In 2007, it was decided by Council to approve the take over of the private industry Ambulance Service to "enhance" revenue. On the surface, it was estimated the take over could generate $1.2 million per year. Toledo Blade article
As it would begin in July of 2007, it was estimated the revenue generated would be approximately $600,000. There was no consideration in the model to include the cost of labor for the service as the fireman "They agreed the department could staff the five basic life support ambulances with current firefighters". In reviewing the budget, with benefits, wages and pension, the Toledo paramedics who would staff the ambulances earn an average of $45.00 per hour.
To determine the true cost and net revenue, the cost of labor must be considered in addition to the loss of revenue which would have been generated through taxes if the services had been performed by the private sector. The model used to determine the gross revenue and total profit of this service should include:
# of Runs
Total manhours for runs
Total $ Billed
Total $ Received
Amount of revenue lost from private sector through fees and taxes
Cost of Vehicles
# of Vehicles leased
Any maintenance costs
Manhours to maintain
(clean, fuel, restock supplies, etc)
Were additional fire fighters called to report to fight a fire because the on-duty men were on an ambulance run and not available?
If so... additional cost for this coverage.