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Financial viability and long-range goals
EDITORIAL
GENERAL INFORMATION REGULAR SUBSCRIPTIONS To subscribe to The Journal of Air Medical Transport, to change the address of your current subscription, or to ask questions about your subscription, call 801-228-9626 or write the business office. Subscription rates for North Americ~ S30 per year for 12 issues or $52 for two years for 24 issues. Subscribers outside North America add $18 per year for airmail postage. All foreign subscribers remit in U.S. dollars drawn on a U.S. bank or make payment with American Express, VISA or MasterCard.
Financial Viability and Long-range Goals • Jim Bothwell
ASSOCIATION SUBSCRIPTIONS Paid-up members of AAMS, NFNA and NFPA receive an annual subscription with their association membership. Questions regarding subscription and address changes should be directed to the appropriate association office.
BACK ISSUES Back issues prepayable at $5 each.
EDITORIAL CONTRIBUTIONS The Journal of Air Medical Transport encourages article queries and submissions. Article submissions should include 5 printed copies accompanied with a 5-1/4 or 3-1/2-inch diskette. WordPerfect software preferred. Submissions should be sent to the editorial office and be accompanied by return postage. Editorial guidelines available upon request. Telephone 801-2265555 or FAX 801-226-8804 for more information. The Journal of Air Medical Transport takes precautions to provide accurate information and does not accept any liability for errors or omissions inadvertently caused by contributors.
ADVERTISING Advertising inquiries should be directed to Jeff Harmon, 801-226-5555.
LETTERS Letters should be mailed to the editorial office c/o Letters. The writer's name, city and state must be included. We reserve the fight to edit letters.
REPRINT INFORMATION Reproduction in whole is prohibited. Photocopying of individual segments for research purposes is permitted, provided proper source credits are included. © 1991 The Journal of Air Medical Transport (ISSN: 1046-9095) is published monthly by WordPerfect Publishing Corporation. Editorial and executive offices at 270 West Center, Orem, Utah 84057. Second-class postage paid at Orem, Utah. P O ~ R : Send address changes to The Journal of Air Medical Transport, 270 West Center, Orem, Utah 84057. Subscription rates for U.S. and possessions: 830 per year for 12 issues, $52 for two years for 24 issues. Subscribers outside the United States and Canada - add $18 per year for airmail postage. All foreign subscribers - remit payment in U.S. dollars drawn on a U.S. bank or make payment with American Express, VISA or MasterCard.
The Journal of Air Medical Transport • April 1991
THE CHANGES IN THE UNITED States and world economy in the past year raise concerns about the viability of long-range goals for professionals in the air medical industry. Changes in medical economics continue to provide challenges to health care managers and personnel on all levels. Many professionals have been forced to re-examine their programs' revenues and expenses and to plan for tighter controls to assure that the bottom line remains in the black. Of paramount importance in this process is the ability to understand all of the variables, both internal and external, that affect both program revenue and expenses. W h e n f a c e d with e c o n o m i c challenges in program management, most health care managers emphasize cutting costs. Usually, this approach focuses only on short-term results that affect the current year's operating budget. Unfortunately, this approach is similar to taking out a six-year car loan to achieve a low monthly payment. Consideration of short-term expense cannot obscure long-term costs which probably would exceed acceptable limits. In this issue of The Journal of Air Medical Transport, EMS pilot Walter Phebus discusses a long-range cost analysis of factors surrounding on-site refueling. Comprehensive, incisive cost analyses of this nature can lead to substantial savings, t h e r e b y e n h a n c i n g program viability.
The revenue aspect of air medical transport programs is frequently managed by an isolated administrator. It is important for all managers and line personnel to fully understand current reimbursement systems and the requirements that these systems place on all health care services, including air medical transport. Mike Lang and Dave Samuels from Samaritan AirEvac address this issue in an article that discusses the importance of adhering to reimbursement procedures. This involves all personnel, both referring and receiving, in the reimbursement systems. Another approach to program solvency is outlined by Program Manager Vern Barfley, who describes how a membership subscription program helped put Air Life of Oregon in the black. Hopefully, the experiences of Air Life of Oregon will provide other air medical services with insights and techniques on how a membership program might help them achieve their financial goals and still maintain high levels of patient service. Air medical transport is a vital but expensive health care service. Continued success of these unique programs depends as much on their financial viability as on their medical expertise. Only when all personnel work together with creative and far-sighted managers can the financial challenges of air medical programs be met. • Jim Bothwell is Vice President of the
National l~ight Paramedics Association.
5
GENERAL INFORMATION REGULAR SUBSCRIPTIONS To subscribe to The Journal of Air Medical Transport, to change the address of your current subscription, or to ask questions about your subscription, call 801-228-9626 or write the business office. Subscription rates for North Americ~ S30 per year for 12 issues or $52 for two years for 24 issues. Subscribers outside North America add $18 per year for airmail postage. All foreign subscribers remit in U.S. dollars drawn on a U.S. bank or make payment with American Express, VISA or MasterCard.
Financial Viability and Long-range Goals • Jim Bothwell
ASSOCIATION SUBSCRIPTIONS Paid-up members of AAMS, NFNA and NFPA receive an annual subscription with their association membership. Questions regarding subscription and address changes should be directed to the appropriate association office.
BACK ISSUES Back issues prepayable at $5 each.
EDITORIAL CONTRIBUTIONS The Journal of Air Medical Transport encourages article queries and submissions. Article submissions should include 5 printed copies accompanied with a 5-1/4 or 3-1/2-inch diskette. WordPerfect software preferred. Submissions should be sent to the editorial office and be accompanied by return postage. Editorial guidelines available upon request. Telephone 801-2265555 or FAX 801-226-8804 for more information. The Journal of Air Medical Transport takes precautions to provide accurate information and does not accept any liability for errors or omissions inadvertently caused by contributors.
ADVERTISING Advertising inquiries should be directed to Jeff Harmon, 801-226-5555.
LETTERS Letters should be mailed to the editorial office c/o Letters. The writer's name, city and state must be included. We reserve the fight to edit letters.
REPRINT INFORMATION Reproduction in whole is prohibited. Photocopying of individual segments for research purposes is permitted, provided proper source credits are included. © 1991 The Journal of Air Medical Transport (ISSN: 1046-9095) is published monthly by WordPerfect Publishing Corporation. Editorial and executive offices at 270 West Center, Orem, Utah 84057. Second-class postage paid at Orem, Utah. P O ~ R : Send address changes to The Journal of Air Medical Transport, 270 West Center, Orem, Utah 84057. Subscription rates for U.S. and possessions: 830 per year for 12 issues, $52 for two years for 24 issues. Subscribers outside the United States and Canada - add $18 per year for airmail postage. All foreign subscribers - remit payment in U.S. dollars drawn on a U.S. bank or make payment with American Express, VISA or MasterCard.
The Journal of Air Medical Transport • April 1991
THE CHANGES IN THE UNITED States and world economy in the past year raise concerns about the viability of long-range goals for professionals in the air medical industry. Changes in medical economics continue to provide challenges to health care managers and personnel on all levels. Many professionals have been forced to re-examine their programs' revenues and expenses and to plan for tighter controls to assure that the bottom line remains in the black. Of paramount importance in this process is the ability to understand all of the variables, both internal and external, that affect both program revenue and expenses. W h e n f a c e d with e c o n o m i c challenges in program management, most health care managers emphasize cutting costs. Usually, this approach focuses only on short-term results that affect the current year's operating budget. Unfortunately, this approach is similar to taking out a six-year car loan to achieve a low monthly payment. Consideration of short-term expense cannot obscure long-term costs which probably would exceed acceptable limits. In this issue of The Journal of Air Medical Transport, EMS pilot Walter Phebus discusses a long-range cost analysis of factors surrounding on-site refueling. Comprehensive, incisive cost analyses of this nature can lead to substantial savings, t h e r e b y e n h a n c i n g program viability.
The revenue aspect of air medical transport programs is frequently managed by an isolated administrator. It is important for all managers and line personnel to fully understand current reimbursement systems and the requirements that these systems place on all health care services, including air medical transport. Mike Lang and Dave Samuels from Samaritan AirEvac address this issue in an article that discusses the importance of adhering to reimbursement procedures. This involves all personnel, both referring and receiving, in the reimbursement systems. Another approach to program solvency is outlined by Program Manager Vern Barfley, who describes how a membership subscription program helped put Air Life of Oregon in the black. Hopefully, the experiences of Air Life of Oregon will provide other air medical services with insights and techniques on how a membership program might help them achieve their financial goals and still maintain high levels of patient service. Air medical transport is a vital but expensive health care service. Continued success of these unique programs depends as much on their financial viability as on their medical expertise. Only when all personnel work together with creative and far-sighted managers can the financial challenges of air medical programs be met. • Jim Bothwell is Vice President of the
National l~ight Paramedics Association.
5