No. 42826 (Amendment): Rule R426-8. Emergency Medical Services Ground Ambulance Rates and Charges

(Amendment)

DAR File No.: 42826
Filed: 04/19/2018 12:08:24 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Department of Health (Department) is required to adjust ambulance maximum rates based on licensed ambulance provider fiscal data. The data is evaluated by the Department to determine if financial trends are causing the licensed ambulance providers to be fiscally viable. Current data was used to amend ambulance rates. Rule R426-8 is amended to update ambulance rates.

Summary of the rule or change:

Fiscal Reporting Guides (FRGs) are financial and statistical data collected from all EMS agencies statewide. The data collected showed emergency medical services (EMS) rates need to be increased at 3.5% so agencies statewide will have closer revenues matching expenses. Rule R426-8 needs to be amended to reflect these ground ambulance transport rate changes. Rates should be made effective on 07/01/2018 to coincide with Medicaid payment adjustments for the fiscal year.

Statutory or constitutional authorization for this rule:

• Section 26-8a-403

Anticipated cost or savings to:

the state budget:

State budget will not be impacted as this is a user fee.

local governments:

Local governments will be slightly impacted. The rates listed in this rule change are increased 3.5%. The licensed ambulance provider billing will increase base rates in order to offset lost collections, wages increases, and the increased equipment costs. A total benefit of $1,667,930 is anticipated for 2018.

small businesses:

There is one small business that is a licensed ambulance provider. This proposed amendment will increase the fiscal benefit by an estimated $12,070 the first year.

persons other than small businesses, businesses, or local governmental entities:

There are 6 non-small businesses that are licensed ambulance providers in Utah. These businesses account for an estimated 40% of the total billable ambulance patient transports per year based on reported patient transports. At the average price increase per patient transport of $40, these businesses are expected to receive $1,120,000 in increased revenues for 2018.

Compliance costs for affected persons:

The total fiscal costs to other persons was an estimate based on anticipated billable ambulance patient transports using prior year numbers of 70,000 transports multiplied by the average increase of $40 per transport. The average increase is based on a fiscal analysis conducted by the Department. The fiscal analysis demonstrated a need for a 3.5% maximum base rate increase. Data was based on patient care reports submitted to the Department by the licensed ambulance providers. The other persons are the patients who may need an ambulance transport. Subsequent years (2019 and 2020) were projected as an estimate of growth in numbers of patient needing transports. The total anticipated cost for affected persons is $2,800,000 for 2018, $2,850,000 for 2019, and $2,900,000 for 2020.

Comments by the department head on the fiscal impact the rule may have on businesses:

Data collected from all state EMS agencies and reported in the FRGs indicates that EMS rates should be increased 3.5% so the agencies revenues will match expenses. This proposed amendment reflects the ground ambulance transport rate changes effective 07/01/2018. Licensed EMS businesses will see an increase in revenue in order to offset increased expenses as indicated in EMS FRGs.

Joseph K. Miner, MD, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Health
Family Health and Preparedness, Emergency Medical Services
3760 S HIGHLAND DR
SALT LAKE CITY, UT 84106

Direct questions regarding this rule to:

• Guy Dansie at the above address, by phone at 801-273-6671, by FAX at 801-273-4165, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2018

This rule may become effective on:

06/21/2018

Authorized by:

Joseph Miner, Executive Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2018

FY 2019

FY 2020

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$2,800,000

$2,850,000

$2,900,000

Total Fiscal Costs:

$2,800,000

$2,850,000

$2,900,000

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$1,667,930

$1,697,690

$1,727,450

Small Businesses

$12,070

$12,310

$12,550

Non-Small Businesses

$1,120,000

$1,140,000

$1,160,000

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$2,800,000

$2,850,000

$2,900,000

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non-Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non-Small Businesses

The total fiscal costs to other persons was an estimate based on anticipated billable ambulance patient transports using prior year numbers of 70,000 transports multiplied by the average increase of $40 per transport. The average increase is based on a fiscal analysis conducted by the Department. The fiscal analysis demonstrated a need for a 3.5% maximum base rate increase. Data was based on patient care reports submitted to the Department by the licensed ambulance providers. The other persons are the patients who may need an ambulance transport. Subsequent years (2019 and 2020) were projected as an estimate of growth in numbers of patient needing transports. The total anticipated cost for affected persons is $2,800,000 for 2018, $2,850,000 for 2019, and $2,900,000 for 2020.

There are 6 non-small businesses that are licensed ambulance providers in Utah. These businesses account for an estimated 40% of the total billable ambulance patient transports per year based on reported patient transports. At the average price increase per patient transport of $40, these businesses are expected to receive $1,120,000 in increased revenues per year.

 

 

R426. Health, Family Health and Preparedness, Emergency Medical Services.

R426-8. Emergency Medical Services Ground Ambulance Rates and Charges.

R426-8-1. Authority and Purpose.

(1) This rule is established under Title 26, Chapter 8a.

(2) The purpose of this rule is to provide for the establishment of maximum ambulance transportation and rates to be charged by licensed ground ambulance providers in the State of Utah.

 

R426-8-2. Ground Ambulance Transportation Revenues, Rates, and Charges.

(1) Licensed ground ambulance providers operating under R426-3 shall not charge more than the rates described in this rule. In addition, the net income of licensed ground ambulance providers, including subsidies of any type, shall not exceed ten percent of gross revenue.

(a) Licensed ground ambulance providers may change rates at their discretion after notifying the Department, provided that the rates do not exceed the maximums specified in this rule.

(b) A licensed ground ambulance provider may not charge a transportation fee for patients who are not transported.

(2) The initial regulated rates established in this rule shall be adjusted annually on July 1, based on financial data as delineated by the Department to be submitted as detailed under R426-8-2(10). This data shall then be used as the basis for the annual rate adjustment.

(3) Base Rates for ground transport of a patient to a hospital or patient receiving facility are as follows:

(a) Ground Ambulance - [$746.00]$772.00 per transport;

(b) Advanced EMT Ground Ambulance - [$984.00]$1,018.00 per transport;

(c) Advanced EMT Ground Ambulance who was prior to June 30, 2016 licensed as an EMT-IA provider - [$1,212.00]$1,254.00 per transport;

(d) Paramedic Ground Ambulance - [$1,440.00]$1,490.00 per transport;

(e) Ground Ambulance with Paramedic on-board - [$1,440.00]$1,490.00 per transport if:

(i) a designated Emergency Medical Service dispatch center dispatches a licensed paramedic provider to treat the individual;

(ii) the licensed paramedic provider has initiated advanced life support;

(iii) on-line medical control directs that a paramedic remain with the patient during transport; and

(iv) a licensed ground ambulance provider who interfaces with a licensed paramedic rescue service and has an inter-local or equivalent agreement in place, dealing with reimbursing the paramedic ground ambulance licensed provider for services provided up to a maximum of [$456.00]$472.00 per transport.

(4) Mileage rates may be charged at a rate of $31.65 per mile or fraction thereof, and computed from the point of patient pick-up to the point of patient delivery. Fuel fluctuation surcharges of $0.25 per mile may be added when diesel fuel prices exceed $5.10 per gallon, or gasoline prices exceed $4.25 per gallon as invoiced.

(5) A surcharge of $1.50 per mile may be assessed if an ambulance is required to travel ten or more miles on unpaved roads.

(6) If more than one patient is transported from the same point of origin to the same point of delivery in the same ambulance, the charges to be assessed to each individual will be determined as follows:

(a) Each patient will be assessed the transportation rate;

(b) The mileage rate will be computed as specified, the sum to be divided equally between the total number of patients.

(7) A round trip may be billed as two one-way trips. A licensed ground ambulance provider shall provide 15 minutes of time at no charge at both point of pickup and point of delivery, and may charge $22.05 per quarter hour or fraction thereof thereafter. On round trips, 30 minutes at no charge will be allowed from the time the ambulance reaches the point of delivery until starting the return trip. At the expiration of the 30 minutes, the ambulance service may charge $22.05 per quarter hour or fraction thereof thereafter.

(8) A licensed ground ambulance provider may charge for supplies, providing supplies, medications, and administering medications on a response if:

(a) supplies shall be priced fairly and competitively with similar products in the local area;

(b) the individual does not refuse services; and

(c) the licensed ground ambulance personnel assess or treats the individual.

(9) In the event of a temporary escalation of costs, a licensed ground ambulance provider may petition the Department for permission to make a temporary service-specific surcharge. The petition shall specify the amount of the proposed surcharge, the reason for the surcharge, and provide sufficient financial data to clearly demonstrate the need for the proposed surcharge. Since this is intended to only provide temporary relief, the petition shall also include a recommended time limit. The Department will make a final decision on the proposed surcharge within 30 days of receipt of the petition.

(10) The licensed ground ambulance provider shall file with the Department within 90 days of the end of each licensed provider's fiscal year, an operating report in accordance with the instructions, guidelines and review criteria as specified by the Department. The Department shall provide a summary of operating reports received during the previous state fiscal year to the EMS Committee in the October quarterly meeting.

(11) The Department shall review licensed ground ambulance provider fiscal reports for compliance to Department established standards. The Department may perform financial audits as part of the review. If the Department determines that a licensed ground ambulance provider is not in compliance with this rule, the Department shall proceed in accordance with Utah Code Title 26-8a-504.

(12) All licensed ground ambulance providers shall submit a written total number of patient transports for each calendar year to the Department for calculating Medicaid assessments.

(a) A written patient transport number shall be submitted within 90 days after the end of the calendar year.

(b) The submission shall include a written justification when patient transport numbers are not in agreement with patient care reports submitted to the Department as described in R426-7. Written justifications shall include a description of data reporting errors, and a plan to correct future data submission.

(c) The Department shall use submitted patient transport numbers to calculate ambulance service providers assessments as described in Utah Code Title 26-37a-104(5).

(d) Submitted patient transport numbers and justifications for patient transport numbers not in agreement with patient care report data may be evaluated, corrected, or audited by the Department. If the Department determines that a licensed ground ambulance provider is not in compliance with this rule, the Department may proceed in accordance with Utah Code Title 26-8a-504.

 

KEY: emergency medical services, rates

Date of Enactment or Last Substantive Amendment: [July 10, 2017]2018

Notice of Continuation: November 10, 2015

Authorizing, and Implemented or Interpreted Law: 26-8a

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