HLTH 88 008 PE

                                                           4-0900-2165 2

 

 

                                 STATE OF MINNESOTA

                         OFFICE OF ADMINISTRATIVE HEARINGS

 

                      FOR THE MINNESOTA DEPARTMENT OF HEALTH

 

 

In the Matter of the

License Applications                                           FINDINGS OF.  FACT,

of North Ambulance,                                            CONCLUSIONS   AND

Hennepin County EMS,                                             RECOMMENDATION

and HealthOne

 

     The above-entitled matter Came on for hearing before Administrative Law

Judge Peter C, Erickson at 9:30 a.m. on Tuesday, April 12, 1988 at the

Minnesota  department  of  Health  Building,  Minneapolis,  Minnesota.   The   record

on this matter was closed on May 25,  1988,  the  date  of  receipt  of  the  last

post hearing  submission.  All  parties  in  this  matter  waived  the  ninety-day

report requirement contained in Minn.  Stat.  144.802, subd. 3(g) (Supp. 1987).

 

     Kent G. Harbison, from the  firm  of  Fredrikson  &  Byron,  Attorneys  at  law,

1100  International  Centre,  900  Second  Avenue  South,  Minneapolis,  Minnesota

55402-3397, appeared on behalf of Applicant, North Ambulance.  Marilyn

Maloney,  Assistant  County  Attorney,  A-2000  Hennepin  County  Government   Center,

33 South Sixth  Street,  Minneapolis,  Minnesota  55487,  appeared  on  behalf  of

Applicant, Hennepin County Ambulance Service.  Mark G. Mishek, General Counsel,

HealthOne Corporation, 2810 - 57th Avenue North, Minneapolis, Minnesota

55430 2496, appeared on behalf of Applicant, HealthOne Transportation

Services.  Paul A.  Melchert,  from  the  firm  of  Melchert,  Hubert,  Sjodin  &

Willemssen, Attorneys at Law, First National Bank Building, Box 7, Waconia,

Minnesota  55387,  appeared  on  behalf  of  Objector,  Waconia  Ridgeview  Ambulance

Service. (The  Petition  to  Intervene  filed  on  behalf  of  Waconia  Ridgeview  was

withdrawn after the three Applicants amended their applications to exclude the

Objector's service area.)

 

     This Report  is  a  recommendation,  not  a  final  decision.  The  Commissioner

                                           will Make the  final  decision  after  a

of the Minnesota Department of Health WI

review of the record which  may  adopt,  reject  or  modify  the  Findings  of  Fact,

Conclusions, and Recommendations contained herein.  PUrsUdnt to Minn.  Stat.

5 14.61, the final decision  of  the  Commissioner  shall  not  be  made  until  this

Report has been made available  to  the  parties  to  the  proceeding  for  at  least

ten days.    An opportunity must be afforded to each party adversely affected by

this Report to  file  exceptions  and  present  argument  to  the  Commissioner.

Parti es should c ontact Si ster Mary Madonna Asht on , Commi s si oner, Mi nne Sota

Department  of  Health,  717  Delaware  Street  S.E.,  Minneapolis,  Minnesota  55440,

to ascertain  the  procedure  for  filing  exceptions  or  presenting  argument.

 

                                 STATEMENT OF ISSUES

 

     The issues to be  determined  in  this  proceeding  are  whether  the  Applicants

have shown, by a preponderance of the evidence, that their respective

 


applications for expanded and/or new ambulance service should be  granted

pursuant to the standards set forth in Minn.  Stat. sec. 182.802, subd. 3(g)  (1987

supp.).

 

    Based upon all of the proceedings herein, the Administrative Law Judge

makes the following:

 

                               FINDINGS OF  FACT

 

PROCEDUR AL HISTORY

 

    1.   This case involves the applications of three licensed medical

transportation providers to expand each provider's primary service area

("PSA") within which it can provide scheduled advanced life support ("ALS")

and basic life support ("BLS") transportation services.   Hennepin  County

Ambulance Service ("HCAS") filed its application with the Minnesota  Department

of Health on August 24, 1987 and amended that application at the hearing on

April 12, 1988.  HealthOne irdnsportation Services ("HealthOne") filed its

application with the Department on September 1, 1987 and amended that

application on March 28, 1988 and at the hearing on April 12, 1988.  North

Ambulance ("North") filed its application with the Department on November  18,

1987 and amended that application at the April 12, 1988 hearing.

 

    2.   On January 25, 1988, the Commissioner of Health issued a Notice  and

Order for Hearing which consolidated the three above referenced  applications

and set a date for a public hearing on April 12, 1988.  On February  5,  1988,

the Notice of Hearing was published in the State Register at 12 S.R.  l62l.  On

February 8, 1988, notice of the hearing was published in the "Minneapolis  Star

and Tribune".

 

    3.   After the hearing on this matter had been concluded, the  Department

of Health moved copies of the amendments to all three applications to an

"interested persons" list maintained by the Department.  This  mailing  informed

recipients that additional comments on the applications, as amended, could  be

submitted to the Administrative Law Judge on or before April 29, 1988 for

consideration as part of the record.

 

 

HENNEPIN COUNTY AMBULANCE SERVICE

 

    4.   HCAS is currently licensed for both advanced life support and  basic

life support transportation for both scheduled and unscheduled runs in  a

primary service area generally covering the City of Minneapolis, the  southwest

suburbs and some of the southern suburbs.  The municipalities  currently  served

are Deephaven, Eden Prairie, Excelsior, Greenwood, Hopkins,  Minneapolis,

Minnetonka, Richfield, St. Anthony, St. Louis Park, Shorewood, Tonka Bay  and

Woodland.  HCAS's license for these services was most recently renewed  by  the

Commissioner of Health in October of 1987.

 

    5.   In its application, HCAS seeks to expand its current PSA for

scheduled ALS and BLS services to the boundaries of Hennepin County, with  the

exception of the area of Hennepin County which is in the PSA of Waconia

Ridgeview Ambulance Service.

 

    6.   The amended application sets forth the schedule of services  applied

for as follows:

 

 

                                      2

 


         Hennepin County Medical Center Ambulance Service will

         provide prearranged transfer runs with basic life support

         and advance life support ambulance service for any person

         and/or facility from any location within Hennepin County,

         except as limited in Section I above, to Hennepin County

         Medical Center.  "Pre-arranged transfer run" is defined

         here and in Hennepin County Ambulance Ordinance, subs. 21

         as, "the classification of ambulance request when the

         caller requests an ambulance for transportation at some

         later time or date for non emergencies.  Immediate

         attention or transportation is not being requested.

 

    7.   Currently, the following are licensed to provide advanced  life

support services in the proposed Hennepin County PSA: Edina  Fire  Department,

North Memorial Medical Center Ambulance Service and HealthOne  Ambulance

Service.  These providers also provide BLS service in addition to Midwest

Med-Cab and  medi-bus.

 

    8.   HCAS seeks to expand its PSA for scheduled transportation for the

purpose of providing greater continuity of care for certain patients being

transported to the Hennepin County Medical Center from areas outside the

current PSA.  It is estimated that the proposed expanded service  would  result

in only approximately 40 to 50 ambulance runs per year.  This number is less

than 1/10th of one percent of HCAS's current run volume for both scheduled and

unscheduled sp(.,ces.

 

    9.   A need exists for certain critical Hennepin County Medical Center

patients who would benefit by transportation to Hennepin County Medical Center

by Hennepin County Medical Center's own ambulance service rather than  another

provider.  Most of these patients will be critical patients  with  severe

injuries or burns or in need of hyperbaric medicine, renal dialysis,  or

neonatal care who have arrived at the Minneapolis-St.  Paul Airport for

transportation to and treatment at Hennepin County Medical Center.  HCAS is

not currently able to provide ambulance transportation to patients who  arrive

at the airport because it is outside of the present  PSA.  Additionally,

Hennepin County Medical Center geriatric service doctors will be able to

provide medical attention for the transportation of nursing home patients to

the Medical Center from areas in Hennepin County which are now outside the

current PSA.

 

    10.  HCAS is not planning to market its requested expanded scheduled

service.

 

    11.  The Metropo Ii I an Counci I Metro Hea Ith P I an and t he Community Hea Ith

Plan for Hennepin County do not provide any sections dealing with scheduled

ALS or BLS ambulance service.

 

    12.  In JanUdry of 1988, HCAS added another fully staffed ambulance to its

complement in order to curb an increase in the average response time for

unscheduled ambulance runs.  All ambulances in the complement will be used for

both scheduled and unscheduled runs.

 

    13. No recommendations or comments were received from the  governing  body

of Hennepin County or any of the municipalities for which the proposed

 

 

                                    -3-


expanded services would be provided either in support or in opposition to the

application of HCAS.

 

 

HEALTHONE TRANSPORTATION SERVICES

 

    14.  HealthOne transportdtion Services is an operating division of

HealthOne Corporation and has been providing comprehensive medical

transportation services in the Minneapolis -St.  Paul metropolitan area for

approximately 15 years.  Those services now include:  (a) unscheduled and

scheduled ALS transportation services in Anoka County, portions of northern

Ramsey County, a Small portion of northern Hennepin County and the City of

Bloomington in Hennepin County; (b) BLS transportation services in the areas

listed in (a) and most of Hennepin County, Ramsey County including the City of

St. Paul, and portions of Dakota County; (c) scheduled ALS services between

HealthOne hospitals located within the metropolitan area; and (d) special

transportation services throughout the entire metropolitan area, which

services are not regulated by the Department of Health.

 

    15.  HealthOne's application seeks to provide scheduled ALS services to

patients originating in a PSA which includes all of Hennepin County except the

area serviced by WaConia Ridgeview Ambulance Service, all of Anoka County, and

all of Ramsey County excluding the corporate limits of the Cities of White

Bear Lake, Gem Lake, White Bear Township, North St. Paul and the City of

Maplewood.

 

    16.   The amended application sets forth the schedule of services applied

for as follows:

 

          HealthOne Transportation Services will provide Advanced

          Life Support (ALS), pre arranged transfer runs for patients

          originating at any medical facility (e.g., hospitals,

          nursing homes, ambulatory surgical centers, physician

          clinics) within the primary service area (PSA) described

          below, whose physician, acting personally  or  through  a

          Registered Nurse who is acting as a representative of the

          medical facility of origin,  requests  transportation  to  any

          HealthOne facility, 24 hours per day, 7  days  per  week.

          "Pre arranged transfer run" is defined here  and  in  the

          Hennepin County Ambulance Ordinance, subs.  21  as,  "the

          classification of ambulance request when the caller

          requests an ambulance for transportation  at  some  later

          time or date for non-emergencies.    Immediate attention or

          transportation is not being requested."

 

    17.  Currently, the following are licensed to provide ALS services in all

or portions of Hennepin County:  Edina Fire Department, North Memorial Medical

Center Ambulance Service, HealthOne, Waconia Ridgeview Ambulance Service, Life

Link 111, and Health Last Ambulance.'  Within Anoka County, Life Link III,

Health East and HealthOne provide ALS services.  Within the requested new PSA

in Ramsey County, the St. Paul Fire Department, Health East Ambulance, Life

Link III , and HealthOne (only inter-facility) currently provide ALS services.

 

 

 

     Applicants, amended PSA excludes the Waconia Ridgeview service drea-

 

 

                                        4 -

 


    18. If HealthOne's application is granted, a duplication in  services  will

result with the providers listed above.  However, HealthOne has  experienced  an

increasing volume of scheduled ALS ambulance runs.  Additionally,  the  granting

of this application would provide a continuity of care for patients being

transported to HealthOne hospitals from areas outside the current PSA.

Hea lthone faci Iit i es in the metropo I i tan area are Mercy and Unity Hospit a Is in

Anoka County; United and Children's Hospitals in Ramsey County; and

Metropolitan Medical Center-Mt.  Sinai Hospital in Hennepin County.  There  is

no estimate as to the number of additional scheduled ALS ambulance runs  that

the expanded PSA will generate.

 

    19.  HealthOne has 11 ambulance "bases" scattered throughout the

metropolitan area.  Thus, it does not contemplate that unscheduled, emergency

needs will go unmet while scheduled runs are being made.

 

    20.  The Metropolitan Council Metro Health Plan and the  Community  Health

Plan for Hennepin County do not provide any sections dealing with  scheduled

ALS ambulance service

 

    21. The Mayor and Fire Chief of the City  of  St.  Paul  submitted  a  joint

comment in opposition to the  application  of  HealthOne.  Their  major  concerns

were the lack of definition for the terms "scheduled" and "inter facility"

care.  In addition, Mayor Latimer and  Fire  Chief  Conroy  are  concerned  about

individuals being able to "bypass" the "911" system.

 

 

NORTH AMBULANCE

    22. North Ambulance is owned  by  North  Memorial  Medical  Center,  3300

Oakdale Avenue North, Robbinsdale, Minnesota and has been providing ambulance

services for approximately 27 years.  North  Memorial  Medical  Center  is  a

licensed health care facility.  North  Ambulance  is  currently  licensed  by  the

Minnesota Department of Health to provide ALS and BLS unscheduled and

scheduled transportation services in the northwestern portion of the

metropolitan area that lies generally west of Interstate Highway 94 and north

of State Highway 12.

 

    23. In its application, North Ambulance  seeks  to  expand  its  current  PSA

for scheduled ALS and BLS services to  include:  all  of  Hennepin  County  with

the exception of the area of Hennepin County which is  in  the  PSA  of  WdConia

Ridgeview Ambulance Service; all of  Anoka  County  excluding  the  corporate

limits of the Cities of Lino Lakes, Columbus,  Circle  Pines,  and  Lexington;  and

all of Ramsey County excluding the corporate limits of the Cities of White

Bear Lake, Gem Lake, White Bear Township, North St.  Paul  and  the  City  of

Maplewood.

 

    24.    The amended application gets forth the  schedule  of  servicen  applied

for as follows:

          North Ambulance will provide ALS and BLS pre arranged

          transfer runs in the PSA described below, 24 hours a day.

          The term 'pre-arranged transfer run" is defined here and in

          the Hennepin County Ambulance Ordinance, subsection 21 as,

          "The classification of ambulance request when the Cdller

 

 

                                        -5


          requests an ambulance for transportation at some later  time

          or date for non emergencies.  Immediate attention  or  trans-

          portation is not being requested." The  only  qualification

          to this term and provision is that North Ambulance does  not

          intend to use its ALS on duty emergency fleet to respond  to

          proposed scheduled calls.  North Ambulance will  not  reduce

          its current complement of emergency response vehicles to

          substitute for the above-scheduled transfer  volume.  North

          Ambulance intends to restrict its pre arranged transfer

          runs to calls received from physicians, their designees  or

          other licensed health care providers.  North  Ambulance  does

          not intend to respond to requested scheduled calls from

          private residences.

 

    25.  Currently, the following are licensed to provide life support

transportation services in the proposed, expanded PSA:  Hennepin County

Ambulance Service, Health East Ambulance Service, HealthOne,  Medi-Bus,  St.

Paul Fire Department, Edina Fire Department, Life Link III,  and  Falcon  Heights

Fire Department.

 

    26. North Ambulance seeks to expand its PSA for scheduled  ALS  and  BLS

services to increase the number of available providers in the  most  densely

populated metropolitan areas.  North Ambulance statistics  show  that  the  number

of ALS ambulance runs it has made from 1983 through 1987 has risen by

approximately 1,000 each year.    In addition, the number of scheduled BLS  runs

it made rose from approximately 3,000 in 1986 to approximately 6,670  in  1987.

Currently, there is a trend for  medical facilities to become  specialized,  thus

resulting in a greater need for  inter-facility transportation of  patients.

Additionally, because much more  out-patient medical care is being  provided,

there is a greater need for patient transport to and from  medical  facilities

which includes a growing population of elderly individuals in  nursing  homes.

 

    27.  North Ambulance maintains four separate ambulance "bases" in the

metropolitan area.  These are located in Brooklyn Park,  Maple  Grove,  Crystal

and Golden Valley.  Currently, North has available nine  vehicles  to  provide

scheduled transportation services.  Three of these are  equipped  to  provide  ALS

transport.  No vehicles now providing unscheduled  transportation  services  for

North Ambulance will he used to provide scheduled services  if  this  application

is granted.  The vehicles and staff for unscheduled  and  scheduled  services

will be completely independent.

 

    28. The Metropolitan Council Metro Health Plan and  the  Community  Health

Plan for Hennepin County do not provide any sections dealing  with  scheduled

ALS or BLS ambulance service.

 

    29. The Mayor of St. Paul, in conjunction with the Fire  Chief,  filed  a

comment in opposition to the application of North Ambulance.  The  reasons  for

this opposition are set forth above in Finding No. 21 .

 

 

OTHER EVIDENCE

 

    30. At the hearing on this matter, Rod Crane, Executive  Director  of  Life

Link 11I, testified in opposition to the three applications considered

herein.  He stated that if any of these applications are  granted,  it  would

 

 

                                      -6-

 


result in a loss of business for Life Link III which would have  a  detrimental

effect.  Additionally, Mr. Crane argues that all three  applications  should  be

tabled until the EMS Task Force commissioned by the Department of  Health  makes

its report regarding the appropriate regulation of scheduled services.

 

    31.  The Judge received approximately 20 written submissions from other

life transport services, city officials and public health organizations.

These have been thoroughly read and considered herein.  All  of  these  comments

will be submitted to the Commissioner of Health as part of the  official  record

in this case. !he Judge points out that the Hennepin  County  Community  Health

Department initially commented in opposition to dll three applications.

Their concern WdS the fact that the expansion of the applicants' PSAs  and  the

dual use of vehicles for both scheduled and unscheduled services  could  result

in a significantly greater response time for emergency runs.  In  addition,  the

Health Department is concerned that permitting individuals from private

residences to call for scheduled ambulance services will result in a general

confusion as to the proper use of the "911" system.  In a second submission,

the County Health Department stated its support for the North Ambulance

application because its amendments had addressed their primary concerns.

 

    Based upon the following Findings of Fact, the Administrative law Judge

makes the following:

 

                                  CONCLUSIONS

 

    1.   The Administrative Law Judge and the Commissioner of Health have

jurisdiction over this matter pursuant to Minn.  Stat. sec. 14.50 (1986)  and  Minn.

Stat.  144.802, subd. 3 (1987 Supp.).  The Notice of Hearing WdS in all

respects proper and all procedural and substantive provisions of law or rule

have been complied with by the Department.

 

    2.   As stated in the Notice of and Order for Hearing, the issue to be

determined in thin proceeding is whether the applicants have shown  that  their

applications should be granted based upon the criteria set out in  Minn.  Stdt.

  144.802, subd. 3(g) (1987 Supp.).  That statutory provision reads as follows:

 

              (g) The administrative law judge shall review and

         comment upon the application and shall make written

         recommendations as to its disposition to the  commissioner

         within 90 days of receiving notice of the application.  In

         making the recommendations, the administrative law judge

         shall consider and make written comments as to whether the

         proposed service, change in base of operations, or expansion

         in primary service area is needed, based on  consideration

         of the following factors:

 

              (1) the relationship of the proposed service,  change

         in base of operations or expansion in primary service area

         to the current community health plan as approved by the

         commissioner under section 145,918;

 

              (2) the recommendations or comments of the  governing

         bodies of the counties and municipalities in which the

         service would be provided;

 


              (3) the deleterious effects on the public health from

         duplication, if any, of life support transportation

         services that would result from granting the license;

 

              (4) the estimated effect of the proposed service,

         change in base of operation or expansion in primary service

         area on the public health;

 

              (5) whether any benefit accruing to the public health

         would outweigh the costs associated with the proposed

         service, change in base of operations, or expansion in

         primary service area.

 

              The administrative law judge shall recommend that the

         commissioner either grant or deny a license or recommend

         that a modified license be granted.  The reasons for the

         reLommenddtion shall be set forth in detail.  The

         administrative law judge shall make the recommendations and

         reasons avdilable to any individual requesting them.

 

    3.   After due consideration of all of the factors enumerated in the above-

quoted statute, and for the reasons set forth in the Memorandum below, the

Judge concludes that all three Applicants have met the Statutory criteria and

that their applications should be GRANTED.

 

    Based upon the foregoing Conclusions, the Administrative taw Judge makes

the following:

 

                                RECOMMENDATION

 

    IT IS HEREBY RECOMMENDED:  That all three applications herein, as amended,

be approved by the Commissioner of Health.

 

Dated this..) (I day of June, 1988.

 

 

 

 

                                         PETER C. ERICKSON

                                         Administrative Law Judge

 

 

                                  MEMORANDUM

 

    All three of the Applicants in this case have applied for scheduled

services within an expanded PSA.   Both HCAS and HealthOne argue that

"continuity of care" is a major reason why their applications should be

granted.  North Ambulance contends, primarily, that due to the increase in the

number of scheduled ambulance runs in the urban area, there is a need for

another "competitor" in their proposed PSA.

 

    The Judge will first point out the significant differences between the

proposed scheduled services applied for even though it has been concluded that

all three applications should be granted,  HCAS proposes to provide scheduled

transportation servicen only to Hennepin County Medical Center.  However, all

 

 

                                     -8 -

 


of their ambulances may provide this service and a 'pick-up' may be  initiated

by a private citizen and originate from a residence.  HealthOne's amended

application provides for scheduled services originating only at medical

facilities and initiated by a physician or nurse.  Any of the HealthOne

ambulances may provide the scheduled runs.  A HealthOne facility will be on

the receiving end of all of the scheduled transportation.   North Ambulance

proposes to provide scheduled ambulance services initiated by physicians or

health care providers.  It does not "intend" to make 'pick-ups" from private

residences.  North Ambulance will transport patients to any location in the

proposed PSA, however.  No ambulances that currently provide  unscheduled  runs

will be used for the proposed scheduled transportation, however.

 

   The above-provisions in the three applications raise three issues:

(1) will the "911" system be bypassed by private citizens who are aware they

can arrange for scheduled services absent the input of a medical practitioner;

(2) will the use of emergency vehicles for scheduled runs result in a  greater

response time because of the unavailability of ambulances; and (3) is

increasing the competition in the scheduled transportation market consistent

with the intent of Minn.  Stat.  144.802, subd. 3 (1987 Supp.).  These  issues

must be examined in light of the statutory criteria, or "factors", which  have

been set forth above in Conclusion No. 2.

 

   The first factor to be considered is the relationship of the proposed

change in service and PSA to the current community health plan.  As is set

forth above in the Findings of Fact, neither the Metropolitan Health Plan  nor

the Hennepin County Health Plan speak to the provision of scheduled  ambulance

services by life support transportation providers.  Consequently,  this  factor

is not applicable to these applications.

 

   The second factor which must be addressed is the "recommendations or

comments of the governing bodies of the counties and municipalities" which are

included in the proposed PSAS.  As the Findings above show, the Mayor of the

City of St. Paul commented in opposition to the applications of HealthOne  and

North Ambulance.  The reasons for the Mayor's opposition are:  the lack of

definition for several of the terms the Applicants use to define the  services

proposed; and a concern that the "911" system will be bypassed by the  public.

The Judge has determined that the schedule of services proposed by both

HealthOne and North Ambulance is sufficiently specific regarding what can, and

cannot, be provided if the expanded licensure is granted.  Additionally,  both

the HealthOne application and the North Ambulance application, as amended,

require that a health facility or medical practitioner initiate the  scheduled

service request.  Consequently, the public at large will not be able to  access

these proposed scheduled services.  No increased confusion regarding the  "911"

system should result.

 

   The third factor which must be considered is whether granting the

applications would result in "deleterious effects on the public health from

duplication . . . of . . . services. . . ." Granting one, two or all three  of

the application herein would result in some duplication of services.  Both

HCAS and HealthOne have defined their scheduled services in terms Of a need

for "continuity of care" for patients whom they will serve.  Because  the  HCAS

and HealthOne transports will be to only their own facilities, there will  not

be a "general" duplication of services in the PSA.  North Ambulance intends  to

offer scheduled services to any location in its proposed PSA.  Consequently,

it will be in competition with all of the other scheduled services now being

 

 

                                     9

 


provided.    However, the record shows that  the  demand  for  scheduled  services  is

increasing in the metropolitan area and  none  of  the  three  Applicants  is

proposing to expand into an area where there is only one other ambulance

provider offering scheduled and unscheduled services.       The  Judge  has  concluded

that all three Applicants have shown  that  no  deleterious  effects  on  the  public

health will result from a duplication of services if     the applications are

granted.   North Memorial  Medical  Center  v.  Minnesota  Department  of  Health,

slip op. (Minn.  App. May 24, 1988    CX 87-2166.

 

    The fourth factor which must be addressed is the     'estimated  effect"  of  the

expansion in PSA on the  public  health.  Both  HCAS  and  HealthOne  contend  that

the public health will be benefited because patients admitted to their

facilities by way of an ambulance  will  receive  "continuity  of  care"  from  their

respective ambulance  services.  North  Ambulance  contends  that  an  expanded  PSA

will provide an  additional,  competitive  scheduled  ambulance  service  which  can

only be a benefit to the  consuming  public.  The  concern  raised  by  the  Hennepin

County Community Health  Department  is  whether  using  ambulances  for  scheduled

services will result in  an  unavailability  of  vehicles  when  emergency  needs

arise.   North Ambulance Service will not  use  any  of  its  vehicles  that  provide

emergency services for  its  scheduled  services  operation.  The  other  two

Applicants will have dual-use vehicles  but  the  number  of  scheduled  runs  should

be much less than North's because patients  will  only  be  delivered  to  their  own

facilities.  Although the County Health Department has shown that the

emergency response time has been increasing over the past few years, its

concern if any of  these  applications  are  granted  is  only  speculative.  The

county ambulance ordinance  regulates  the  response  time  that  licensed  services

must meet.  Consequently, there is a control mechanism if any of the

Applicants' response times  do  not  meet  the  criteria.  Because  the  County's

concern is largely speculative, the Judge will not make an adverse

recommendation based on that consideration.

 

    Another issue which arises in  conjunction  with  the  above  factor  is  whether

the public's use of a scheduled  service  will  result  in  the  "911"  ystem  being

bypassed.  This is a concern, however,  the  Judge  has  no  way  to  evaluate  the

seriousness or extent  of  the  problem.  Consequently,  it  is  impossible,  based

on this record, to "estimate" any negative  effects  on  the  public  health  due  to

the possibility of "911" confusion.

 

    The last factor which must be  addressed  is  weighing  the  benefits  to  the

public if the applications are  granted  against  the  costs  associated  with  the

proposed expansion of service and PSA.  The "costs" contemplated in this

statutory criteria are the costs of a  proposed  service  which  will  be  passed  on

to the consuming public.     Life Star Ambulance Systems Inc. v. Ashton               363

N.W.2d 895 (Minn.  App. 1985).  The record  in  this matter does  not  support  a

finding that any additional costs will  be  passed  on  to  the  public.  There  was

a suggestion that North Ambulance may  have  to  establish  one  or  more  additional

ambulance "stations", but that Will only be  based  on  the  demand  for  its

scheduled services  if  the  application  is  granted.  Consequently,  any  increased

cost to the public is only speculative and will not be the basis for a

negative recommendation.

 

    The Judge has concluded that all three Applicants herein have met the

statutory criteria set forth in Minn.  Stdt.  sec.  144.802,  subd.  3(g)  (1987

Supp.).  As can be easily seen,  these  criteria  are  not  objective  but  rather

very subjective and  prone  to  policy  considerations.  The  Judge  has  attempted

 

 

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to evaluate the applications herein as objectively as possible, within the

standards imposed by the statute.   The Judge points out that  several  ambulance

services now licensed in the proposed PSAs objected to the applications

herein, primarily because they do not want any more competition in the area

being served.  These objectors are, for the most part,  large  ambulance  service

providers who should not be greatly affected by the increased competition.

The proposed PSAs herein were amended and structured specifically to

accommodate the concern for adverse competition on small providers.  Sep,

North Memorial Medical Center, sugra.  An argument has been  made  that  granting

North Ambulance's application will essentially deregulate  ambulance  licensure.

The Judge does not agree.  Rather, the Judge concludes that the Commissioner

can determine "safe" levels of competition within the meaning of "need" set

forth in the statute.  See, Twin Ports Convalescent, Inc. v. Minn.  Brd. of

                        

Health, 257 N.W.2d 343,     (Minn. 1977).

 

                                    P.C.E.

 

 

 

 

 

 

 

 

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