November 19 2016 Newspaper

Page 1

PINE BARRENS TRIBUNE www.pinebarrenstribune.com Bass River

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Medford Lakes

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November 19-25, 2016

Southeastern Burlington County's News Leader

Vol. 1- No. 12

Washington

Southampton Holds Meeting To Discuss Future of Hampton Lakes Emergency Squad By Douglas D. Melegari Staff Writer

SOUTHAMPTON–The Southampton Township Committee met on Wednesday (Nov. 9th) to hear from Kit Applegate, an attorney who represents the Hampton Lakes Emergency Squad. Applegate provided a comprehensive update on the squad’s finances and organizational structure. He said that the squad revised their bylaws and organized a board of trustees. Applegate formally introduced Trish Winters, JoAnn Schwartz, and Richie Shaw as the three members on the newly constituted board. Applegate also introduced the new president, treasurer, and certified public accountant of the organization. He then discussed the bid which the township awarded to the squad. He explained at length how the bid says that there was not going to be any support from the township to the squad while also indicating that the organization would not be able to bill patients. Applegate said that it can’t be both ways under the federal Anti-Kickback Statute. “When we were here last I had indicated that under the bid that was put out by the township, it indicated that there was not going to be any support to the emergency squad and it also indicated that the winning bid would not be able to bill patients for any copays or deductibles,” Applegate said. “As I indicated in my June meeting, that would run afoul of the Anti-Kickback Statute in the Medicare regulations. I pointed out to the members of the committee that there was an OAG (Office of Attorney General) advisory opinion that actually indicated that a township could not direct an emergency squad not to bill copays and deductibles to Medicare recipients unless they offset that amount by some sort of financial or in-kind contribution.” Applegate said that the emergency squad was waiting for instructions from the township committee as to what path they would like them to take. He would like to draft a contract for 2017 between the squad and the township once the committee provides feedback. Committeeman Bill Rafferty asked Applegate whether the township has a contract now with the Hampton Lakes Emergency Squad. Applegate indicated that the township did have a contract through the end of the year but that there is uncertainty after Jan. 1. “Yes, I believe we do have a contract,” Applegate said. “What are the precise terms of that contract? I don’t know. Before the bid, we had a contract with the township and that contract expires come Dec.

PHOTO FOR THE PINE BARRENS TRIBUNE Existing Hampton Lakes Emergency Squad ambulance. 31. I’ve always assumed we’ve been operating under that contract because nobody told me that it was voided or terminated. My understanding is that we were operating under that contract until we negotiate the terms of a new contract. I had talked to Ms. Hoffman (township administrator) and she indicated that the bid is the new contract which my response was if that is the case I need some direction from the township as to what route are we going to take. Are they going to provide financial support or are they going to say no, no financial support, go ahead and bill patients because it is one or the other which in turn caused this evening’s meeting?” Applegate said that he was treating the bid as the model for the new contract effective Jan. 1st. However, the conflict with the AntiKickback Statute caused Applegate to seek the committee’s guidance. Committeeman Michael Mikulski asked Applegate to list the in-kind support the township currently provides. Mikulski noted that the squad’s finances and expenses this year are under control and being well managed. Applegate said that the township paid for

the organization’s workers’ compensation for one year and that also fuel is being provided. He also said that the squad is covered under the township’s Joint Insurance Fund for automobile liability, professional liability and workers’ compensation for volunteers. Applegate was unable to provide a figure for the support without performing some research. However, he said that under the initial contract, the township was supposed to forward a $15,000 financial contribution which hasn’t happened yet. Applegate said he was concerned with the significant expenses that the squad was incurring. He said that what the squad is not collecting from the patients exceeds $100,000. This includes the squad’s financial hardship policy, not billing for copays and deductibles, and non-ride calls or where the squad arrives for a call but doesn’t transport the subject to the hospital. Mikulski inquired about what the squad would do with the money, should they start collecting payments from township patients. He pointed out that the squad has operated in

the black since the year began. “Every entity could use more money,” Mikulski said. “Is there something in particular, pieces of equipment, etc. that would be utilized or expended with this money being recovered?” “The organization is in a desperate need of a new rig,” Applegate said. “The rigs that are currently being used are either at or near the end of their useful life.” Applegate said that the cost of a new rig would be approximately $200,000. He said it is an expenditure that is going to need to be undertaken in the near future. He said that while it looks like the squad has a small profit, there would be no way for them to finance the acquisition of a new rig. He also said that the board of trustees was exploring grant opportunities. Committeeman Ronald Heston said that he was concerned because of the budgetary constraints the township is under. “I have a real concern,” Heston said. “I am looking at $103,000 ten months into the

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