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City Council Minutes <br />May 13, 2002 <br />Page 17 <br />a net effect in this time period of a reduction of the anticipated shortfall in the <br />amount of $33,566.67. Mr. Klinkerman said the shortfall for the year is <br />anticipated to be approximately $450,000.00, and the total shortfall is <br />anticipated to be $800,000.00. <br />Mr. Klinkerman said the new fee schedule with Medicare went into effect April <br />l, 2002, which is going to make the shortfall worse because the fee schedule <br />anticipated less revenues because they are lowering reimbursements nation- <br />wide. Mr. Klinkerman told the City Council that this is why the city is being <br />so cautious about everything. He said you can not predict accurately the call <br />volume, what type of insurance a person might have or if they have insurance, <br />or what Medicare is going to do as far as the fee schedule. <br />Mr. Klinkerman told the City Council that ambulance services in the <br />surrounding areas are closing their operations and gave an example of Grayson <br />County, who had LifeTech Ambulance Service. He said that what Grayson <br />County did was to contract with Bell-Savoy to provide two of their ambulances <br />until they try to decide what to do. They also contracted to place an ambulance <br />in Van Alstyne and Whitesboro at a cost of $44,000.00 a month, while they <br />work this out. If you add that over a year, it is over one-half million dollars <br />that county is paying. Mr. Klinkerman said that Sherman is doing emergency <br />and their own transfers now. He said Fannin County is the same way. Their <br />EMS Service is going to be out by September l, 2002, but they are giving them <br />until September 30, 2002. Mr. Klinkerman said the City of Paris had talked <br />about this several years ago and in his packet there are numerous examples of <br />this happening all over Texas. <br />Mr. Klinkerman said that one of the reasons he wanted to present this <br />information to the City Council was that he would like to offer the opportunity <br />to present the same information on the EMS operation to the Commissioners' <br />Court so they can be better informed about where they stand on the financial <br />and operational basis. <br />