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City Council Meeting <br />Aug. 12. 2002 <br />Page 5 <br /> <br />City Attorney Schenk stated that in their meeting with Mr. Bass and Mr. <br />Parson, who is the County Auditor, Mr. Parson indicated that he would rather <br />be in the position of getting back a refund instead of having to find additional <br />money. City Attorney Schenk said that the city is in agreement with that. City <br />Attorney Schenk pointed out that the city's share of the shortfall to be <br />$502,476.00. Mr. Klinkerman said that was true and the projected shortfall for <br />the City for that year was $525,000.00, which decreased to $502,476.00. <br /> <br />Mayor Pfiester wanted to know if the shortfall comes from inside the city limits <br />or outside the city limits. Mr. Klinkerman responded that his office does not <br />have records based on where the patient is picked up. They pick up patients <br />who request ambulance service. It does not matter where the patients are. <br />They could be in another state. It is additional keystrokes to track location and <br />it is not relevant to the financial part of EMS. <br /> <br />Mr. Klinkerman explained that historically the charges that were charged for <br />ambulance service were very low, and it was never intended for the user fees <br />to cover the cost of ambulance service. It was just understood that there would <br />be a loss. No one runs an ambulance service for a profit. The City of Paris has <br />never tried to generate enough revenue to be able to cover the entire expense. <br />Mr. Klinkerman said the cost of the EMS that he supervises is the cost of the <br />rescue components, which is also in a different budget. There is the cost of <br />administrative service also. The administrative portion comes from accounts <br />payable, human resources, legal, and city clerk. These departments help support <br />the EMS Department instead of the EMS having to employ all of those people. <br /> <br />City Attorney Schenk said he was looking at the issue of indigent care and <br />reimbursement of Medicare as one of those numbers cause a shortfall. Mr. <br />Klinkerman advised that on the revenue side, the city is obligated, if the city <br />is licensed in the State of Texas, Medicare requires that you participate, which <br />means you accept what the allow. For example, you charge $400.00 and <br />Medicare only allows $200.00, then they will only pay 80% of the $200.00. He <br />said the difference in what they allow and what is billed is legally uncollectible. <br /> <br /> <br />