2 Air Rescue Services Fail to Collect Fees : Safety: The county seeks an exemption from an FAA order affecting such charges. Outstanding bills for helicopter use total $433,000.

Two Los Angeles County air ambulance services that escaped the budget ax last year after being ordered to charge victims a rescue fee have failed to collect $433,000--more than 90% of the bills they issued, according to a county report released Thursday.

But the report warns that it may be illegal under a recent Federal Aviation Administration order for the Sheriff’s and Fire departments to charge fees for using government-owned helicopters to perform mountain rescues and airlift patients in remote areas of Los Angeles County. The county is applying for an exemption to the FAA order, which was issued this spring after commercial helicopter companies raised concerns about unfair competition from government-owned aircraft.

If the fees are allowed, a private agency or the county treasurer and tax collector should take over billing and collections for the services, according to the report prepared by the county administrative office. It notes that more than 100 private agencies have expressed interest in doing so since The Times reported a low collection rate last month.

But the sheriff will spend $900,000 to fund the Air 5 helicopter program this fiscal year regardless of whether it is allowed to charge a user fee of nearly $1,380 per rescue. The unit now operates four days a week from its station in Barley Flats above Pacoima with a staff of six deputies, down from 17 last year.

“The money would really help, especially to continue two or three more days a week,” said Fred Ramirez, director of the Sheriff’s Department’s administrative services. “But it’s not a matter of going out of service.”

The Sheriff’s and Fire departments billed 367 people $477,000 in fiscal year 1992-93 for air rescues. But they collected only $44,000, or 9.2%, according to the report. The departments had assumed in October when the fee was adopted that they would have a 66% successful collection rate, the report states.

“They know how to save lives, but they’re not experts in billing,” said Joel Bellman, a spokesman for Supervisor Ed Edelman.

Fred Ramirez, director of fiscal administration for the Sheriff’s Department, said the agency’s lack of familiarity with billing medical insurance companies contributed to the lax performance. Another major factor was Medi-Cal’s refusal to reimburse the county for the fees because of the FAA order banning fees.

Los Angeles County has stopped charging fees for the air ambulance service, but can bill recipients up to a year later for the service if it obtains an exemption from the order, said Eva Snider, the county analyst who prepared the report.

At issue are the regulations regarding government-owned aircraft. Currently, such aircraft are exempt from all FAA regulations regarding licensing and inspections, but the government agencies may not charge service fees, said Allan Ashbury, manager of the flight standards district office in Riverside. If fees are charged, the aircraft then are categorized and regulated as commercial, he said.

“What is happening is that municipalities are trying to lower their operating costs and charging fees is one way of doing it,” Ashbury said.

But commercial helicopter pilots mounted a campaign against the practice, resulting in the April 28 FAA order.

“If they enter the commercial realm, they should have to comply with the same rules for safety and business reasons,” said Anna Minaya, manager of legislative affairs for Helicopter Assn. International, which represents 1,200 companies worldwide. “They’re direct competitors.”

But Lt. Brock Simon, head of emergency services for the Sheriff’s Department, said air ambulances should be exempt. “We’re providing an important service,” he said.