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Pa. ambulance service seeks additional funding amid $500K deficit increase

With costs for staffing, equipment and insurance climbing, Good Fellowship Ambulance projects a $500,000 increase in its 2026 deficit

By Bill Rettew
Daily Local News

WEST CHESTER, Pa. – Members of the Public Safety Committee received difficult news at last week’s meeting: Good Fellowship Ambulance’s projected annual deficit for 2026 has increased by about $500,000. The organization will need additional funding from the 10 municipalities it serves, as well as support from the broader community.

In an email, Executive Director Charles “Chaz” Brogan explained that Good Fellowship’s annual deficit has been growing much faster than municipal funding, donations, and grants can keep up with. Brogan is seeking a large, likely one-time correction from all the municipalities Good Fellowship serves. With this adjustment to bring municipal funding to a more sustainable level, he expects municipal budget requests to return to a more manageable increase of less than ten percent per year, although he cautioned that there is no guarantee given the current economic climate.

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Brogan appealed to the West Chester Borough Council for a substantial increase in its contribution, requesting about $125,000 more for 2026. Council is seriously considering the request but has not yet made a decision. October is budget season, and a balanced budget must be adopted by December 31.

Brogan referenced a $483,000 funding gap in their 2025 budget, which had been temporarily labeled “unidentified donors” in the budget. That gap was ultimately filled through a state loan program providing short-term support for capital equipment purchases.

Annual operating expenses for emergency medical services total $6.2 million, with billing revenue from insurance covering about $3.8 million. Donations and subscriptions are expected to support 18 percent of deficit, while grants will account for 13 percent in 2026. Municipal funding is projected to cover more than half of the organization’s deficit.

Capital needs for 2026 include an ambulance purchase and associated equipment totaling $357,000, along with facility renovations of $131,000, for a combined $488,000. Other capital projects are being deferred for now.

The largest budget increases are driven by EMT and paramedic salaries and benefits, reflecting widespread recruitment and retention challenges, declining volunteerism, and post-pandemic wage surges. Over the past five years, the costs of vehicles and durable medical equipment have risen sharply, further impacted by tariffs. Property and casualty insurance premiums have also increased for ambulance providers.

Good Fellowship has been proactive in managing these challenges. The organization has outsourced EMS billing and its CFO and controller functions, leveraged state 2 percent loans, transitioned to a new insurance broker to market their policies, reduced staffing during lower-demand hours, and advocated for state and federal legislation to increase insurance reimbursements

Brogan noted that call volumes continue to rise, requiring greater investment in staffing, training, and equipment. Inflation in ambulance costs, medical supplies, durable medical equipment, and insurance continues to drive overall expenses higher. Vehicle prices have risen particularly fast, and Brogan reported that new ambulance costs have increased by more than ten percent each year.

In West Chester Borough, call volume has increased 31 percent over the past five years. Many residents now rely on the hospital as their entry point into the healthcare system, a shift that began during the pandemic. Population growth and an aging community have also contributed to higher demand.

Brogan emphasized that the financial shortfall is not a new problem. The deficit has grown each year, especially since the pandemic, and was compounded by the loss of a major anonymous foundation that had supported equipment and vehicle purchases until 2024, when its philanthropic efforts were concluded.

Retaining skilled paramedics and EMTs remains critical to maintaining rapid, high-quality care. Like other healthcare fields, EMS was not immune to workforce challenges during and after the pandemic, and wages have risen sharply nationwide. Competitive compensation and expanded training are now essential to recruit and retain qualified professionals.

Brogan stated that EMS personnel work in a demanding and stressful profession and are not compensated at a level that reflects their responsibilities. Under the current agreement, municipalities contribute about half of the operating loss, while Good Fellowship fundraises to cover the rest.

The organization will continue to aggressively pursue grants, partnerships, and operational efficiencies to manage costs, but Brogan warned that grants and donations alone cannot close the current deficit.

Last year, Good Fellowship answered 2,281 calls in the Borough of West Chester. Police Chief Josh Lee urged the Borough Council to ensure a smooth transition through 2026 and beyond, noting the professionalism and quality of care provided by Good Fellowship. “I beg of you to do whatever you can do,” the chief said.

The community can support Good Fellowship by making donations or purchasing ambulance subscriptions at www.GoodFellowship.org. Brogan added that the organization’s annual support mailer will be arriving in residents’ mailboxes within the next two weeks.

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