Daniel Walker
Herald-Banner Staff
GREENVILLE
Tue, May 13 2008
—
The Hunt Memorial Hospital District Board of Directors approved renewing a contract with American Medical Response (AMR) to provide ambulance service to Hunt County.
But the board questioned proposed service fee and mileage increases and asked District Administrator Richard Carter to formulate three separate funding proposals to be chosen from at next month’s meeting.
AMR has been the ambulance provider in Hunt County since 1993 and was one of two companies to bid to provide service after the current contract with AMR expires this summer. AMR presented their proposal to the board while the other bidder, Careflite Ambulance, was not in attendance.
Board member Scott Stegall wanted to know why Careflite was not invited as well. “I don’t want to be obtuse, but I think you’ve made a de facto decision and we’re going to have to listen to a 45 minute presentation. Seems like you’re stacking the deck if you’re asking me to consider (between the two) and make a choice,” Stegall said asking whether the board was supposed to choose or accept or not accept an administration recommendation.
Carter answered that his recommendation was to continue the long-standing relationship with AMR, “(Both) proposals were pretty similar, they are so close that our recommendation is to continue with AMR.”
AMR South Division COO Ted Van Horne then presented a proposal that included a $100,000 increase in operating expenses from the previous year to $2.9 million next fiscal year.
The increase was based on requests from the HMHD board. However, the board was concerned that the contract included a higher per run price for patients and an increase mileage charge of $15 to $18 per mile.
Carter expressed the board’s concern. “The mileage charge of $15 (per mile) seems unreasonable.”
“We’re trying to keep the base rate down,” replied Van Horne.
“On 911 calls, it’s not a big deal,” Carter said. “But on transfers, $15 to 18 (per mile) is unacceptable. I’d like a lower rate for transfers.”
Van Horne said that couldn’t be done and then explained that under the proposed contract, a transfer to Dallas from Greenville would cost $1,600. He added the increase was based on a proposed lower subsidy from the hospital district, which is currently at $519,000 per year.
Carter then recommended that the subsidy be increased to $600,000 to 650,000 which would make for a base rate of approximately $725 per run.
The board accepted continuing with AMR and directed Carter to submit three funding options for them to chose from.
In other business, the board received information from NAVVIS Consulting’s Jeff Miller on a project Miller called, “A concept of developing office space physicians might own.”
Miller said he hoped to get the momentum rolling on the proposed building, which physicians would finance, but sit on property leased from the hospital district. He described the proposed building as 40,000 square feet, cost $11 million and would provide a 42 percent return on the investment in ten years. The board agreed to pursue the proposal.
District Chief Financial Officer Jeri Rich reported to the board that, “We are well ahead of budget.”
Rich said that that for the year, the district’s income was two percent, or $400,000, above budget while operating expenses were six percent, or $577,000 under budget when a deficit had been forecast.
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