OFFICE OF EMERGENCY SERVICES - K. MANGANO, INTERIM

Approve Amendment #6 to the Agreement with American Medical Response which increases the rate of all charges by 20.3% and authorizes the Chair of the Board of Supervisors to sign the amendment.

SBC FILE NUMBER: 75.5

American Medical Response (AMR) has an agreement with San Benito County to provide Advanced Life Support and transportation services for the 911 system.  The agreement is effective July 1, 2019 - June 30, 2020.

Section 9.3 of the agreement allows the Contractor to adjust the base rate, mileage rate, oxygen rate, and emergency rate annually.   The rate increases shall be the greater of the following percentages:

1. Three percent (3%) divided by the average CONTRACTOR’S average collection rate from the current year in San Benito County.

2. The percentage calculated from the following Consumer Price Index (CPI) factors divided by the CONTRACTOR’S average collection rate from the current year.  The Department of Labor, Bureau of Labor Statistics CPI as of the previous twelve (12) month period for which published figures are then available for San Francisco-Oakland-San Jose shall be used to calculate the following percentages from CPI (which shall then be added together and divided by the average collection rate):

• 2.33%  percent of the CPI – Transportation Index
• 81.33% percent of the CPI – Medical Care Index
• 16.33% percent of the CPI – All Item Index

In accordance to the provisions in Section 9.3, Contractor submitted its request to the County to increase rates for 2020 by 20.3%.  This increase request follows the Rate Increase guidelines outlined in the agreement. The increase will allow AMR to remain fiscally stable as they continue to make system enhancements that will translate to improving services to the public.   This increase will have no affect to the County EMS budget as it only applies to the rates incurred for services rendered to patients for transport serves originating in San Benito County. 

The Emergency Medical Services Agency respectfully requests the following:

1.  Approve Amendment #6 to the Agreement with American Medical Response which increases the Base Rate, Mileage Rate, Oxygen Rate, and Emergency Rate by 20.3%, and;

2.  Authorize the Chair of the Board of Supervisors to sign the amendment.