County board approves loan program to keep ambulance service available

Posted 5/9/01

County board approves loan program to keep ambulance service available

By MaryHelen Swanson

On May 2, the Chisago County Commissioners unanimously approved a memorandum of understanding with Lakes Region Emergency Medical Services saying the county can enter into a contract with ambulance service providers to provide interest-free loans for two years, if needed.

With the threat of reduced funding from Medicare, due to the decision of the federal government under the Balanced Budget Act of 1997, local ambulance providers may have to cut back services and this has caused much concern among the county residents.

The county board, being sympathetic to the citizens, is trying to resolve the issue, temporarily, hoping that the federal government will restore the medicare reimbursement rates.

To address growing concerns, especially among the residents in the Rush City area, Rep. Loren Jennings proposed legislation that would allow Chisago County to place a fee on each parcel to help compensate for the lost revenue. But the commissioners want to address this concern without state mandate.

According to Commissioner Tom Delaney, the reasons are two-fold for establishing this ìloanî program: because the ambulance service needs the countyís moral support and to send a message to the Legislature that the county doesnít need help.

Commissioner Bob Vande Kamp said he wished the area hospital would add support to this program.

The memorandum stipulates:

In the event that the medicare reimbursement rates are reduced as of July 1, 2001 or a subsequent date no later than July 1, 2002, and in the event that the reduction of revenues causes the EMS Providers to expend their reserve funds beyond a ìfiscally prudent amountî to be mutually agreed upon by the parties, the county will provide a no-interest loan up to $100,000 per year for a two-year period.
The EMS Provider agrees to repay any and all loans to the County over a five-year period beginning 12 months after the second yearís loan is granted, unless the medicate reimbursement rate is restored by the federal government. The stipulation also says that the County may forgive the loan partially or in its entirety in the event there is some other revenue loss that may cause the EMS provider to be unable to operate its services or repay the loan.

The EMS Provider will review annually with the County its financial records and authorizes periodic inspection by the County or its agent.
And the EMS provider will guarantee ambulance service throughout the county, whether it is the primary or secondary state-authorized licensee.

Two commissioners and Administrator Jim Thoreen will meet with the EMS Provider to determine the financial ìtriggerî for the enactment of this loan program.