Medstar trying to stem their own budget emergency ahead of busy holiday season

FORT WORTH - The Metropolitan Area EMS Authority in Fort Worth says the winter is its busiest season because the number of calls increases by as many as 20 per day.

However, the agency tells CBS News Texas that it recently faced one of its biggest budget shortfalls. But, thanks to some help, the company ended up coming up with a solution to stay afloat ahead of a busy winter season.

"We see a big challenge with funding out post COVID. We've seen pay rates increase, we've seen other expenses increase, and we've seen other EMS providers challenged with funding. MedStar is no different with that," says Ken Simpson, Medstar CEO.

According to Medstar CEO Ed Simpson, inflation is only one factor in the funding issues. For many of their patients, the company is not reimbursed by insurance. All of this resulted in Medstar's budget being $4 million higher than its annual revenue.

"That is a significant number. To give you an idea of what our total budget is, it's around $62 million. So, that's a that's a pretty big deficit," Simpson explains. 

Medstar was also not being paid by city and county inmates who needed to be transported. As a result, the City of Fort Worth and Tarrant County's JPS Hospital are stepping up to cover those costs. 

"So, we want to spend a lot more time looking at why people are being transported and to see if there's other ways to handle that expense," says Assistant City Manager Valerie Washington. "We, of course, know there's always going to be someone who is in need to transport. We're working with MedStar to make sure that we have a contract in place to handle those costs in the future," says Assistant City Manager Valerie Washington.

With the help of the city and county, Simpson says Medstar was able to pay off some debt and pass its 2024 budget without needing taxpayer dollars. He also says they have a system in place to send smaller groups of paramedics to low-priority calls. Therefore, the service could cut costs for both Medstar and patients from a $400 ambulance fee to less than $100.

"And from what we've seen, even from the patients, their level of satisfaction is much higher," Simpson adds, "It's a lot more cost-effective for us. So, rather than sending that $400,000 ambulance out there, we're sending an SUV and a single provider." Simpson adds that Medstar is nearly fully staffed and ready to tackle the busy winter ahead. 

The city of Fort Worth tells me they are currently doing a study to figure out the best path forward for emergency response systems. That study should be complete by this coming February.