Merced Fire needs more funding. City considering first responder fee as possible source

Merced leaders are poised to consider adopting a first responder fee that Merced Fire Department officials say would help ensure the quality of emergency medical services to the community.

No official action was made to implement the proposed fee Tuesday, but city staff are expected to return to the City Council with a resolution at a future date. Residents and city leaders will have the chance to discuss the fee prior to the ouncil’s official vote.

“The call volume has drastically increased,” Merced Fire Department Chief Derek Parker said Tuesday while pleading the department’s case to the City Council. “As time has gone on, we have gone to more medical requests.”

Back in 2003, the city fire department responded to 4,289 calls. About 44% of those were emergency medical service responses. Last year, the department responded to 12,084 calls, with 61% being medical in nature.

Although responding to medical emergencies is an expected service from the Merced Fire Department, answering medical aid requests isn’t technically a statutory obligation, but rather a secondary service that has historically lacked a consistent funding source. The department’s primary duties are responding to and preventing fires.

Yet those secondary services continue to account for a higher percentage of the fire department’s daily activities. Parker said projections for 2022 put the department at an estimated 13,000 total calls for service with nearly 75% of those requests relating to emergency medical services.

“We want to continue to operate and provide service to the community,” Parker said.

But as those requests rise, so too does the fiscal impact on Merced Fire Department. To continue responding to calls, city officials say a consistent and reliable revenue source must be generated.

How would a first responder fee impact Merced residents?

Merced Fire Department officials on Tuesday requested to begin medical billing to acquire alternative resources supporting emergency medical requests. The request came after conducting a first responder fee feasibility study, written by consultant AP Triton.

The proposed fee is currently priced at about $610 per emergency medical service incident. The cost would be billed directly to private insurance.

Per protection of the law, the fee wouldn’t apply to people with Medicare or Medi-Cal, which make up a majority of Merced residents. Parker said the department also isn’t seeking to bill individuals who pay their medical bills privately.

“We’re not trying to be a burden,” Parker said.

Only about 9.9% of City of Merced residents have commercial insurance according to the feasibility study, meaning a majority of residents wouldn’t be affected by the fee.

Dollars generated from the fee is expected to create about $350,000 in revenue for the department annually. Those funds would go toward advanced life support education, equipment and pay for employees.

“Our goal is to put this money to good use and help the people of the community,” Parker said.

Merced residents, city leaders debate fee

Along with his colleagues at the dais, Merced Mayor Matt Serratto voiced his support for the fire department’s request.

“Medical care is an enormous deal in our city,” Serratto said. “One of the top complaints about Merced is the poor quality of medical care. We hear about it all the time.”

They mayor said the first responder fee is one way the city could help improve the quality of local emergency services. “Who knows how many lives would be lost if we didn’t provide this service,” he said.

If approved by the council at a later date, the fee is expected to be accompanied by a compassion waiver policy that would exclude individuals unable to pay on a case-by-case basis.

While Merced officials appeared generally receptive to the department’s request, some residents aired concerns about the fee potentially dissuading those in peril to call 911 due to fear of racking up lofty medical bills.

Noting the risk of COVID-19 and the monkeypox virus, resident Pangcha Vang said it would be irresponsible to impose an additional fee upon residents who are already concerned about inflation and the possibility of an economic downturn.

“Adding a first responder fee will actually hurt our residents and discourage them from calling 911 during medical emergencies,” Vang said, echoing the concerns of other residents, including some members of the medical provider community.

Despite the concerns, the council appeared generally united in its support of the proposed fee. While noting their support, city officials referenced the compassion waiver and that the fee would only apply to individuals with private insurance.

“We’re not going after people who can’t afford this,” Councilmember Fernando Echevarria said. “This is just a way for us to direct the funds appropriately and maybe make future investments to alleviate the issues that we’re having.”