By Lela Garlington
The Commercial Appeal
MEMPHIS, Tenn. — If Germantown decides to get into the ambulance business, first-year startup costs are expected to reach nearly $1.6 million.
The Board of Mayor and Aldermen will discuss a possible ambulance service during its work session at 5 p.m. Monday. The biggest expenses involve hiring 13 workers to staff two ambulances for $895,000 and buying four new or used ambulances for $430,000.
One reason Germantown is looking at this issue is the possibility of consolidation. City officials say that if metro government becomes a reality, Germantown could no longer rely on private ambulance service through the county.
City Admin. Patrick Lawton believes the Charter Commission’s Public Safety Task Force is clear: “It says you guys are on your own. We can opt in if we drop our charter.”
But Julie Ellis, chairwoman of the Memphis-Shelby County Metropolitan Government Charter Commission, said that’s not the case. “All existing agreements will be recognized,” she said, including the ambulance services contract with Rural/Metro.
She plans to announce the clarification at Monday’s charter meeting. “It is like a red herring,” she said. “It is absolutely putting barriers up that don’t exist.”
Brian Stephens with Rebuild Government said that any municipality c ould still contract with metro government for ambulance service: “They have got the right to choose if they want to contract with metro government or if they want to provide their own ambulance service or join up with Collierville or even Olive Branch.”
In addition, Stephens said, state law allows cities to enter into intergovernmental agreements. No charter provision can override that.
Germantown intends to explore its options. “The decision to go in-house or contract this service will be up to the BMA,” Lawton said. “The administration, however, feels that ambulance service can best be provided for our residents by an in-house operation.”
The city pays $409,103 for its portion of the county ambulance contract. If it doesn’t opt out of the agreement, the city’s share likely would go up to almost $430,000 for 2011 and as much as $451,000 in 2012.
“Consolidation is what put the train on the track,” said Germantown Fire Chief Dennis Wolf. “Off and on for 20-plus years, we have talked about a city-operated ambulance service.”
In Shelby County, only Memphis and Bartlett fire departments provide in-house ambulance services.
Wolf wants to join them. “We should have start-to-finish patient care,” he said. “We should have total responsibility for patient care for our own residents — from the ambulance stretcher to the hospital gurney.
“Providing medical care for us is not new,” he said. “The change would be treating and transporting.”
If an ambulance is unavailable now, the city sends a fire truck with a paramedic and EMT to treat a person, at no cost to the patient.
However, he also knows a major pitfall of running such a service. “We won’t make money. It won’t pay for itself,” he said. “There’s not enough volume to break even or turn a profit.” That would mean the city would have to subsidize the service.
Based on expected revenues of about $560,000 and the city dropping its current contract, the city likely would spend an extra $540,000 to make up the deficit in the operation’s first year. Fire officials are projecting a second-year deficit of $23,000 .
Under the current proposal, Wolf said the city would contract out the billing portion for operating two around-the-clock ambulances. Two other units would be in reserve.
While Wolf is satisfied with Rural/Metro, he said as long as the city contracts out its service, “there will always be some level of uncertainty about how our residents are transported if we aren’t the provider of that service.”
Copyright 2010 The Commercial Appeal, Inc.