Facing a $3.7 million budget deficit, East Chicago is looking at a proposal to privatize ambulance service, which would save a projected $1.4 million. But an interesting sidebar would be the private service’s ability to collect on unpaid bills.
In 2011, East Chicago’s two EMS units responded to 5,211 calls, but collected only $700,000 in fees, less than half what was billed.
Due to a city ordinance established in 2007, ambulance fees earned by municipal services cannot be forwarded to collection agencies when individuals who are uninsured or have limited coverage face unpaid fees. However, according to recent reports, this is not the case for non-municipal ambulance services.
As part of the outsourcing effort, all current 18 full-time EMS staff would be moved into jobs with Prompt Ambulance Service, the county’s exclusive private EMS provider.
So, no one would lose jobs, the City would save $1.4 million and unpaid bills would have a higher rate of payment.
Original coverage of the issue can be found here. You can also find information on the city’s third-party provider, Prompt Ambulance Service. You can also read the city’s Executive Order on the matter.