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Home My WebLink About(1) AMBULANCE INSURANCEinteroffice MEMORANDUM To: Mayor, City Council, City Manager From: Mark T. Sokolow, City Attorney Date: April 9, 2002 Subject: Report on Ambulance Insurance Requirements April 16, 2002 Council Meeting On the April 16, 2002 agenda, there is an item pertaining to ambulance insurance requirements. Representatives of the ambulance companies would request that they be given an opportunity to discuss this issue with you. MTS/ts Attachment: April 4, 2002 letter to ambulance companies April 9, 2002 response from Goldstar Metrocare and cc: Fire Chief April9,2002 City of Port Arthur Mr. Mark T. Sokolow City Attorney P.O. Box 1089 Port Arthur, Texas 77641-1089 RE: Reduction of Ambulance Insurance Requirements During the March 5, 2002 city council meeting, MetroCare EMS and Goldstar EMS presented a detailed impact presentation of the new Medicare fee schedule, which began April 1, 2002. A portion of this presentation addressed the financial burden often million dollars ($10,000,000.00) in liability and malpractice insurance currently required by the City of Port Arthur, Texas. As you may recall from the presemation, the cities in the area surrounding Port Arthur require a substantially lesser amount of liability and malpractice insurance. The amounts required by city ordinance for the surrounding areas are quoted below. Nederland - 1. For damages arising out of bodily injury to or death of one person in any one accident,($300,000.00.) 2. For damages arising out of bodily injury to or death of two or more persons in any one accident,($500,000.00). 3. For any injury to or destruction of property in any one accident,($50,000.00.) Groves - a. For damages arising out of bodily injury to or death of one (1) person in any one (1) accident, three hundred thousand dollars ($300,000.00). b. For damages arising out of bodily injury to or death of two (2) or more persons in any one (1) accident, five hundred thousand dollars ($500,000.00). c. For any injury to or destruction of property in any one (1) accident fifty thousand dollars ($50,000.00). Port Neches - a. For damages arising out of bodily injury to or death of one person in any one accidem, three hundred thousand dollars ($300,000.00). b. For damages arising out of bodily injury to or death of two (2) or more persons in any one accident, five hundred thousand dollars ($500,000.00). c. For any injury to or destruction of property in any one (1) acddem, fifty thousand dollars ($50,000.00). Beaumont - 1. For damages arising out of bodily injury to or death of one person in any one accident, one hundred thousand dollars ($100,000.00); 2. For damages arising out of bodily injury to or death of two (2) or more persons in any one accidem, three hundred thousand dollars ($300,000.00); 3. For any injury to or destruction of property in any one accident, twenty five thousand dollars ($25,000.00). The Texas Department of Health regulation requires "a certificate of insurance with the Texas Department of Health named as the holder or evidence of financial responsibility per Texas State Law". The financial burden of a ten million dollar liability and malpractice insurance requirement is simply not warranted and excessive. Attached please find copies of MetroCare's and Goldstar's loss mn reports. We urge the City Council to re-evaluate and consider the real exposure and implement an insurance requirement of five hundred thousand dollars ( $500,000.00 ) which reflects the highest requirement of the neighboring cities, NOT T}IE TEN MILLION DOLLARS ($10,000,000.00) WItICIt IS TWENTY (20) TIMES TBE AMOUNT REQUIRED BY ANY OTHER CITY IN JEFFERSON COUNTY, TEXAS. Respectfully, For: MetroCare EMUS_ gti~t~h-e'n'g. Diamond President For: Goldstar EMS Ralph D. (frail CEO ARTICLE II. AMBU-LANCES* *Editor's note--Ord. No. 78-2, adopted Jan. 3, 1978, has been codified as superseding Art. II, §§ 29-20--29-28. Former Art. II pertained to ambulances and was derived from Code 1958, §§ 4-1-- 4-9. Sec. 29-20. Definitions. [As used in this article, the following terms shall have the respective meanings ascribed to them:] Ambulance. Any vehicle used, designed or redesigned for the purpose of transporting the sick or injured. Ambulance permit. The permit issued under section 29-22 of this article. Basic life support ambulance. A vehicle that is used, designed or redesigned for transporting the sick or injured and that has sufficient equipment and supplies for providing basic life support. Health authority. The city manager of the City of Beaumont or his designee. Street. By the term "street" is meant the entire width between the boundary lines of every, way publicly maintained when any part thereof is open to the use of the public for purposes of vehicular travel. (Ord. No. 78-2, § 1, 1-3-78; Ord. No. 78-65, § 1, 6-6-78; Ord. No. 85-82, § 1, 8-13-85) Sec. 29-21. Operating ambulance without permit. No person shall drive or operate an ambulance for the purpose of transporting the sick or injured for hire upon the public streets of the City of Beaumont unless there is attached to the windshield of such ambulance a valid ambulance permit issued for such ambulance by the health authority. There shall be exempted from the provisions of the permit and license requirements of this article those ambulances who transport persons from a location outside the City of Beaumont into the City of Beaumont; those ambulances who pick up a person inside the City of Beaumont and transport said person outside the City of Beaumont; and those ambulances who transport persons only through the city of Beaumont. (Ord. No. 78-2, § 1, 1-3-78; Ord. No. 79-24, § 1, 3-27-79) Sec. 29-22. Ambulance permit; application. Every person, partnership or corporation desiring to obtain an ambulance permit shall make application in writing on a form provided by the city for that purpose to the health authority. Such application shall contain the name, address, and telephone number of the applicant, the owner of the ambulance for which the permit is to be issued, and the address and telephone number of the location from which ambulance service will be originated. The application shall also show the make, model, motor number, and correct state license number of the ambulance for which a permit is being requested. Every application when filed shall be sworn to by the applicant and shall be accompanied by a permit fee of twelve dollars ($12.00). No permit shall be transferable and every permit shall expire one year from the date of issuance. (Ord. No. 78-2, § 1, 1-3-78) Sec. 29-23. Conditions for issuance of ambulance permit. No ambulance permit shall be issued: (a) Insurance. Unless there is full force and effect a policy or policies of public liability and property damage insurance, issued by a casualty insurance company authorized to do business in the State of Texas, and in the standard form approved by the board of insurance commissioners of the State of Texas, with coverage provisions insuring the public from any loss or damage that may arise to any person or property by reason of the operation of the ambulance for which the permit is issued, and providing that the amount of recovery shall be in limits not less than the following sums: (1) For damages arising out of bodily injury to or death of one person in any one accident, one hundred thousand dollars ($I00,000.00); (2) For damages arising out of bodily injury to or death of two (2) or more persons in any one accident, three hundred thousand dollars ($300,000.00); A~.nr un¢~- There i~ {n Full force lad c~?ct a policy or policies of public !lability m do 5x~smcs~ in the Stat~ of Texas, znd in thc st,md,~'d fi~nn approved bp Ibc reason nf thc optrm~on of ibc ambulance for which the ~i~ is issued and providing 1 Fur d~n~s ~risin~ out o[~i1~ ~j~ [o or death oFone person in any one ~ccidcm, 2 F.r damages arising ot11 of~dily inju~ lo or death of two or more persons in any one accideat, $500,00000. 3.For any inju~ lo or destmctlon of property in my on~ accident, $SO,000.O0; B ~31~ I'enml- I he npptic~t h&* ~cn issued a ~it by thc Statc Bo~d of C A cu~cnt ~ta[e ~specnon sticker is displayed on ~he wb~dsh~cld of the ~ehiclc; D Pcrm~ent Imcmc pb~es arc prombenlly dispbycd on ~lh front ~d mar of thc k '1 he vehicle has a vehicle numar prominently displaycd on ~th fron~ and rear fluancr p~eIs; and F The company name b prominently displayed on ~lh ~ECTION 4 As ~ mb:.,'num requirement, cvcr'y ~nbula.n¢¢ for which an ambullnce perm~l is issued shall be equipped with Ih~ following: A MC ~i¢;tkkq.~lipment 1. All equbment now or hereat~¢r required by the ~les ~d regulations ofthe fexas Dcpmmcm oflleahh tbr a State ambulance pcmil I All cqulpment now or hereafter rcquked by thc [cxas Motor Vehicle Laws governing aud~Or~ed e~ergcncy ~ehlcles, s^-2 i,OWr ,,q~.clizs coDZ ~ (3) Tho use of ground er air transfer vehicles, including basic Iif~ support vehicles, to transport sick or injured persons in a casualty situation that exceeds the basic vehicle capacity or capability of emergency medical services pro- ¥idcrs in thc ares; (4) And industrial emergency medical service vehicle; (5) A physician, registered nurse, or other health care prac- titloner licensed by thle state, unless the health care practitioner staffs an emergency medical services vehicle or [on] a for hire basis for respondieg to medical emer- gencies; (6) EMS vehicles which transport clicnt~ from a location outside thc City of Port Neches into the city and who transport clients only through the city. (Ord. No. 1996-20, § 2, 11-7-96) Sec. 6A-3. EMS permit; npplication; conditions of issu- (al Every person, partnership or corporation desiring to obtsin an EMS vehicle permit shall make application in writing on a form provided by tho city for that purpose to thc fire chief. Such application shall contain the name, address and telephone num- ber of the applicant; the owner of the EMS vehicle for which the permit is to bo issued, and the addro.~s lind telephone number of the location of the EMS Provider where service will origin ate. The application shall also show the make, model, motor numoer an correct state license number of the EMS vehicle for which a permit is being requested. Every application, when i~led, shall be sworn to by the applicant and shall be sccompaniod by a permit ' ~'-n dollars ($10 0§). The EMS Provider requesting a permit ~.~/ me m~.u .~ .~ ' ...... ~t tele~honc number ortho licensed shall arno prowuo ~ne. ............. · .hysician who will be providing medical supervision of pre- ~os'pital care. No permit shall be transferable, and every permit shall expire annually from the date of issuance. (b) No EMS permit shall be issued: (1) Insurance: Unless there is in full force and effect a policy or policies of public liability and property damage insur- ~upp Ne. SS 96,28 ~o. ~/~.~. EMS l~rmit4 appUcation; Conditions of is~u. Every pernont pm'tnendfip or corporation de~ to obtnlw an EMS vehicle permit ~ make nppUcntion in writing on a from provided by the d~ for that purpose to the fL-e chief. Such application shall contain the name, address end telephone num- ber o~ the applicant; the owner of the EM~ vehicle for which the pern~t in to be issued, and the address and telephone number of the location oft~e EM,.q provider where service wO] or~ginnto. The appUcAtion shad] lbo show the msdre, model, motor number and correct .ute Uceuo number of t~e EMS vehicle fo~ which a permit is be/ag requested. Every &ppUcation, when filed, shall be sworn to by the applicant and shall be accompanied by a per~dt fee of ton doUare ($10.00). The EMS provider requesting a permit Sh~U also prm.ide the name and tolephane number of the Ucensed pb~ician who will be provicUng medical supervision of pre- hospital cn~e. No permit shall be t~nsf~rshle, and ~very permit shoU ~xpire --~ually ~rom the data of issuance. No gMS permit shall be issued: (1) .rnfuraflc~. l.l~esl there is in f~! force ~,~d effect a peUc-y nr policies of pubUc UabUlty smd properly damage ~ since, issued by a casualty immrtuce coml~ny anthorized to do business in the at. to, and in the .tnndard form approved by the board of inoursmco commissioners of tiM state, with coverage provolone insuring the pubUc f~m sm,y Io~. or damage that may tries to uny' person ~ property by Fearon of the ojMretion of the EM~ vehicle for Supp. No. 85 384 Ilil THE IN.SUI~NCE PROFESSIONALS, INC. To: Besupre Insurance Services Re: ~ I~M$. Inc. Policy llffecgve Dale: $/19100 Policy ]~q~irafio~ Date: $/19/01 Policy ~r22373696 (Commercial Auto) / #223732701 (G-e~eral/Pro fessiolM1 Liability) #22373271 $ (Prope~t) / #220161716 (Umb[eUa} (Auto/GL/Plerty)L~ Compasay: Nat/onal Fire Imurmace Company of I-lartfbrd Continental Caaualty Compeny (U'mbrells) i For cuzle~ lou hms on the sbeve-m,.-ntio]3<xl ~¢ott~ts, ple~c bc idviae~ ~ no Iosaes were fomad an this riik ss o£03/11/02. This is not to be construed as aa I~bmolutc stalemcalt of no claims, only that no loss hislmy Ima been located at thil ~me. GoldStar E2VI.S. 04/09/02 To: From: Mark Sokolow City of Port Arthur Ralph Crall CEO GoldStar EMS Dear Mark: To the best of my recollection GoldStar EMS has had no more than 6 accidents over the past four years. The highest claim amount has not exceeded $20,000.00. If you need additional information please give me a call at 409-982-9191. I will forward the loss nm reports to you by the end of this week. Sincerely, Ralph Crall CEO GoldStar EMS Business Office 4439 Gulf~ray Drive Fax Ntmaber 1-409-982-9191 Port Arthur, Texas 77707 1-409-985-4466 OSCAR O. 0RTIZ, MAYOR FELIX A. BARKER, MAYOR PRO-TEM COUNCIL MEMBERS: CRAIG HANNAH THOMAS J. HENDERSON TOM GiLLAM, III REV. RONNIE LINDEN BOB BOWERS ROSE MITCHELL CHAISSON ROBERT E, ALLEN City of Texas STEPHEN FITZGIBBONS CITY MANAGER CAROLYN DIXON CITY SECRETARY MARK T. SOKOLOW CITY ATTORNEY April 4, 2002 VIA FACSIMILE (409) 985-4466 Ralph Crall GOLDSTAR EMS 4439 Gulfway Drive Port Arthur, TX 77642 VIA FACSIMILE (409) 842-1656 Stephen Diamond, President George Knupple, Vice President METROCARE EMS 4770 Washington Boulevard Beaumont, TX 77707 VIA FACSIMILE (713) 795-0447 Clifford Brooks, Jr. AMSTAR AMBULANCE GROUP PORT ARTHUR, 2010 Naomi Street, Suite C Houston, TX 77054 INC. Re: Ambulance Insurance Requirements Gentlemen: The present insurance requirements are the following: So Commercial General Liability Insurance in the amount of $1,000,000; Comprehensive Auto Liability Insurance in the amount of $1,000,000; and Medical Malpractice Insurance in the amount of $10,000,000. There has been a request that these insurance requirements be lowered. FO. BOX 1089 · PORT ARTHUR, TEXAS 77641-1089 · 409/983-8115 · FAX 409/983-8291 In order to re-evaluate the insurance levels, can you please provide to the City the number of claims and type of claims made against you and the amount of monies that claimants have requested from you? The issue is the nature of the real exposure and what are reasonable insurance requirements. This issue will be discussed at the Council Meeting of April 16, 2002. Sincerely, Mark T. Sokolow City Attorney MTS/ts cc: Fire Chief