EMS System Review - State of New Jersey

State of New Jersey, DHSS, OEMSConsulting Services: EMS System Reviewavailable for the NJSP. Examining the annual revenue/expense margin for JEMSTAR revealedthe following (Table 8):RevenueRevenueTotal RevenueTable 8: Current Revenue Model for JEMSTARJEMSTAR CostsAvg. CommercialTransport Cost$9 million received from car registration($2 million for EMS helicopter services)$1,337 X 1700 patients transported =$2.27 million (potential) X60% collection rate = $1.36 million$10.36 million annually$10.36 million/1700 patientstransported = $6,095 per transport$10,000Based on the above information, it appears that the current JEMSTAR system iseconomical to operate. Consideration should be given to the following changes in the program:Reallocate the vehicle registration fee from $3.00 per registration fee for NJSP Aviationto $1.50 per registration to NJSP and $1.50 per registration to the EMS system.Remove the $2 million dollar stipend for the EMS services.Allow the JEMSTAR EMS provider to charge the prevailing Medicare rate to all patients($5,380 at time of writing).This reallocates funding as follows (Table 9):Table 9: Reallocation of JEMSTAR Funding ModelRevenue $9 million total $4.5 to NJSP and $4.5million to NJDEMS.Revenue $5,380 X 1700 patient transports =$9.15 million X 60% collection rate =$5.5 million to be allocated to theJEMSTAR providersTotal Revenue$14.5 millionJEMSTAR Costs$14.5 million/1700 patienttransports = $8529 per transportThis is still economical and allows for shifting of resources to where they are needed.Reallocation of this funding will allow for growth of the New Jersey EMS System and fairlycompensate the JEMSTAR providers while remaining cost effective.One confounding variable to consider is the status of CMS Medicare reimbursement forhelicopter transport. There are rumors (but no solid evidence) that CMS may tightenreimbursement for helicopter transports. Guideline such as those already in place by New JerseyTriData, a Division of 104September 2007System Planning Corporation