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PA: Municipal funding could be key to keeping the McCandless-Franklin Park Ambulance Authority afloat

5 Jul 2024 9:13 AM | Matt Zavadsky (Administrator)

Another example of EMS agencies struggling under the current economic model. Skyrocketing costs and stagnant revenues are taxing current service levels.

Municipal funding could be key to keeping the McCandless-Franklin Park Ambulance Authority afloat
2022 was the first year the authority didn't operate in the red, due to contributions from McCandless
LAURA ESPOSITO AND CIARA MCENEANY
June 30, 2024
 
https://www.post-gazette.com/news/social-services/2024/06/30/ems-mccandless-franklin-park-ambulance/stories/202406270110
 
Fiscally, the sole ambulance authority that covers five municipalities and 64 square miles of Allegheny County walks on soft cement.
 
At least, that's how Chief Chris Dell describes it. He took the helm at McCandless-Franklin Park Ambulance Authority, or MFPAA, in 2022, when the threat of disbandment was looming even more prominently over the EMS system than it is now. 
 
Since then, Chief Dell has implemented cost-cutting measures, applied for numerous grants, and the ambulance authority has even earned national accreditation, the gold standard for first responders that less than 1% of EMS agencies earn nationwide.
 
From the outside, it all seems to be paying off for the MFPAA — 2022 was the first year in roughly half a decade it operated above the red line, making a modest gain of less than $5,000. While they've yet to receive their 2023 audit, Chief Dell said that internal reports indicate another year of financial gain for the organization.
 
But there's another factor, one out of Chief Dell's control, that now determines both profitability and the capabilities of the ambulance authority: municipal funding. 
 
Like a growing number of EMS systems nationwide, the MFPAA, which answers about 9,000 calls annually, now relies on leaders from the areas it serves to keep it afloat. And while local municipalities acknowledge the need for ambulances, they don't necessarily want to pay for them. 
 
"You can't blame them. They were able to get the service for free for so many years," Chief Dell said. "But municipalities are going to have to support their EMS agencies as they expect them to survive."
 
According to the Center for Rural Pennsylvania's 2022 survey of Pennsylvania EMS agencies, 32% of urban and mixed EMS agencies that serve urban and rural counties said they did not receive municipal funding.
 
And nearly two-thirds of urban and mixed EMS agencies also reported one or more budget deficits from 2018 to 2022.

 
Chief Dell said community members are often surprised to know that, unlike police departments, many EMS agencies, such as the MFPAA, aren’t funded by their municipalities. 
 
Since its creation four decades ago, the ambulance authority's revenue has accrued from three sources: fees for services, a subscription program and community donations. 
 
"[But now] everything that we do costs a lot more money than it used to," Chief Dell said. 
 
For example, Chief Dell said, the recent purchase of an ambulance without equipment costs upward of $300,000 — more than double what it was a decade ago. The EMS system has five ambulances, and because of their robust volume of calls, they are on pace to purchase a new one every year, he said.
 
This year, McCandless officials set aside a $110,000 contribution to the MFPAA, the first time money for EMS was included in the town's budget. McCandless spokesman John Bojarski wrote in an email to the Post-Gazette that the town allocated the funds to "ensure that this crucial service continues to be provided to our residents."
 
"The town is aware of recent funding challenges facing the McCandless-Franklin Park Ambulance Authority and other ambulance providers throughout the region,” he wrote. 
 
"We acknowledge the importance of providing professional ambulance coverage for our residents." 
Franklin Park was already making contributions to the MFPAA but increased its funding, according to council meeting minutes from March.
 
However, the remaining municipalities — Pine, Marshall, and Bradford Woods — weren’t as quick to dole out funding.
 
“Pine has requested additional information regarding the cost of idle time before they make any further commitment. Marshall and Bradford Woods do not have any interest in paying or having a board seat,” according to council minutes.
 
After lengthy debate, $277,000 was allocated to the MFPAA for 2024 from all five towns. The agency originally asked for $350,000, but Chief Dell said he could work with that number. 
 
"Had we not had the municipal support fund that we've gotten so far for the year, we would be operating at a loss or right around break-even," he said.
 
While the three municipalities committed to making only a one-time contribution, Chief Dell said he’s optimistic that once MPFAA leadership is modified, that will change. 
 
The board consists of five representatives from McCandless and two from Franklin Park. 
 
"The one-time contribution is dependent on having representation and having a say in the municipal MFPAA budgeting process in 2024, which makes sense," he said. "We believe that's a fair thing."
 
He's optimistic the one-time contributions will turn into annual payments as the MFPAA continues to meet and address concerns from unrepresented municipalities. 
 
Nationwide Problem
While disbandment and consolidation of EMS services are common nationwide, they have hit the Pittsburgh region especially hard. 
 
Last July, Jeannette EMS shut down all operations primarily due to "financial issues," according to a Facebook post.
 
It urged people throughout the region to contact their government representatives to work to save EMS services, cautioning that more emergency services are also at risk of disbandment.
 
"We are sadly not the first service to have this happen to us, and we will unfortunately not be the last," the statement reads.
 
"The biggest hit to not only us but to any ambulance service is the poor reimbursement rates the insurance companies pay out, and with that, we can unfortunately no longer provide services to the City of Jeannette." 
 
Aside from municipal funding, advocates have argued that additional funding from the state could curb the closures.
 
But many organizations have trouble securing funding because they are trained to provide emergency care, not fundraise, said Ralph Serphe, president and CEO of the Adams County Community Foundation, which created the WellSpan Emergency Services Fund to support Adams County nonprofit EMS agencies with professional services, start-up funding and project developments.
 
And a lack of secure funding ripples throughout an organization, leading to high employee turnover.
 
According to the National EMS Advisory Council 2023 report, EMT’s are paid almost a third less than most working Americans, with agencies seeing turnover rates of 20% to 30% annually. 
 
Agencies that participated in the Center for Rural Pennsylvania’s 2022 survey said that pay and benefits, combined with the demands of the job, were major reasons providers left their posts.
 
“EMS services are a public good, and they should be supported by tax dollars,” Mr. Serphe said. “The business model of small, independent, all-volunteer EMS providers just doesn’t work anymore. We’re asking a shrinking pool of dedicated volunteers to do more and more. 
 
“That time pressure, along with the increased cost of regulation, training and equipment, demands a workable solution.”
 
Chief Dell echoed his concern and said there are only so many grants ambulance authorities are eligible for and have time to apply for. Nearly 90% of a $30 million grant program from the state is allocated for fire departments, the rest is reserved for EMS.
 
"They get a much larger share of all grant money, but when you look at actual call volume, ambulance services do a lot more calls than fire departments," Chief Dell said.
 
Nationally, the EMS Advisory Council urged federal departments in its 2023 report to address pay gaps and limited funding opportunities that exist among the EMS industry compared to other public services, such as law enforcement and fire services. 
 
The council wrote in the report that it is essential that EMS agencies have their own grant and funding opportunities that are available to “all EMS service delivery models,” along with being considered essential services on a national, state and local level. 
 
"In reality, agencies have worked hard to do everything they can to reduce costs and to come up with unique or better funding streams and we're coming up with a shortfall — we're asking for municipal support,” Chief Dell said.  
 


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