FOR IMMEDIATE RELEASE: July 2, 2003
CONTACT: Mark Funkhouser, City Auditor, (816) 513-3300
Performance audit on MAST’s financial viability released
The City Auditor’s Office released a report today on the Metropolitan Ambulance Services Trust’s financial viability. The auditor concluded that MAST is not financially viable without additional funding.
The report found the following:
MAST’s financial condition has been weak and is now worsening since the federal government started reducing Medicare reimbursement rates for ambulance transports in April 2002.
Misperceptions and lack of analysis have affected MAST’s ability to respond to its financial crisis. Management at MAST has not adequately analyzed factors contributing to the organization’s financial decline and many of its explanations for its decline are not supported by data.
As a result, management’s suggested solutions are unlikely to improve MAST’s financial condition.
The auditor also concluded that MAST does not have written agreements with each jurisdiction it serves although service to other cities does not appear to significantly affect the system cost for Kansas City residents.
The report recommends the Health Department Director provide the City Council with information to evaluate options for providing ambulance service. The report also recommends MAST improve its financial analysis, prepare a request for proposal to secure an operations contractor, and prepare written agreements with each jurisdiction it serves. MAST Management agreed with the recommendations.
This report can be accessed from the City’s Web site (http://www.kcmo.org) beginning July 3.