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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 3/24/2025 | | DEPARTMENT: | Fire | | DIRECTOR: | Chris Biggerstaff, Fire Chief | | AGENDA ITEM: | Amendment to the City Ambulance Service Fees | | RECOMMENDED ACTION: | Adoption of Ordinances |
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| | | | | | | | ITEM SUMMARY To amend Ordinance No. 2020-10-2 codified as Section 8-3, City Ambulance Service, of Article I, Chapter 8, Fire Prevention and Protection, of the Code of Ordinances of the City of Plano to adopt increased user fees for City Ambulance Services; and providing a repealer clause, a severability clause, a savings clause, and an effective date. Adopted Ordinance No. 2025-3-6 |
| | | | | | | | BACKGROUND The cost of providing emergency medical service (EMS) has increased significantly over the past decade. Vehicles, salaries, medications, equipment, and supplies have all been subject to significant inflationary increases. Ambulance providers have cited between a 70-80% increase in vehicle operating costs since 2019. The increasing cost of providing service has strained the budgets of many public and private EMS providers.
PFR worked with Digitech (Plano’s EMS billing provider) to perform an ambulance fee evaluation in September 2024. Plano and its immediate neighbors have significantly lower ambulance fees when compared to other Metroplex EMS providers. PFR’s ambulance fees were last adjusted in 2020. PFR’s current basic life support (BLS) service fees are only 15% higher than 2008. For comparison, the U.S. Bureau of Labor Statistics calculator shows inflation of 50.5% from 2008-2025.
Based on the results of the Metroplex ambulance fee evaluation and considering inflation, PFR is recommending a 50% increase in ambulance fees. Digitech estimates this would generate an additional $1.6 million (approximately 29%) in annual revenue. Commercial payers (insurers) would be the primary source of additional revenues with a rate increase. With a 50% increase in fees, commercial payers will be responsible for approximately 75% of the increase in total revenues. According to Digitech, patients would pay for very little of the increase. Based on their projections, patients themselves will be responsible for 3-7% of the new potential revenue.
The proposed increase would result in PFR’s ambulance fees ranking 9th out of the 19 Metroplex cities included in the evaluation. PFR feels the increased fees will assist in continuing to provide the best possible patient care while keeping service charges near the median of Metroplex departments. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS Approval of this item will increase Plano Fire & Rescue's ambulance service fees by approximately $650,000 for the remainder of FY 2024-25 and by $1,600,000 in annual revenue each year thereafter.
Approval of this fee increase will support the City's Strategic Plan Critical Success Factors of being an Excellent, Innovative, and Accountable City Government with Safe, Vibrant Neighborhoods. |
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