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Iowa city votes to collect unpaid ambulance fees from tax refunds

By Micholyn Fajen
The Des Moines Register
Copyright 2007 The Des Moines Register

WAUKEE, Iowa — The city of Waukee will soon collect on a portion of about $80,000 in unpaid ambulance fees.

Currently, unpaid fees are written off as a loss to the city, but a vote at Monday’s City Council meeting to participate in a state program will draw the fees from the state tax refunds of those who are delinquent in payments to the city.

The program will cost the city $7 for each individual claim and is deducted from the gross proceeds collected.

The city must first attempt to collect the debt via a phone call and one or two letters with the intent to receive payment. If the debt is not paid and it is at least $50, the city may then submit the claim to the program.

“I’m shocked to hear how much we have outstanding,” said Councilman Mike Watts at Monday’s meeting. He said when his own father was taken to a hospital by Waukee paramedics he was never issued a bill.

Watts suggested that instead of outsourcing billing to other agencies that the city should consider hiring a part-time employee to follow up on the outstanding bills.

City Administrator Jeff Kooistra said he was unsure whether the third-party ambulance-billing company, Team Two of Des Moines, was doing enough to collect on bills.

“A large number of individuals who are delinquent are uninsured,” Kooistra told the council, so patients had to pay the cost themselves. “I’ve found the quicker we can get the bill out after service, the more likely we are to get paid.”

Invoices covered by Medicare or Medicaid do not repay the full amount as outlined under those federal programs.

Kooista said he believes that once the city submits the application to the state, the program would begin pulling from refunds issued on 2007 taxes. A claim must be individually submitted for each resident who owes the city for ambulance service.

Payroll and accounting assistant for the city Kari Schaufenbuel said the current balance owed on ambulance service is $82,987, and of that $55,000 is generated from patients who do not have insurance.

The total is the result of 184 unpaid ambulance calls. The average ambulance transport fee costs $500 to $600 per run.