"Business" of User Fees - US Fire Administration - Federal ...

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14charge this fee allow businesses a set number of false alarms per month or year beforethey incur any charges.New codes and economic prosperity has required fire departments to spend agreat deal of time reviewing fire protection plans for existing or new construction. Planreview fees have been developed to offset this time requirement and are usually basedon square footage. These fees can reach into thousands of dollars for large commercialoccupancies.A limited number of agencies have started charging for public educationpresentations, mostly to businesses. While this could be another source of revenue, itis not well accepted because of concerns that fees could undermine the goals of adepartment’s prevention and education program.With the advent of many fire departments providing emergency medical servicesmany have begun to charge fees to recover expenses related to providing basic oradvanced life support. Many of these agencies were already providing these services,which the private ambulance companies conveniently charged for. The United statesfire Administration has found that “as the demand for EMS has increased, jurisdictionshave begun to look for ways to offset some of the costs of operating EMS and thefirefighting infrastructure that supports basic and advanced life support services”(FEMA, 1993, p. 40). EMS fees are divided into two types - rescue and ambulancetransport fees. Many agencies that don’t provide ambulance transport still may chargea fee for rescue services in order to recover the cost of supplies and personnelexpertise. It appears though, that the most lucrative revenue source is in ambulancetransport. Fire departments have discovered that they can supplement a large portion
15of their revenue base through transport fees, and many times provide a higher level ofservice than the private ambulance companies. The largest payer of these fees ismedical insurance companies and Medicare or Medicaid. An interview with Captain D.Hall (personal communication, November 16, 1998) the Westminster Fire DepartmentEMS Officer revealed that for 1998 the department is projected to collect over $1 millionin ambulance transport fees. This is based on a 75% collection rate on approximately2500 transports. Ambulance transport fees incorporate a wide range of fees including:• Basic Life Support Treatment• Advanced Life Support Treatment• Mileage fee to the hospital• Oxygen• Spinal Immobilization• DisposablesOne concern with ambulance transport fees is that they can effect the people thatmay need an ambulance the most – the poor and elderly. These customers may nothave the means to get to the hospital, let alone pay for the ambulance ride. Somedepartments have initiated subscription programs to help alleviate this concern. It isironic that the “concept of subscriptions dates back to the early years of our nation,when firemarks on buildings indicated which fire service had been subscribed to, if any”(FEMA, 1993, p. 48). While the modern version of subscriptions still may be used forfire response, the new trend is for ambulance transport. Withers (1994) found thatSpringfield, Oregon Fire and Life Safety’s FireMed program was an example.
Page 1 and 2: THE “BUSINESS” OF USER FEES: A
Page 3 and 4: 3The major findings of this researc
Page 5 and 6: 5INTRODUCTIONThe “business” of
Page 7 and 8: 72. What are the benefits and probl
Page 9 and 10: 9The majority of Westminster’s re
Page 11 and 12: 11sharing, lease/purchasing, subscr
Page 13: 13revenue source and as a way to ga
Page 17 and 18: 17There are many other miscellaneou
Page 19 and 20: 19Much of the litigation involving
Page 21 and 22: 21Establishing a billing program ca
Page 23 and 24: 23were thought to be progressive or
Page 25 and 26: 25The research identified user fee
Page 27 and 28: 27Competition for customers is pitt
Page 29 and 30: 29community, city administration, C
Page 31 and 32: 31Manion, K. (1996). Fee Based Serv
Page 33 and 34: User Fee Type (con’t):Public Educ
Page 35 and 36: WESTMINSTER FEE SURVEY B-2Colo Spri
Page 37: WESTMINSTER FEE SURVEY B-4Poudre So

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