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04/20/2016 02:03 PMMiddlesex Hospital representatives recently met with the boards of selectmen in Chester, Deep River, and Essex to propose a cost-sharing agreement for the hospital’s mandated regional paramedic service.
Currently, when the hospital charges Medicare, Medicaid, or private insurers for a paramedic response, the hospital is reimbursed at rate lower than the state-approved rate, leaving the hospital to bear the cost not reimbursed. This, coupled with new taxes the State of Connecticut has imposed on hospitals, has led the hospital to try to mitigate the financial loss incurred by providing paramedic service, according to Middlesex Hospital Paramedic Department Manager Jim Santacroce and Marketing and Development Vice President Laura A. Martino, who met with the towns’ leaders.
The program covers a total of 19 towns, including the three Valley towns, and although it has traditionally been provided to towns at no cost, Middlesex Hospital is now asking town governments to share the cost of providing the 24/7 paramedic coverage.
In the first year, the proposed town charge would be $1 per capita. The cost is proposed to increase incrementally, for the next five years, until it reaches $5 per capita in year five. At that rate, officials say the hospital would be paying 60 percent of the program’s cost and the towns, 40 percent.
If all the towns serviced by Middlesex Hospital paramedic services don’t agree to share the costs, in unfunded towns patients (often seniors) would be billed the full charge of the paramedic response, which is close to $600 per call.
Locally, Essex and Deep River have agreed to participate in the cost sharing, while Chester is still reviewing the proposal.
The paramedics are on duty 24 hours a day, 365 days a year, and used for advanced life support-level of 911 calls. An EMT can also call a paramedic. Presently, there are three paramedic units located in Westbrook, Middletown, and Marlborough.
Currently the paramedic program gets paid with what is referred to as the “bundled billing,” which means the town ambulance services bill insurance companies for services and the payment goes directly to that service. Only a small portion of the funds then goes to the paramedic program.
The Town of Essex has already added a new line item in next year’s budget to fund this program. The town has included $6,700 for the Middlesex Hospital paramedics.
“This new line item has raised a reasonable amount of controversy,” said Essex First Selectman Norm Needleman. “The hospital says they lose about $1 million on this program each year and this accounts for its single largest negative.
“If all the towns are not unanimous in supporting this, it will not be a good,” added Needleman. “We are all in this boat together and if we think it will be less expensive to start our own paramedic program it won’t be, it would cost at least $2 million to do that.”
Deep River has also agreed to fund the program.
Chester First Selectman Lauren Gister said the town has not yet made a decision in regard to funding the program in the next budget, however ongoing, favorable discussions are being held.
“We are strongly considering it at this point, and we are talking about it in a positive yet guarded fashion,” said Gister.
Gister is calling for more information about a proposed advisory committee that would include hospital representatives and town leaders that would give locals some say in how things are handled in regard to this program in the future.
“Ultimately our concern is that we want to make sure our taxpayers are protected and have the services they need available to them,” said Gister.