05/27/1980 Meeting - Laserfiche WebLink

Home Browse Search

needed now and they could not wait any longer. Mr. Delay asked if the two points of the rationale for the rate increase request were qeneral economic conditions (cash flow problems) and accounts receivable. Mr. ~ Leonard responded that that was correct. Mr. Delay asked if, given ,., those circumstances of financial need and the fact that the study would be completed within about 60 days, there is a great financial risk to MSI by waiting 60 days. Mr. Leonard responded that they project a decrease in collections since people are extending the payment period due to the economy. With the Medicare problem, if the rate is approved in July of this year, they would not be effective until July of 1981. If they are approved in September of this year, they would not be effective until July of 1982. Mr. Delay asked what his current record of collection rate is. Mr. Leonard respon- ded that they are maintaining a 94- to 95-percent collection rate but expect it to drop to around 90 percent. Mr. Lieuallen asked how many divisions there are in MSI s~:nce the city regulates only a portion of the enterprise, the emergency ambulance service. Mr. Leonard responded that separate from the ambulance service, they have contract first-aid, rentals and sales, mortuary, and allied services--computer software. Mr. Lieuallen asked if there is a strict financial accounting of the various operations keeping them separate. Mr. Leonard responded that there is. Mr. Lieuallen asked if they are dealing with the ambulance service division only. Mr. Leonard responded that they are but the figures that the councilors are looking at include everything to show how items are charged out. Mr. Lieuallen asked if the ambulance service might subsidize other portions of the company. Mr. Leonard responded that each portion carries its own weight. Mr. Lieuallen asked if MSI 4It charges from office to the scene of the emergency to the hospital to the office. Mr. Leonard responded that mileage is charqed all the way from the office to the emergency scene to the hospital to the office, unless there is another emergency in which case they do not charge back to the office. He said trip sheets account for all of this. He stated that in Portland, two ambulance companies charge back to the office, one does not. Mr. Lieuallen asked for clarification from the City Attorney as to the nature of the contract and if it is a franchise. Ms. Schue asked for clarification of trip charges. Mr. Leonard responded that there were examples of a single emergency where they would charge mileage from the office to the scene of the emergency, to the hospital, and back to the office. Then if there was another emergency, and they were dispatched from the hospital, the first patient would be charged from the office to the emergency scene, to the hospital, and the bill would end at the hospital with no mileage being charged back to the office. Disruptions temporarily interrupted the meeting~ Mayor Keller restored order. . 5/27/80--10