Financial Crisis Looms Over Local Ambulance Service

During a recent government meeting, officials discussed the financial implications of the ambulance service contract with Riverside, focusing on the potential costs and revenue projections associated with various scenarios. The conversation highlighted the need for a thorough analysis of employee costs, billing rates, and the impact on the village's general fund.

One key point raised was the projected revenue from ambulance calls, with an assumption of 400 calls, which is below the average of the past two years. The discussion included the effects of Wisconsin Act 228, which mandates that Medicaid must pay the same rates as Medicare, potentially increasing revenue from these sources. Riverside currently bills $1,500 for Advanced Life Support (ALS) transport, while an alternative proposal suggested a rate of $1,100.

The meeting also addressed the issue of bad debt, particularly concerning uninsured individuals who are likely to default on their bills. Historical data from Riverside indicated a bad debt level of 28% of calls, which was factored into the financial projections.

Officials noted that the addition of debt service to the levy could result in a property tax increase of approximately 2.7%, equating to about $17.94 for a home assessed at $200,000. The village's general fund has faced significant deficits, with a reported shortfall of $500,000 in the last budget, necessitating the use of reserve funds.

The analysis presented included various scenarios, such as the financial impact of billing at Riverside's rates versus the proposed rates, and the potential costs associated with hiring full-time EMTs. The discussion underscored the complexity of balancing service costs with the need to maintain financial stability within the village.

Ultimately, the officials acknowledged the importance of making informed decisions regarding the ambulance service to mitigate the general fund deficit while ensuring adequate emergency services for the community. The meeting concluded with a call for further exploration of the financial models to determine the most sustainable approach moving forward.