An Internationally Accredited Fire Service Agency! EMS Transport Fiscal Analysis Jim Moye, Chief Deputy Comptroller Orange County Fire Rescue Department

An Internationally Accredited Fire Service Agency!An Internationally Accredited Fire Service Agency!

EMS Transport Fiscal AnalysisEMS Transport Fiscal AnalysisJim Moye, Chief Deputy ComptrollerJim Moye, Chief Deputy Comptroller

Orange County Fire Rescue DepartmentOrange County Fire Rescue Department


BCC Minutes ReviewBCC Minutes Review

On October 9, 2007, the Board decided that On October 9, 2007, the Board decided that Orange County Fire Rescue would expand Orange County Fire Rescue would expand its EMS transport services, effective its EMS transport services, effective October 1, 2008, into the area of October 1, 2008, into the area of unincorporated Orange County currently unincorporated Orange County currently being served by Rural Metro, subject to a being served by Rural Metro, subject to a fiscal review conducted by the County fiscal review conducted by the County Administrator’s Office and the County Administrator’s Office and the County Comptroller’s Office.Comptroller’s Office.


Financial AnalysisFinancial Analysis

• Fiscal Review Conducted by Fiscal Review Conducted by – County Administrator’s OfficeCounty Administrator’s Office– County Comptroller’s OfficeCounty Comptroller’s Office


• 15 Fire Department Rescues15 Fire Department Rescues

• Transport in 60% of the CountyTransport in 60% of the County– 22,000 Transports22,000 Transports– Approximately $5 M in Revenues Per YearApproximately $5 M in Revenues Per Year

Current OCFRD Transport AreaCurrent OCFRD Transport Area


Current RMA Contract AreaCurrent RMA Contract Area

Rural Metro Ambulance AreaRural Metro Ambulance Area

• 9 Fire Department Rescues Back up RMA9 Fire Department Rescues Back up RMA

• 5 Additional Rescues Requested5 Additional Rescues Requested

• Approximately 21,000 TransportsApproximately 21,000 Transports



• Scenario #1Scenario #1 - Rural Metro - Rural Metro– Uses Rural Metro Figures Uses Rural Metro Figures

• Projected Number of TransportsProjected Number of Transports• Revenue Per Transport Revenue Per Transport • Expenditure Projections Expenditure Projections

– Projected Revenue Projected Revenue = = $21.5M$21.5M

– Projected Expenditures Projected Expenditures =(=($15.5M)$15.5M)– Surplus/Shortfall Surplus/Shortfall = $ 6.0M= $ 6.0M



• Scenario #2 – Worse CaseScenario #2 – Worse Case– Uses OC Transport Projections Uses OC Transport Projections

• 1-year OC Historical 1-year OC Historical • No Growth in Revenue Per TransportNo Growth in Revenue Per Transport• No Growth in Number of Transports No Growth in Number of Transports • Amount For The Zip Codes Amount For The Zip Codes • Within The Rural Metro Coverage AreaWithin The Rural Metro Coverage Area

– Projected Revenue Projected Revenue = $25.0M= $25.0M– Projected Expenditures Projected Expenditures = (= ($13.4M)$13.4M)– Surplus/Shortfall Surplus/Shortfall = $11.6M= $11.6M



• Scenario #3 – Expectation Scenario #3 – Expectation – Uses OC Transport Projections Uses OC Transport Projections – 1 Year OC Historical Revenue Per 1 Year OC Historical Revenue Per

Transport Transport • With An Add'l 1.5% Increase P/YearWith An Add'l 1.5% Increase P/Year

– For The Zip Codes Within The Rural Metro For The Zip Codes Within The Rural Metro Coverage AreaCoverage Area

– Projected Revenue Projected Revenue = $27.1M= $27.1M– Projected Expenditures Projected Expenditures = (= ($13.4M)$13.4M)– Surplus/Shortfall Surplus/Shortfall = $13.7M= $13.7M



• Stress Test Zip Code Stress Test Zip Code – Eliminate two highest percentage Eliminate two highest percentage

collection rate zip codes collection rate zip codes – Results Before Stress – 56% Results Before Stress – 56% – Stress Yields – 45% Stress Yields – 45%

ExpectationExpectation– Projected Revenue Projected Revenue = $21.4M= $21.4M– Projected Expenditures Projected Expenditures = (= ($13.4M)$13.4M)– Surplus/Shortfall Surplus/Shortfall = $8.0M= $8.0M



• Stress Test Collection Percentage Which Stress Test Collection Percentage Which Yields a Five-Year Break EvenYields a Five-Year Break Even

– Scenario 1 (Rural Metro) – 35.8%Scenario 1 (Rural Metro) – 35.8%– Scenario 2 (Worse Case) – 30.7%Scenario 2 (Worse Case) – 30.7%– Scenario 3 (Expectation) – 28.3% Scenario 3 (Expectation) – 28.3%


Action RequestedAction Requested

Final Approval to Allow Orange County Final Approval to Allow Orange County Fire Rescue to Expand its EMS Fire Rescue to Expand its EMS Transport Services in to the Area of Transport Services in to the Area of Unincorporated Orange County Unincorporated Orange County Currently Being served by Rural Metro Currently Being served by Rural Metro Ambulance Effective October 1, 2008.Ambulance Effective October 1, 2008.

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An Internationally Accredited Fire Service Agency! EMS Transport Fiscal Analysis Jim Moye, Chief Deputy Comptroller Orange County Fire Rescue Department