursement could increase funding by “about 2 to $300,000 annually.” He said that 80% of the service’s calls are 9‑1‑1 responses that are reimbursed at a rate well below cost, while long interfacility transfers generate most of the revenue that currently offsets losses.

Pedic outlined a stepped advocacy approach: local support from the city and county, coordination with the state health department, and outreach to the federal delegation before submitting a request to CMS. He also described other funding streams the ambulance service receives, including state‑directed Medicaid payments that the hospital uses to backfill shortfalls.

Council members asked about historical staffing and financial drivers. Pedic said the hospital and partners put an initial $150,000 into operations and that the ambulance LLC began full operations in 2025 after a late‑2024 start. He described ongoing work by an advisory group to explore alternative funding mechanisms that could reduce municipal and hospital subsidies.

The council did not take a formal vote on the letter during the discussion captured in the transcript; Pedic asked whether there were any questions and thanked the council when the exchange concluded.