Firm: Govt should not set rate for private ambulances

The first and only private ambulance firm in the CNMI lauds a proposal to regulate private ambulances to ensure accountability and compliance with standards of care and operations but it says the government should not “determine, fix and regulate rates” for these companies.

St. Michael’s Medical Response said the government should not interfere with the dynamics of the free market and allow private sector enterprise to thrive on competition and demand.

“To the extent that the government does not ‘determine’ rates especially in the private sector health care industry; that the government should not treat private ambulance companies any different,” said Joseph C. Santos, president and co-owner of St. Michael’s Medical Response.

Santos also raised concern about a “clear conflict of interest between the issuance of certificates by the same person regulating the industry.”

House Bill 16-111, introduced by Rep. Ralph DLG. Torres, R-Saipan, gives the head of the Office of Emergency and Medical Services the authority to issue, amend, transfer and revoke certificates of necessity.

Santos said there is a reason why the hospital administrator at the Commonwealth Health Center is not authorized to license physicians to work at the government hospital because of the inherent possibility that the administrator may be biased into issuing a license to a physician that may not necessarily meet the minimum criteria to work as a physician, as a way to cut corners or to favor the employment of a physician that is familiar to the administrator.

“Similarly, the director of EMS may be biased into issuing a certificate to a company that may not be qualified to transport sick and critically ill patients,” Santos said in a letter to Rep. Ray N. Yumul.

The Saint Michael’s Medical Response president said this conflict of interest and possible bias can easily be mitigated or avoided completely if the licensing of private ambulance companies be handled and issued by a third party such as the Medical Professional Licensing Board.

H.B. 16-111, which also seeks to lessen the load of the Department of Public Safety in responding to non-emergency calls, is ready to be discussed in the House of Representatives after members adopted the standing committee report.

Santos said the reporting of financial information of the company to the Office of EMS and the requirement of submitting patient care reports to the same office may violate federal regulations that protect the privacy of patient medical information.

“Again, I fully support legislation that aims at regulating the private ambulance industry in the CNMI but I strongly feel that H.B. 16-111 contains provisions that will adversely affect my company but more importantly, affect the direct patient care that we currently provide to this community,” Santos added.

Saint Michael’s Medical Response started operations in June 2008 after securing a loan from the Pacific Island Development Bank that helped with the purchase of equipment as well as working capital. All its current employees are residents. The company can be reached at 483-7667 or via email at smmr@pticom.com.