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CITQOF SAN BERNARDIIO - REQUEQr FOR COUNCIL AcCbN
From:
Lee Gagnon
Business License
City Clerk
June 24, 19B7
REC'D.-ADMJ~ecRfF"set public hearing date and
supervisQ~, 1 ., I Ill" Og.dopt resolution to increase
IJU. nl\. I.. I ...1:J medical transportation rat .
Dept:
Date:
Synopsis of Previous Council action:
February lB, 19B5 - Council adopted current rates
Recommended motion:
That a public hearing be scheduled for the meeting of August l7, 19B7
at 9:00 A.M. to consider adopting the resolution to increase ambulance
rates and that the City Attorney be instructed to prepare the neces-
sary resolution for adoption.
That the City Clerk be authorized to publish notice of public hearing
in "block ad format" in the San Bernardino Sun newspaper.
~~~
Slgnat e
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Contact penon: Lee Gaqnon
Phone:
5036
SUPPDrtlng data Ittlched:
Yes
Ward:
N/A
FUNDING REQUIREMENTS:
Amount:
N/A
Sourcl: (ACCT. NO.) N/A
(ACCT. DESCRIPTION) N/A
Flnenca:
Council Notal:
t,.
'Ill."''''
Agenda Item No.
CIT~OF SAN BERNARDlrQ - REQUE~ FOR COUNCIL AC~N
STAFF REPORT
At their meeting of June 16, 1987, the Bureau of Franchises received the
attached proposal from Courtesy Services of San Bernardino for an increase in
rates for ambulance services. The Bureau of Franchises considered the proposal
and then unanimously recommended to the Mayor and Common Council that the fol-
lowing rate structures be adopted:
(1) Response to a routine
nonemergency call
(2) Response to a nonroutine
emergency call
(3) Additional Charges:
(a) Each mile or fraction
of a mile
(b) Waiting time after
first fifteen minute
period for each sub-
sequent fifteen min-
ute period or frac-
tion thereof there-
after
(c) Night service sur-
charge, seven P.M. to
seven A.M.
(d) Each additional pati-
ent, fifty percent
over charge for one
patient
(e) Carrier shall be
permitted in its dis-
cretion to fix the
rates for special
services not spec-
ified herein
(4) Response to a call for
ambulance not used
15-0264
PRESENT
RATE
BUREAU OF FRANCHISES
RECOMMENDED RATE
COURTESY
PROPOSED RATE
$120.00
$143.88
$143.88
174.50
209.23
209.23
6.00
7.19
7.19
11. 00
13.18
13.18
35.00
41. 97
41. 97
15.00
15.00
143.88
..
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DIN 0
C I T Y
oq SAN B/::;.NAR
INTEROFFICE MEMORANDUM
8707-20l
,)
TO: Raymond D, Schweitzer, City Administrator ~~
FROM: Lee Gagnon, Business License Supervisor
SUBJECT: Ambulance Rate Comparison Survey
DATE:
July 1, 1987
(7122)
COPIES:
-------------------------------------------------------------
A proposed ambulance rate increase by Courtesy Services
of San Bernardino will be on the Council Agenda for July 20,
1987,
At the request of Councilwoman Norine Miller, I conduct-
ed an ambulance rate comparison survey by contacting a number
of surrounding cities, I have attached the results of that
survey for your review, I have also attached the current
ambulance rates charged by the County of San Bernardino.
7" .'
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LEE GAGNON
Business License Supervisor
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IEPAR~ENT OF PUULlC i-;::,;'~
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COUNTY OF SAN ..:)ARDlNO
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i1 ....1lIt. VIew A_ . .. ---..no. CA 12415.0010 · 1714' 317..210
GEOflGE II. JlEmIlSEN. M.D.. ...,...
lIlNctor of I'\IlIlIc -.II
J....e 2, 1987
Terry L. Russ, Treasurer
Ambulance Association of
San Bernardino County
P.O. Box 934
San Bernardino, CA 92401
Dear Mr. Russ:
I have reviewed your application for ambulance service rate adjustment dated
May 26, 1987. After doing the cllq)utations specified in the fornula approved
by a Resolution of the Board of Supervisors on April 23, 1984, a revenue
change of less than 10 percent wuld result, actually a ,86S change in
revenue ,
The new average revenue for full-pay response wuld allow an increase of $7.12.
Computatibhs following the formula, yield the following results:
Base Rate
Mileage I
Emergency
Night
Oxygen
Tille Rate
ALS Base
E1CG
All inclusive ALS Service
$143.88
7,19
65,35
41,97
17.99
13,18
218,83
29,97
324.83
,
The new rates shall become effective J\IIle 19, 1987. I wuld call your attention
to the amulance ordinance, Section 31.0819(g)(3), that requires perlIIittees,
within 10 days of the effective date of the new rate, to publish these rates in
a newspaper of general circulation'in their service area once a week for Q<<l
weeks, ·
~ 'mJ;~#
GE GE . PETTERSEN, M.D.
Di tor of Public Health
GRP: al
cc: Ambulance Providers
City Managers
EXHIBIT B
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C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
8707-203
TO: Raymond D. Schweitzer, City Administrator
FROM: Lee Gagnon, Business License Supervisor
SUBJECT: Ambulance Rate Comparison Survey Addendum
DATE:
July 8, 1987
COPIES:
(7129)
A
of San
1987.
proposed ambulance rate increase by Courtesy Services
Bernardino will be on the Council Agenda for July 20,
On
ambulance
c'ities.
immediate
July l, I forwarded to you a report concerning
rates currently charged in a number of surrounding
I have since contacted two additional cities in the
area and have listed their rates below.
Upland
Nonemergency
Base Rate
Paramedic Base
Emergency
Mileage
Waiting time
per l5 min.
Night Charges
Advance Life
Support
Fontana
Base Rate
Mileage
Waiting time
per l5 min.
Nights and Weekends
Emergency Urgent
response
Oxygen
E.K.G.
Paramedic Service
;C~ ~ ----
LEE G~r-.
./
95.00
l40.60
213 . 84
63,86
7.03 per mile
l2,88
41. 01
3l7.52
108.86
6.78 per mile
22.22
44,43
61.l0
27.77
33.33
66.65
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Courtesy Services of San Bernardino based their rate increase proposal
on increased costs in several major areas including bad debts, insurance,
equipment replacement, attendants wages and administration. The last rate
increase in ambulance rates was granted on February 18, 1985. Increasing
the rates as recommended by the Bureau of Franchises would bring City
rates in line with the County of San Bernardino ambulance service rates.
Courtesy Services of San Bernardino operates under a franchise agreement
with the City of San Bernardino. A copy of the rate increase proposal by
Courtesy Services of San Bernardino together with a copy of the current
rates now charged by the County of San Bernardino have been attached as
exhibits A & B respectively.
Mr. Steve Rice, President of Courtesy Services of San Bernardino
will be present at the hearing to respond to any questions.
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COURTESY SERVICES
OF
SAN BERNARD I NO. I NC.
AMBULANCE RATE INCREASE REOUEST
Courtesy Services 01 San Bernardino. Inc. requests the resolution
01 rates for ambulance service be amended as lollows:
A. Ambulance Rates
Basic Llle Support response to a routine
non-emergency
$143.88
2.
Unscheduled emergency cal I.
additional
$ 65.35
3. Additional Charges:
a. Each ml Ie or I r a c tl on 01 a ml Ie $ 7 . 19
b. Waiting time a It e r I tr S t f 1ft e e n
m In ute period: for each subsequent
I I I tee n ml nu t e period. or f r a (: t Ion
thereof the rea I t e r $ 13. 18
c
Night surcharge. 7:00 p.m. to
7 : 00 a. m. Mo n day t h r 0 ugh F rid a y .
or weekend service
$ 41.97
d. Each additional patient. lolty
percent over charge for one
patient
e. Carrier shall be permitted In Its
discretion to f IX the rates lor other
special services not specified herein.
f.
Response to a call lor ambulance
not used.
1143.88
EXHIBIT A
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NARRATIVE
Presently Courtesy Services. IS In a loss p050ltlon due to Incre~5lng
service and technological aemands coupled with e~c;alatlng co':d~ and
fruzen or reduced revenue sources from government heal th aS51stante
programs.
The requested Incredse repre:)ents an 18% In,rea5e In
regulatad rates.
rate adjustment.
T hi!) I S I e S 5 t h a n 9% per ye .:l r ~ I nee 0 u r I a s t C, t Y
5 e r v Ice d ema n d s h a vel n C I e a sed due t 0 a h I g her c a I I v 0 I um e. an
ex pan dIn g c ommu nit y and I n ere a sed
Ime demands to complete call s
Since our last rate .ncrease request In 1985 call volume Increased
from It. 709 ann u a I t r an s po r t s to 12. 978 I n t he c, I Y (15. 185 to 1 7 . 6 1 1
total serv.ce area).
The population centers have spread throughout
the service area whiCh Increase emergency transport times.
State
and local emergency medIcal serv.ces agencies have Implemented new
regulatIons and medical protocols which have extended the tIme
necessary to work up and Ireat patients and complete cal Is.
To meet
the sed ema n d 5 and k e e p 0 u r res p 0 n 5 e t I me 5 wit t') I n rea son a b I e I I m ItS I t
is necessery to increase staff Ing and move or add substations.
Although the increased demands have ,ncreased our sale. substantIally.
the actual revenue generated by those sales has not kept up w.th cost.
due to contractual d,sellowances taken by the var .ou. governmental
assistance programs.
-2-
EXHIBIT A
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Requ I red and demanded
technological
advances are
IncreasIng co~:"
ParamedlClne has become the accepte~ and expected level of carl~ n
the community.
In order to proper Iy serve InterfaCI I I ty
r d n ~ t e r
and provide support to city paramedics It IS necessary for u.:. to
Increase our commitment to the paramedic program and add nur~lng
personnel to our staff.
Specialization and diverSity In mecJlcal
car e .
.e.. deSignated trauma. burn. cardiac and phYSical therapy
centers, and the dramatic change in heal th care economics are
Increasing the number of phYSICian ordered paramedic Interfacl I, ty
t ran S po r t s .
In addl tion to the Increased paramedic demands. Courte~y
needs to offer crt tical care transport service WI th advanced cardiac
life support nurses who can provide medical care beyond the scope of
paramedic practice.
We have been providing paramedic service for over 10 years.
AI thou';!l
the program costs US an addl tlonal 185.000 per year to provide. we
have not been charging for those services In the CI ty.
Paramedic
charges are now recognIzed and paid by Medicare and private InSurance
plans
II IS our intent to Implement paramedic charges under the
special services language of the rate resolution In the city.
In 0 r de'
to maXimize third party revenue on new sales we plan to Index to the
paramedic rates set by the County Health OffIcer.
We plan to Implemen
the crl tical care transport service once the program and charges are
approved by the Health Officer.
-3-
EXHIBIT A
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Ma/or cost ,ncreases ara gOing to occur ,n equ'pmeut replacement
lebor
Insurance and bad debt expense (cau5ed by (ontra~tual
dl!)sllowances from government PdY program5)
We have 8 need to replace 'IX low top amtJU'8n('.e~ wIth larger. mOle-
s tat a 0 f t h a a r
e Q lJ I pm e n t t 0 a f; ( ,') mm u ~ A 1 f:' 'h t:' 9 row I n 9 d em and 5 0 f 1 h c
serVice.
Additional paramedic equipment IS needed
Con~tantly
cheng.ng treatment protocols require new supplies to be added to the
,nventory evary year
Labor costs WI I I Increase In aI' lob cla~5tf Icatlons
Tor erna 1 n
competItive in the EMT labor market and meet the ,ncreased demands
for advanced services. personnel need to be added and wage~
,ncreased.
Dispatch IS now enle~ \ng dn era of I ts own
w~ are a,1dlnq
additional personnel. Increasing WR1es and formalIZing
r a ! n I n 9
programs.
Office and accounts receivable staff have mOle than doubled
,n the past twelve months.
Insurance expense WI I I continue to esr
"
Our Insurance \:osts have
Increased $39.550 which IS up 71 7% and we antICIpate an 80% Increase
this year
expense
We expect a very moderate Increase In general
I a b l I \ t Y
Ambulance Insurance (vehicle perso~al Injury and proper ty
damage. and comprehensive as wel I as medical malpractice) W' I I continue
to dramaticallY Increase
Wor kmen' 5 compensa t Ion I nsur aoce. wh I eh 15,
at 17. 6% par h u n d red dol I a r s 0 f pay r 0 I I. w I I I 1 n c rea sed u e tot he
-4-
EXHIBIT A
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needed .ncreases In personnel. wages and new fates set by the In~uranc~
commISSioner
Our bad debt expense WI I I cont ,nue to be the most drama!,c cost
Increase.
Bad deb t ex pen s e " a comb' n at, 0 n 0 I un c 0 I I e c t , b I e
accounts (true bad debt) and contractual d,.al lowances made by
Med.-Cal, Medicare, and the local Indigent program.
Ou r true
bad debt ,ncreased dramat.cal Iy over the past two year.
i h I ~.
Increase wa5 caused by new billing st lpulatlons and compl.Cdt Ions
bU' It 'nto the Med.-Cal and Med.care progrems.
1!1 I)rdel to tl)ee t
t hi. c h e I I en 9 ewe pur c has e d a new b' I I , n 9 c omp ute ran d (j 0 ubi e d
our oll,ce stall.
At pre s e nt, un c 0 I I e c t , b I e s r e pre S e n t 29% "f 0 u r
total patIent load.
We pro J e c t _ red u C I n 9 t hat I, g u r e to 16% w, t h It, e
new b, I I 'Rg system.
Although true uncollectlbles w,lI be reduced sUbstant'ally. the bad
deb t ex pen sew j I I I n ere a set 0 47% 0 f 9 r os S 5 a I e s due to bud get cut 5 .
freezes or reductions in the variOUS governmental pay sources.
The f 0 I I ow I n 9 I 5 a c h art 0 t 8: v era 9 e d I 5 a I Iowa nee 5 t rom d Iff ere n t
programs based on current and new rates.
Current Rate
Increa5ed Rate
Medicare
Med,-Cal
Med,-Med,
County
36%
60%
49%
65%
15%
70%
47%
71%
-5-
EXHIBIT A
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Bad debt expense continues to be a major Dfot.1em fOI al
h e ~ I t h
care providers.
The patIent mI. (the blend of pr lvate. medl-tal
medi-medi. medicare. Indigent and uncollectIble) IS based
~tr I~tly on the SOClo-economlCS of the service communi ty as wel
as the providers abl I Ity and WI I I I~gne~s to serye al I patients
or refuse to serve low pay/no pay patl~~ts
Just recently the
San Bernerd,no County Hospital w.thdre'N ,t', Medl-Cat contract tor
Inpatient services with the state
The county fet tit needed to
take action because the state was paYing below cost
A It he. ugh
faced with the same Issues. we WI I I not r~tuse s~rvlce from a mordl
ethical or I iab. I Ity standpOint
RATE INCREASE EFFECT
The reQuested rate Increase WI I I
"
t~le average charge from
$224.07 per patient to S26437 ~r"c"
5 a:'". ~ B% I n I, rea 5 e t n rat e:;,
Based over the last 2 years that reprt~ents a le&s than 9% IflcreSS0
per year,
The fol lOWing illustrates that Increa'~
Charae
Increase
Fa c tor
Net Increase
Response
Emergency
MI I eage
Times
Night/Weekend
$23,08
$10.85
S 1 19
$ 2, 18
S 6.97
98%
58% .L
6'~
1%
48%
S23 40
S 6.25
$ I 14
$ .02
S 3.45
-6-
EXHIBIT A
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Since our cost per call will escalate to 1308 8b IncludIng prof I t
by the end 0 f Ma y. 1988. we w I I I nee d a n add,., 0 n d I $ 4 4 ') 1 P ~ rea I
In order to generate the addl t lonal sale5 we are prepar log to (.harye
for advanced I ,fe support serv,ces as regulated by the County
It 15 our intent to charge those who ut I I lze the special serVice!
and maXimize third party payment for ~uch services as opposed to
exorbi tantly raising the basIc rates t(l 31 I consumers whICh WI I I have
strong negat.ve ,mpact on low ,ncome pat,ent,
We are the only commercial ~ervlce In the area currently providing
advanced
ife support services w, thout charging for such.
The
requested rate .ncrea.e coupled w, th county regulated advanced I,fe
support charges ,s a pari ty adlustm.nt ,n rates which w, I I br 'n9 the
company back ,nto a profl
pOSlt!G1'" ::r~d allow growth In technology
and al low us to continue malntalnl~g high In~ustry service standards
-7-
EXHIBIT A
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SUf'PORT '!iIl.~6
r h e f 0 I low I n 9 d 8 t a I s e rt c I (I ~ e d t () ~ u P P (d f t tl f:' :" t ': I fI l 1 .:.J '- -
P a yme n t 0 IS I " b u I ,on
2 Pro J e c t e d P a yme n I () lot riD uti (> n
3. Operations Income and Expeno:.e ~ti3fer'r~r"l1.
4. Schedules to Operat Il1Q EAo~n5l!
5. Projected Incon's and ((p~n~e ;,~t~m~"t
6 Projected Schedult:~ of ()~eratlnq E/(;er,~~
7. Comparative Rate SUlvey
-8-
EXHIBIT A
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PAYMENT DISTRIBUTION
SAN BERNARDINO CITY
2/88 through 1/87
RATE PATIENT PATIENT
POPULATION DISTRIBUTION
Kaiser 1038 8.0%
Private 1817 14.0%
Medi-Cal 1298 10.0%
Medi-Medi 2596 20.0%
Medicare 908 7.0%
County 1557 12.0%
Uncollectable 3764 29.0%
------ ------
Totals 12.978 100%
:>
AVERAGE
PAYMENT
1253.01
207.53
89.87
112.72
144.24
79.56
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TOTAL SERVICE AREA
2/86 through 1/87
RATE PATIENT PATIENT AVERAGE
POPULATION DISTRIBUTION PAYMENT
Kaiser 132 1 7.5% 1251.34
Private 2730 15.5% 212.86
Medl-Cal 176 1 10.0% 96.08
Medi-Medi 3258 18.5% 121.08
Medicare 132 1 7.5% 143.66
County 2289 13.0% 85.54
Uncollectable 4931 28.0% 0
------- ------
To t a I s 17.811 100%
-9-
EXHIBIT A
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PROJECTED PAYMENT DISTRIBUTION
RATE
Kaiaer
Private
Medi-Cal
Medi-Med,
Medicere
County
Uncollectable
Totals
RATE
Keiser
Private
Medi-Cal
Medi-Medi
Medicare
County
Uncollectable
Totals
SAN BERNARDINO CITY
2/86 through 1/87
PATIENT
POPULATION
110 1
1926
2202
3165
1514
1650
2202
13.760
TOTAL SERVICE AREA
PATIENT
POPULATION
1463
2987
2800
4480
1493
2427
2988
18.668
-10-
PATIENT
DISTRIBUTION
8.0%
14.0%
16.0%
23.0%
11.0%
12.0%
16.0%
100%
PATIENT
DISTRIBUTION
8.0%
16.0%
15.0%
24.0%
8.0%
13.0%
16.0%
100%
EXHIBIT A
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COURTESY SERVICES OF SAN BERNARDINO, INC.
Operetlons Income & Expense Statement
12 Months EndIng February 1987
SALES
COST OF SERVICES
Ambulance Repair & Maintenance
Gas & 0, I
Deprec,at ion Expense
Ambu lance Supp I' es
Employee Training
Radio Expense
Ambulance Wages
Ambulance Payrol I Taxes
TOTAL COST OF SERVICES
GROSS MARGIN
Less: Operating Expenses
INCOME FROM OPERATIONS
OTHER INCOME (EXPENSE)
INCOME BEFORE TAXES
-11-
S4.080.412
105.518
60.843
67.213
48.315
1 1 . 173
12. 187
820.341
61.839
Sl.187.429
2.892.983
3.146.498
(1253.515)
S49.742
(S203,773)
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EXHIBIT A
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COURTESY SERVICES OF SAN BERNARDINO. INC.
Schedules to Operating Expense
\2 Months Ending February t987
ACCOUNTING
ADVERTISING
BAD DEBT EXPENSE
BUSINESS PROMOTION
CASHCOVER AND SHORTl
COLLECTION EXPENSE
CONTRIBUTIONS
DEPRECIATION & AMORTIZATION
DUES AND SUBSCRIPTIONS
EMPLOYEE WELFARE
INSURANCE
INTEREST
LEGAL
LICENSES AND FEES
MEETINGS & CONFERENCES
OFFICE EXPENSE
OUTSIDE SERVICES
RENT
REPAIRS AND MAINTENANCE
SALARIES
TAXES - PAYROLL
TAXES - PROPERTY
TELEPHONE
UTILITIES
TOTAL OPERATING EXPENSES
-12-
49,785
9,745
\,9\7,27\
2,744
20
5\ ,968
26,94\
45,102
25,946
74,448
94,739
29,551
7,014
\\ ,331
33,696
88,253
32,559
66,764
26,737
44\,465
45,627
10,155
30,607
24,030
-3.146,498
----------
----------
:)
EXHIBIT A
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COURTESY SERVICES OF SAN BERNARDINO. INC.
PROJECTED INCOME & EXPENSE STATEMENT
12 Months Ending May 1988
SALES
COST OF SERVICES
Ambulance Repair & MaIntenance
Ga s & 0 i I
DeprecIation Expense
Ambulance Suppl ies
Employee Training
Radio Expense
Ambulance Wages
Ambulance Payrol I Taxes
TOTAL COST OF SERVICES
GROSS MARGIN
Less: Operating Expenses
INCOME FROM OPERATIONS
OTHER INCOME (EXPENSE)
INCOME BEFORE TAXES
-13-
15.166.216
84.400
68.451
123.896
69.042
11.113
16.234
1.004.102
85.349
11,462.646
4.303.510
4.019.442
1224.128
1224.128
:)
EXHIBIT A
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COURTESY SERVICES OF SAN BERNARDINO. INC.
PROJECTED SCHEDULES OF OPERATING EXPENSE
12 Months Ending May 1988
ACCOUNTING
ADVERTISING
BAD DEBT EXPENSE
BUSINESS PROMOTION
CASH(OVER AND SHORT)
COLLECTION EXPENSE
CONTRIBUTIONS
DEPRECIATION & AMORTIZATION
DUES AND SUBSCRIPTIONS
EMPLOYEE WELFARE
INSURANCE
INTEREST
LEGAL
LICENSES AND FEES
MEETINGS & CONFERENCES
OFF I CE EXPENSE
OUTSIDE SERVICES
RENT
REPAIRS AND MAINTENANCE
SALARIES
TAXES - PAYROLL
TAXES - PROPERTY
TELEPHONE
UTILITIES
EMPLOYEE RETIREMENT PLAN
TOTAL OPERATING EXPENSES
-14-
29.500
9.000
2.606.822
5.704
28.521
16.340
64.486
29.936
77.936
170.741
59.102
8.785
10.096
27.984
75.000
31.250
74.568
19.200
562.428
38.440
10. t 55
32.607
28.836
40.000
14,079.442
-----------
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COUNlY OF SAN BERNARDINO
. ,," ,"';"_"'''~d t<r>~~.~""\ "~~......,~;~..:1....-.~~.
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351 NCH1h Mt. IIIew Avenue' Sill Bernardino. CA 9241&-0010 . 17141387.6280
GEORGE R. PETTERSEN, M.D.. M.P.H.
Director of Public H..lm
June 2, 1987
Terry L. Russ, Treasurer
Ambulance Association of
San Bernardino County
P.O. Box 934
San Bernardino. CA 92401
Dear Mr. Russ:
I have reviewed your application for. ambulance service rate adjustment dated
May 26, 1987. After doing the computations specified in the formula approved
by a Resolution of the Board of Supervisors on April 23, 1984, a revenue
change of less than 10 percent would result, actually a .86% change in
revenue,
The new average revenue for full-pay response would allow an increase of $7.12,
Computati~ns following the formula yield the following results:
'.
Base Rate
Mileage
Emergency
Night
Oxygen
Time Rate
ALS Base
EKG
All inclusive ALS Service
I
.
$143.88
7.19
65,35
41.97
17.99
13,18
218,83
29,97
324.83
.
1
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The new rates shall become effective June 19. 1987. I would call your attention
to the ambulance ordinance, Section 31.0819(g)(3) , that requires pernrittees,
within 10 days of the effective date ,of the new rate, to publish these rates in
a newspaper of general circulation'in their service area once a week for two
weeks. ..
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:.
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GE GE . PETTERSEN, M.D.
Di tor of Public Health
GRP:al
cc: Ambul ance Provi ders
City Managers
EXHIBIT B