The Tulsa Forum by TulsaNow

EMSA has used Tulsa's ambulance fees to subsidize $800,000 in shortfalls for the Oklahoma City division, the Tulsa World learned Tuesday.

Kent Torrence, chief financial officer for the Emergency Medical Services Authority, told the World that Tulsa's eastern division has been subsidizing operations shortfalls for the western division, which includes Oklahoma City.

Torrence said as of the end of September, the western division owed $800,000 to the eastern division.

EMSA is a government agency that manages ambulance services for more than 1 million people in Tulsa, Sand Springs, Jenks and Bixby, as well as Oklahoma City and numerous suburbs in that area.

The agency receives about $4.8 million a year from a monthly utility bill fee paid by Tulsans. It also receives revenues from a utility bill fee in Oklahoma City.

Torrence said the $800,000 figure represents costs for western division operations in excess of that division's revenues to date. He said EMSA has taken steps to avoid future borrowing between the two divisions by building up a reserve fund in the western division.

Torrence said the western division is repaying the amount owed with interest.

"In October, that $800,000 drops back down to something like less than $100,000 and by the end of the year, there is no payable," Torrence said.

When City Councilor Bill Christiansen learned of Tulsa's subsidy for Oklahoma City, he said EMSA Chief Executive Officer Steve Williamson should have revealed that information to councilors during a discussion of the agency's finances at Tuesday's committee meeting.

"It appears to me that there are so many moving parts in this whole process that it would be a good idea for the city to find someone to audit EMSA from the perspective of money paid by the citizens of Tulsa into the program so that we are not paying for more services than we are getting," he said.

Christiansen said a lot of concerns are raised by the notion that "we're robbing Peter to pay Paul, and actually Tulsa is the lender."

During the committee meeting, Christiansen said he wants to amend a city ordinance to provide more oversight over EMSA. The councilor said he wants EMSA financial records, including annual audits, to be submitted to the council for review.

The council's discussion was sparked by a story in Sunday's Tulsa World that reported EMSA built up a $6.6 million cash reserve fund this year while giving pay raises, remodeling its building and paying $80,000 for lobbyists and PR firms.

The story also detailed past agency expenses, including a $999 Christmas tree, $3,000 barbecue grill and $9,000 area rug.

"If I just came here to Tulsa and read this article, I would think this is a place for me to get a loan, because anybody who spends money like this has got to have money to give me," Councilor Jack Henderson said.

Williamson defended EMSA's budget and spending and said the article could have caused confusion about the fund, which he said was 10 percent of the agency's annual operational cost. He said he is being a good steward of Tulsa's tax dollars.

Records show EMSA's operating cost this year is budgeted to be $25 million while the reserve fund's current balance is $4.1 million.

In 2007, the city instituted an optional $3.64 fee for ambulance service that is collected on the city's utility bills. Those who participate pay nothing for ambulance service.

Tulsa, the eastern division, and Oklahoma City, the western division, both collect the fee but pay it out to EMSA differently - Tulsa in one lump sum and Oklahoma City in monthly installments.

During the meeting, Christiansen acknowledged that he's never had a complaint about EMSA in the 10 years he's been a councilor.

"This discussion is not over the quality of service under your leadership," he told Williamson.

"When I see the operating reserve build up and then I see the article on Sunday that talks about the $1,000 Christmas tree and terrazzo floor and all those associated things, I really wonder what is going on," Christiansen said.

Williamson told the council that he has met with Mayor Dewey Bartlett's management team to develop a letter to further stipulate what to do with the money when the 10 percent reserve is reached.

"In the past, we've just given it back (to the city), but there is going to be a process (put in place) so there is nothing misled to the public or misled with (council) about how these funds are to be used," he said.

Read more from this Tulsa World article at http://www.tulsaworld.com/news/article.aspx?subjectid=17&articleid=20111026_11_A1_ULNSaa260222

I don't get the complaints about having a few nice things around. Who likes working in a dump? Unless you show me a pattern of a significant percentage of their budget being wasted on frivolities over a period of years, I can't get upset about that.

The last part of the article seems to say that there is no east/west subsidy if you look at it yearly. Better that EMSA as a whole not pay interest to a bank to make up for the irregularity in cash flow, assuming my reading was correct. If the western division of EMSA is in fact operating at a loss, that would be worth being concerned about.

I just have the feeling that if the situation was reversed the OKC govt would be calling for an investigation into the Eastern side of the state stealing all their EMSA money and spending it on ice cream makers.

I don't doubt it, but that doesn't make EMSA wrong. It only means that there are idiots in the world who will invent a conspiratorial narrative only tenuously connected to fact and spread it far and wide for political gain, a fact which we are all already acutely aware of.

Since both services are owned by the same parent corp, isn't this a normal thing to help balance out the business? To me it seems like a non issue since EMSA has probably been doing this since they came to OK. Must be a slow newsday.

If we Tulsan's can't ask and get good answers to the questions raised by a front page story in the World, then maybe we deserve to get fleeced.

Isn't any one curious about a contract renewal for EMSA that is coming up in October just before an election in November? A contract that runs 4 years and can't be terminated without a buyout of the entire contract? Consider these observations; same director since inception now approaching $240K yr not including perks, raises for him and managers included in a 16 page contract that C Bird, board member and former councilor and mayoral aide, didn't even read before signing, no councilor dared bring up the contract till World ran story (isn't anyone curious why the World dumped on the Mayor and EMSA so publicly and near elections?) duplication of efforts passed off as necessary even though half the operation subsidized the other half, a proposal to replace EMSA with TFD shelved by a mayor who, coincidentally,  informed the TFD that they can no longer support candidates in local elections, is spending $28,000 on terrazo flooring for bathrooms, is buying $1000 dollar chairs (hello Herman Miller) is owned by a company in Texas, has managed to solidify collections of operating fees by using COT billing and won't let people opt out easily even though their own insurance companies probably pay the $1500 in pickup fees as well. (edit: My understanding is that we not only do their billing and collections but we also paid for and own the vehicles they operate. If true they may very well be soon running informercials at 2am selling the idea on dvd's.)

Doesn't anyone else hear a corporate belch and fart here? THis is the kind of stuff fiscal conservatives generally get riled up about.

for heaven's sake. He said he was awful busy and concedes he should have looked it over....Need a board member who has the time and ability to analytically read? I'LL TAKE THE JOB!!

Just sign the contract,then you can see whats in it.  ;)

EMSA officials faced tough questions Wednesday from board members and officials in Oklahoma City upset over fund transfers from the agency's Tulsa division.

Meanwhile, EMSA said it just learned it has $1.1 million in remaining funds from Tulsa's 2006 sales tax to spend on capital needs but doesn't need the money.

The Emergency Medical Services Authority is a government agency that manages ambulance services for more than 1 million people in Tulsa, Sand Springs, Jenks and Bixby, as well as Oklahoma City and numerous suburbs in that area.

At a meeting Wednesday of trustees who oversee the agency, trustee Ed Shadid questioned EMSA Chief Executive Officer Steve Williamson about an $800,000 loan from the agency's eastern division, which includes Tulsa, to the western division, which includes Oklahoma City.

Shadid, also a city councilor in Oklahoma City, said City Manager Jim Couch had sent EMSA a letter last month stating the city did not want such transfers to occur.

"We don't want a loan between divisions. We don't want to pay interest...I think the letter from Mr. Couch is pretty clear. We don't want this happening," Shadid said.

The Tulsa World revealed the $800,000 loan in a story Tuesday.

While residents in both Tulsa and Oklahoma City both pay optional fees on their utility bills for EMSA service, Oklahoma City does not give the funds to EMSA all at once as Tulsa does.

EMSA Chief Financial Officer Kent Torrence said the funds were transferred to cover shortfalls in the Oklahoma City division. He said EMSA has taken steps to avoid future borrowing between the two divisions by building up a reserve fund in the western division. Torrence said the western division is repaying the amount owed with interest.

The transfers also riled officials in Tulsa, who say they do not want fees from Tulsa subsidizing operations in EMSA's Oklahoma City operation.

Laura Johnson, assistant city manager for Oklahoma City, said the transfers "were a huge surprise to me." Johnson, who attended the meeting Wednesday, said Oklahoma City officials believed the deficit to be $200,000.

"One of the things we've talked about was that it should not be a surprise," Johnson said.

Torrence said the transfers were due to a large number of capital expenditures and the "ebb and flow" of budget cycles.

Johnson said EMSA should consider deferring capital expenses, adding: "There ought to be a better way to control the expenses."

Williamson said he had scheduled a meeting with Couch to discuss the matter.

"I'm trying to find a solution. We're not overspending the budget," Williamson said.

A Sunday Tulsa World story revealed that EMSA has spent funds over the years on items including a $1,000 Christmas tree, a $1,700 chair, a $9,000 area rug and a $3,200 barbecue grill. EMSA's spending in the current budget includes $44,000 for lobbyists and $104,000 for "community relations" statewide. The agency has budgeted $30,000 a year statewide for "website development" through 2016, records show. Trustees also approved a $200,000 remodeling project for the agency's corporate office in Tulsa at their meeting Wednesday.

Williamson defended the expenses, saying they were necessary items bought over time and some had lasted for more than a decade.

Shadid asked for a report on what services EMSA is getting for its money spent on lobbyists and public relations firms.

Williamson also told trustees that he learned Tuesday the city of Tulsa has $1.1 million in remaining funds earmarked for EMSA from the 2006 third-penny sales tax initiative. The $463 million package approved by voters included $3 million to fund capital needs for EMSA.

EMSA has spent $1.9 million so far on new ambulances but city officials told EMSA two years ago not to expect more, due to declining sales tax revenues, Williamson said. He said now that he has learned more tax money is available, "I just don't have a need for that money."

He suggested trustees consider an agenda item to discuss the leftover tax funds at their next monthly meeting.

Clay Bird, a trustee representing the city of Tulsa, said after the meeting he would favor using the third-penny funds for another city of Tulsa purpose.

Read more from this Tulsa World article at http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20111027_11_A1_CUTLIN525858

Will all there overhead there is no way they are cheaper then using our own fire department which I though was the reason we used EMSA.

I dont mind the grill as long as its used for the employees....But a 9,000 rug and 1700 dollar chair....pancakes......

Huge stack of pancakes

You cant W.T.F I guess.....

There's another article about EMSA in the TW about ownership of the ambulances.

It looks like they're under a magnifying glass now.

Sorry, AM, I don't have a problem with spending a little more in capex to improve the morale of employees by improving their work environment.

The ice cube is definitely way too nice by your standard, especially if it came with the Aeron chairs at every cube that Wiltel had, and even if the city did take out the break areas on every floor. If they didn't (I haven't been in there since the city bought the building, so I don't know), it's way, way too nice.

Who cares about what Wiltel had.

You ought to if you really want to embark on a crusade against public employees having nice workplaces, since the city has it now. So much glass is too expensive to wash, we really should board up the windows to save some money.

We're having parallel conversations. Or you're trying to deflect the real conversation to something you can defend.

I support  comfortable workplace environments for public employees. These are not public employees. These are not just comfortable workplaces either, they are excessive by most office standards. I have worked in offices for for 40 years and never saw those kinds of expenditures outside of the top floor executive suites at an oil company. Somehow, ceramic tile, standard office chairs and metal desks, later replaced by composite wood desks were the standard and worked fine.  I support good equipment for real public employees and am embarrassed at what they have to put up with.

But, you digress. This is more than excessive furnishings expenditures.

We're having parallel conversations. Or you're trying to deflect the real conversation to something you can defend.

As best I can tell, this "waste" makes up a tiny portion of EMSA's budget. A drop in the bucket. If you could show that they were continually spending a significant fraction of their budget on luxury goods, I'd be a lot more inclined to agree with the complaints. I don't really care how they build/renovate a building, as long as the budget for doing so isn't excessive. They know better than I do what they need.

I'm not defending so much as noting that the complaints here seem to be based only tenuously on what we actually know happened.

Just move away from your focus on the expenditures for furnishings and buildings and take a referee's look at this entity. Unless you have some tie to them, you can't help but shake your head.

EMSA has been transferring funds from its Tulsa division to subsidize operations in Oklahoma City for at least seven years with amounts owed as high as $2 million, records show.

Meanwhile, the agency announced plans Monday to be more transparent with its financial information, including monthly visits to Tulsa City Council meetings.

The Emergency Medical Services Authority is a government agency that manages ambulance services for more than 1 million people in Tulsa, Sand Springs, Jenks and Bixby, as well as Oklahoma City and numerous suburbs in that area. The agency receives about $4.8 million a year from a monthly utility bill fee paid by Tulsans. It also receives revenues from a utility bill fee in Oklahoma City.

Oklahoma City officials were rankled last week after learning the agency's western division owed $800,000 to the eastern division, requiring interest payments. In an earlier letter, City Manager Jim Couch had asked EMSA CEO Steve Williamson to notify city officials immediately if expenses would exceed revenues.

Officials in Tulsa have also expressed concern about the transfers, saying they do not want tax money from Tulsa subsidizing operations in Oklahoma City.

Records show the practice has been going on for years. A letter written May 5, 2010, by EMSA CFO Kent Torrence stated the loan balance at that time was $1.8 million due to higher than expected expenses, lower revenues and budget miscalculations. The letter was sent to Oklahoma City Deputy Budget Director Doug Dowler.

"The West has had some balance payable to the East for the last five years," Torrence's letter states.

Since 2005, fiscal year-end balances owed by Oklahoma City to Tulsa ranged from a low of $200,000 last year to $2 million at the end of fiscal year 2010.

Ed Shadid, an EMSA trustee and city councilor for Oklahoma City, said officials in Oklahoma City learned about the transfers between divisions in May 2010 and told Williamson to take steps to discontinue the practice.

"Here we are 18 months later and we've got an $800,000 balance," Shadid said. "It seems as though EMSA leadership is testing some boundaries. They will find that the city of Oklahoma City's boundaries are firm."

Torrence said steps have been taken to eliminate the need to transfer funds between divisions, including building up a reserve fund in Oklahoma City.

The agency has also announced steps to make its finances more transparent. The changes follow an investigation by the Tulsa World that found the agency had spent funds on items including a $9,000 area rug, a $3,800 trophy case and a $15,000 stone feature with EMSA's logo. It also budgeted spending nearly $150,000 for lobbyists and public relations costs statewide this year.

In a written statement, EMSA board chairman James Griffin said the expenses "only add up to a minuscule portion of our budget" and the items were purchased over the past 30 years.

"While it appears we have not been transparent throughout this process that has not been our intent," the statement says. "Going forward, we are implementing new initiatives and enhancing current practices to make it easier for elected officials and citizens to access and understand our finances."

Steps EMSA announced Monday include easier access to EMSA financial reports, archived video of agency board meetings and annual reports, all to be available on the agency's website. EMSA will also resume the practice of giving a monthly financial review to Tulsa city councilors.

Not sure I understand why Tulsa would be upset over the transfer - it is paid back with interest between divisions.

I take back what I said about poor service from EMSA. I was in a significant rear end collusion (no laughing) that totaled the car driven by the guy that "rear ended" me (still no laughing). I was almost KO'd but after I got into the ambulance and received great care from the medics, everything turned out to be okay. The wife's reassurances were helpful. I anticipate tomorrow's degree of suck will be off the charts--starting to feel it now.

Sorry you got tagged so hard.  Speedy recovery and I hope you're not too sore tomorrow.

Accidents are always disturbing no matter how small. Glad you're intact and got good care. I passed by a pickup truck on I-44 and Yale this morning where the driver was not so lucky. The truck was flattened and the driver was laying nearby under a blanket. Never heard or saw anything on the news. Driving in Tulsa is downright scary bad.

For the life of me I do not understand how the driver of the car escaped unscathed. The entire front end of his car was crushed to the firewall and the impact threw me from my seat to the passenger floor. There had to be some Divine intervention involved since no one got seriously hurt. Both of us actually walked away in the end. Very weird.

The wife has me prepared for what's coming tomorrow so I'm good.

Significant portions of ethanol based adult beverages?  Locally brewed? 

This is Oklahoma so I doubt the other driver was wearing his seatbelt. 

Ain't that what airbags are for? ;)

LOL. Have you ever been in an accident and had the air bag deploy? Talk about something freaky. And the smell reminded me of gunpowder.

Ain't that what airbags are for? ;)

I am one of the dozen or so people in the world that believe seat belts are able to help a driver maintain control of their vehicle in the event of a surprise.  Airbags should be the last resort.

I should clarify that I'm actually in complete agreement with you on the seat belt thing. My earlier post was a sarcastic joke.

I'm lucky in that I'm young enough that all cars had belts by the time I was old enough to remember anything and my parents made me use them, so they don't bug me in the least. Well, I take that back. I don't think my dad's early 60s Cadillac soft top (powder blue and longer than most boats) had belts in the back. Heck, it might not have had them in the front. I don't recall, as he got rid of it when I was 6 or so.

My dad was in a head-on collision when I was a teenager (actually the day I got my driver's license) when a driver crossed lanes around a snow covered curve in upstate NY. 

LOL. Have you ever been in an accident and had the air bag deploy? Talk about something freaky. And the smell reminded me of gunpowder.

I should clarify that I'm actually in complete agreement with you on the seat belt thing. My earlier post was a sarcastic joke.

I'm lucky in that I'm young enough that all cars had belts by the time I was old enough to remember anything and my parents made me use them, so they don't bug me in the least. Well, I take that back. I don't think my dad's early 60s Cadillac soft top (powder blue and longer than most boats) had belts in the back. Heck, it might not have had them in the front. I don't recall, as he got rid of it when I was 6 or so.

Off topic but anywhere close to Oneonta?

The EMSA Board of Trustees holds a meeting halfway between its two divisions tomorrow. The board will meet in Stroud to discuss a recent state audit.

The audit, from State Auditor and Inspector Gary Jones,  was highly critical of the ambulance service and its spending habits. The audit also blasted the service's  chief officer Steve Williamson for extravagant spending and disregard for tax payers.

EMSA Board Chair Lillian Perryman says some things could have been handled differently and the board will look at best practice policies.  She says patient care was never compromised and the service did nothing illegal.

EMSA has two division, one here in Tulsa were the service was founded. The other is in Oklahoma City, where it expanded in the 1990s.

EMSA approves $400 hike in ambulance transport fee to fund lawsuit defense

Price increase would help pay for lawsuit defense

By Curtis Killman Tulsa World Aug 23, 2017 Updated 8 hrs ago 8
The board that runs the Emergency Medical Services Authority approved a $400 increase in the price of an emergency transport in the Tulsa area Wednesday to help offset increased costs, including legal fees associated with defending the agency in a federal kickbacks lawsuit.

The Board of Trustees voted to increase the emergency ambulance transport fee 31 percent, taking it from $1,300 to $1,700, for the Eastern Division of EMSA’s jurisdiction.

The Eastern Division includes Tulsa and three suburbs.

The rate, to be effective Sept. 1, would have to be approved by the Tulsa City Council to become final.

The transport fee increase does not require the approval of city councils in the other member cities in the Eastern Division — Bixby, Jenks and Sand Springs, EMSA spokeswoman Kelli Bruer said.

The emergency transport rate will remain $1,300 in the Western Division, which includes Oklahoma City and suburbs.

EMSA typically reviews rates every four or five years, Bruer said. The last rate increase occurred in 2012.

Bruer said EMSA had planned to request an increase in transport rates or utility fees for the Tulsa area in fiscal year 2019. But unanticipated legal fees associated with the agency’s defense in the lawsuit necessitated the need to move the request up one year.

The U.S. Attorney’s Office in Sherman, Texas, announced in January that it had joined with a whistleblower’s lawsuit that alleges that EMSA and EMSA President and CEO Stephen Williamson conspired with a former ambulance contractor to violate anti-kickback statutes and the federal False Claims Act.

The complaint alleges that a Texas hospital and ambulance provider functioned as Williamson’s “all purpose slush fund” to pay for gifts, spa treatments, campaign contributions and travel, among other items.

The lawsuit claims that the so-called “pay to play” scheme violated anti-kickback statutes and the False Claims Act, costing taxpayers “tens of millions” of dollars over a six-year period ending in 2013.

The Tulsa World reported Wednesday that EMSA has spent nearly $2 million in legal costs to mount a defense in the federal case in Texas, along with defense costs associated with another civil case making similar allegations in Tulsa federal court

A memo sent to EMSA Board of Trustee members explaining the need for the rate increase indicates that legal fees are expected to increase $2.4 million in fiscal year 2018 over the previous year.

The agency cited increased capital costs and employee compensation/benefits for nonmanagement personnel as other reasons for the rate hike.

“No rate increase is budgeted for the Western Division as Oklahoma City has left all utility funds received in the utility fund,” EMSA Chief Financial Officer Kent Torrence said in a memo to board members regarding the rate increase.

The city of Tulsa, meanwhile, has drawn $6.6 million from the utility fund for non-EMSA needs, Torrence said.

The memo refers to funds collected by Tulsa and Oklahoma City through a monthly, voluntary utility fee. Both Oklahoma City and Tulsa collect a monthly fee from their utility customers to pay their share of the costs for ambulance service.

The monthly fee, paid through monthly utility bills, is $3.65 in Oklahoma City and $5.45 in Tulsa and its involved suburbs.

Payment of the monthly fee enrolls households in the EMSACare program, which covers all out-of-pocket costs of emergency transports for its members.

EMSA’s total costs are split between the two divisions based on a formula that calls for the Western Division to pay 53 percent of the total costs.

The rate increase would most heavily affect about 17 percent of EMSA’s patients — those not on the EMSACare program.

Bruer said private insurance typically pays all but about 20 percent of an ambulance transport bill but that the actual amount owed can vary based on a patient’s coverage.

Time  for the Tulsa Fire Department to get back in the game.

The Council decided not to vote on the issue of the rate increase last night.  I was not aware that Phil Lakin sits on the EMSA Board of Trustees as the nominee from the Tulsa City Council.

I like Phil, but I question why he didn’t nut up and tell the rest of the trustees Tulsa and the surrounding communities should not be stuck shouldering the entire rate increase for the alleged malfeasance of EMSA management.  I also feel like with Phil’s influence on other City Councilors this will come to pass.

Councilor Ewing asked what would happen if EMSA loses the lawsuit and he was told it was likely EMSA would file bankruptcy.

EMSA certainly has a problem on its hands, but I fail to see why it is incumbent upon the citizens covered by EMSA’s eastern district to shoulder the costs.  Why EMSA’s board hasn’t waylaid Steve Williamson already just baffles me.

http://www.tulsaworld.com/news/government/city-council-ponders-emsa-rate-increase-request-but-delays-action/article_d18ce468-1c9d-578e-8585-098be7e8bb66.html

I like Phil, but I question why he didn’t nut up and tell the rest of the trustees Tulsa and the surrounding communities should not be stuck shouldering the entire rate increase for the alleged malfeasance of EMSA management.  I also feel like with Phil’s influence on other City Councilors this will come to pass.

Councilor Ewing asked what would happen if EMSA loses the lawsuit and he was told it was likely EMSA would file bankruptcy.

EMSA certainly has a problem on its hands, but I fail to see why it is incumbent upon the citizens covered by EMSA’s eastern district to shoulder the costs.

From the first article posted on this topic:

EMSA approves $400 hike in ambulance transport fee to fund lawsuit defense

Price increase would help pay for lawsuit defense

By Curtis Killman Tulsa World Aug 23, 2017

“No rate increase is budgeted for the Western Division as Oklahoma City has left all utility funds received in the utility fund,” EMSA Chief Financial Officer Kent Torrence said in a memo to board members regarding the rate increase.

The city of Tulsa, meanwhile, has drawn $6.6 million from the utility fund for non-EMSA needs, Torrence said.

I'm lucky in that I'm young enough that all cars had belts by the time I was old enough to remember anything and my parents made me use them, so they don't bug me in the least. Well, I take that back. I don't think my dad's early 60s Cadillac soft top (powder blue and longer than most boats) had belts in the back. Heck, it might not have had them in the front. I don't recall, as he got rid of it when I was 6 or so.

When my nephew's car slid off the highway, it flipped upon contact with the cable barrier.  The car began rolling along the top of the barrier, the metal posts leaving neat squares as they impaled the car body tumbling lengthwise down the cables.

He survived because he wore seat belts, and made his passengers do likewise.

And yet somebody out there will have a story that no one survived due to seat belt use.  It's not perfect but it's better than getting thrown around in the cabin of the vehicle.  A few auto racing crashes I survived with little more than a concussion or less made me a believer in belts a long time ago.

And yet somebody out there will have a story that no one survived due to seat belt use.  It's not perfect but it's better than getting thrown around in the cabin of the vehicle.  A few auto racing crashes I survived with little more than a concussion or less made me a believer in belts a long time ago.