Council Votes to Increase Fees for Ambulance Services

The Los Angeles City Council voted Friday to substantially increase ambulance fees in response to an audit that found the city collects only 25% of the cost of providing ambulance services.

The fees--for everything from basic life support treatment to bandages to traction splints--will increase from about 10% to nearly 70%.

The fee increase was one of several recommendations made by city Controller Rick Tuttle in a critical March audit of the Fire Department’s ambulance billing system.

Tuttle concluded that it was inefficient and that the fees did not cover the cost of providing the services, among other problems. He recommended using an automated data collection system and private collection agencies.

“The current service rate and collection ratios result in the annual recovery of approximately $43 million less than the total cost of the program,” according to the audit.

Because most ambulance fees are paid by insurance companies or by Medicare and Medi-Cal, Tuttle’s audit suggested the department more aggressively pursue collections from those agencies.

Under the fee increases, the cost for basic life support treatment and transportation to a hospital would rise from $147 to $173. That is in addition to a fee of $10.75 per mile, up from the previous $6.38 per mile.

The cost of oxygen would increase from $20 to $36.

The city would also add some new fees, such as $53.75 for the cost of a cervical collar to stabilize possible neck injuries.

In contrast, Los Angeles County, which contracts with private ambulance firms, charges up to $402 for basic life treatment and transportation.

In last year’s city budget, Mayor Richard Riordan recommended that the city adjust the fees to reflect increases in the cost of living. He also included full-time funding to hire a nine-member team to aggressively collect overdue ambulance bills.

Together, the increases and the more aggressive bill collection effort are expected to increase city revenues from $15.2 million to $17.2 million annually.