Patients who receive ambulance transport or emergency medical services from the Seward Volunteer Fire and Rescue Department will also receive a bill beginning in October.
The new protocol could generate $350,000-$380,000 for the department each year, based on its average 700 call volume.
SVFD Assistant Chief Dan Brumm addressed the Seward City Council Aug. 2, when the decision was finalized.
“It has not yet been decided what the funds will be spent on,” Brumm said.
The council previously considered whether to charge for rescue calls at a June meeting but tabled the matter to be sure its contract with the billing company, One Billing Solutions, was clear: the city does not intend to send any unpaid bills to collections. Therefore, One Billing will not receive a portion of those balances.
“Absolutely, they understand this. They expect that there will be no collections on this,” City Administrator Greg Butcher said, adding that most communities that bill patients do not collect on outstanding balances.
Beginning Oct. 1, when a patient uses rescue or ambulance services through SVFD, the department will send a list of services rendered to One Billing Solutions, who will then bill the patient’s insurance company.
If a patient is not insured or the insurance company covers only part of the cost, the patient will receive a bill for the rest.
The patient will receive two bills – an initial statement and a follow-up notice if it isn’t paid. Then, nothing more.
The city decides whether it wants to pursue collection of unpaid bills, and the council decided it wouldn’t send any of them to collections.
“It is completely within our control,” whether to collect or not, Butcher said.
The decision not to collect will apply to all patients – the city or SVFD will not pick and choose who gets billed.
The money from the bills that do get paid will go into a sinking fund for the fire department, separate from the department’s existing fund under the city, but still a part of the city’s budget.
“We want to place them in a very specific fund so they can be tracked,” Butcher said.
Since the funds are considered government funds, the council – not the fire department itself – will have final control over how the money gets spent.
However, Butcher said once the funds are in the account designated for the fire department, they cannot be allocated to any other department, and SVFD will still decide how to spend them.
“It sits there in its own fund until the fire department tells us they need it,” Butcher said.
The department has several ideas for what the funds could be used for, including expanding the fire station, purchasing new trucks or ambulances as needed or offering stipends to the volunteers who respond to calls.
“A lot of the expenses come in big chunks. This will help mitigate some of those costs moving forward,” Mayor Josh Eickmeier said.
A ladder truck, for example, can cost $1 million or more.
The funds generated by rescue calls will be separate from donations and from what the city already factors into its budget for SVFD each year.
“This change is going to be a surprise to some people,” Eickmeier said.
Council member John Singleton said he received feedback from some SVFD reserve members who had concerns about charging for calls.
Brumm said he received positive feedback from the community after the council’s June discussion.
“The vast majority of people I’ve talked to have said it’s about time,” Brumm said.
Council member Jessica Kolterman said she heard from a few who expressed similar support.
Those who receive a bill and have questions can contact the city at (402) 643-2928.
