Commissioners Hear More on Tenn. County`s Ambulance Plan

Oct. 13--During a special called meeting of the Shelby County Commission's public works committee Thursday morning, commissioners will get answers to a string of questions as they consider the launch of a county-run ambulance service through the Shelby County Fire Department.

The county is weighing its options after ambulance contractor, American Medical Response (AMR), notified officials in August that it was not making money under the $1.7 million annual contract and proposed increases of up to $2.8 million. Or, it would exercise its option to end the contract.

Since its last committee meeting earlier this month, commissioners have asked about start-up costs, response times, long-term projections and collections from ambulance users, said Harvey Kennedy, county chief administrative officer.

"A little bit of variance in your collection rate has a lot to do with the net cost of your operation," Kennedy said. "And apparently, that's what led AMR to tell us they needed that big increase."

Commissioner Mark Billingsley has submitted a string of questions to the administration and met with public works director Tom Needham and fire Chief Alvin Benson to make sure he and the other commissioners understand the magnitude of the undertaking.

"It's a significant, new initiative on behalf of county government and I just wanted to be sure we dot our I's and cross our T's because it's going to be a long-term expense," Billingsley said.

AMR came to the county to renegotiate in the middle of its contract, and he doesn't want to see the commission rush into the ambulance business in haste.

"I just don't want us back at the table 24 months from now saying, 'Well, gosh, we could have planned better,' " Billingsley said.

For now, the service would be provided to the county's unincorporated areas, Arlington, Lakeland and Millington. For the unincorporated areas, the service would be paid for through fire fees, which are expected to increase by about 10 percent, Kennedy said.

Early estimates put the county's costs at about $3.9 million.

The money to buy 12 ambulances, hire and train staff would be borrowed from the general fund and reimbursed through the fees, Kennedy said.

Because county officials were still crunching numbers late Wednesday afternoon, the cost to each municipality was not available.

"Once the costs are finalized and determined, each municipality will be assessed its fair share based on population and call volume," Kennedy said.

Officials in Arlington and Millington say they intend to stay with the county.

"With the county we're still going to have an increase, but not the increase AMR was requesting," said Chief David Franks with the Arlington Fire Department. "Those numbers are still being kind of worked on, but it's still cheaper than what the AMR contract was."

Arlington planned for an ambulance service increase in its 2016-17 budget and the money will come from the town's general fund, Franks said.

Millington also pays through its general fund and expected an increase with AMR.

The Millington Fire Department has an automatic aid agreement with the county, which in turn provides dispatch services for Millington, said Gary Graves, Millington public safety director.

"We've got a really good working relationship with Shelby County Fire, so for us it's going to be really seamless if and when they move to this new ambulance service," Graves said.

Lakeland is still considering a contract with AMR, Mayor Wyatt Bunker said.

"The cost difference with the two is negligible. I really think we've got two good options and we'll make a decision based on the merits," Bunker said.

The difference, he said, is between $5,000 and $10,000. Lakeland covers the ambulance service cost through an emergency medical services fee that is separate from fire fees, he said.

Lakeland's board of aldermen is scheduled to meet on Thursday night, Bunker said, although he wasn't sure how all of the board members would vote.

If the commission approves the county's plan at its Oct. 17 meeting, Kennedy said they could have the ambulances in place by Jan. 1.

"But if we can't, AMR is going to do it on a short-term basis for an increased fee from what they're getting now until we're ready to stand up," he said. "Services will not be impacted in any way."

AMR will charge the county $110 an hour per ambulance or about $25,000 a day.

The commission committee meets at 8:30 a.m. on the sixth floor of the Vasco A. Smith Jr. County Administration Building, 160 N. Main.

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