Ambulance service may organize into non

Ambulance service may organize into non-profit

Dec. 1, 2001

By Jim Mimiaga
Journal Staff Writer

To improve efficiency, Southwest Memorial Hospital is considering re-organizing its ambulance service into a non-profit corporation.

The reason, says CEO Bob Peterson, is that doing so will allow for more independent control of the service, plus make the billing process simpler. If approved by hospital management, the new organization would stay "in house" but have a small board of directors to help oversee the system.

"It allows us to have more focus on that department and gives us cleaner billing," Peterson said.

Non-profits, like the one proposed, can bill Medicare separately from Southwest, he said. That way invoices for ambulatory services will not be lumped together with hospital bills to Medicare.

"Separating that bill makes accounts receivable less confusing for us, the patient, and insurance companies," Peterson said. "That’s why were doing it."

Another reason is that ambulatory services are an industry-wide money loser for hospitals, including Southwest. Putting them under a 501c3 non-profit status gives managers improved financial oversight, and therefore less chance for administrative errors.

Peterson said that hospitals in larger cities like Farmington and Montrose have the emergency infrastructure to absorb ambulatory services, which is ideal. But smaller towns with their volunteer fire and rescue departments cannot afford that luxury.

In October, the hospital’s operating board turned down a proposal from Randy Smith to operate the ambulance service privately, but with a yearly hospital subsidy.

Smith, who is the chairman of the Montezuma County Hospital District board, is also director of health occupations at San Juan Vo-Tech.

Southwest employs eleven full-time EMT’s and paramedics, using four ambulances. Two ambulances will soon be replaced, Peterson said, and eventually, the fleet will switch over to diesel engines because of their longevity over gasoline ones. Monitors and other medical equipment for ambulances will also be upgraded.

Southwest has applied for two grants totaling approximately $200,000 to help pay for the new equipment.