Ambulance Rates will Increase by 2 Percent; Goal is to “Break-Even”

The Select Board has voted to increase rates for ambulance trips by 2 percent, as the town continues its deliberate march toward an eventual break-even rescue service.

The rates are comparable to those in the region, according to Fire Chief David Grunes, who recommended the increase.

For several years the rescue service has operated as an enterprise fund, independent of the municipal budget but subsidized by town funds.

“Ultimately the goal of the town is to have a self-sufficient ambulance/paramedic service and to be less reliant on the tax levy,” Grunes said in a memo to the Select Board. Responding to a question from board member William Moonan, Grunes said the subsidy has slightly declined each year since the enterprise fund was established eight years ago.

Rates vary by category, depending on the level of personnel needed on the call. The current charges and approved increases, with the regional averages in parentheses, are:

• $1,532.52 to $1,563.17 ($1,543.11);
• $1,859.94 to $1,897.14 ($1,945.18);
• $2,734.76 to $2,789.46 ($2,793.38).

Grunes said he is projecting a $29,500 revenue increase for fiscal year 2022, but $20,500 of that results from increased ambulance runs due to more qualified staff.

The chief noted that for fiscal year 2020, Medicare reimbursements accounted for 53 percent of ambulance revenue. Another 2.6 percent came from Medicaid, and 7 percent from the Veterans Affairs Department (the VA has a ceiling on reimbursement). The remainder is billed.

Asked by board member Ed Pierce why Lexington’s rates are lower than those of other area towns, Grunes explained that Lexington has a higher call volume and also does not use enterprise accounting.

Mike Rosenberg can be reached at [email protected], or 781-983-1763