The New York City Fire Department, hoping to recover some of the $50 million lost on ambulance fees annually, will enlist the help of a collection agency, the department revealed Thursday.
The department rakes in about $170 million each year by charging patients for ambulance service, but about 25% of those transported - most of them lacking health insurance - do not pay, department officials say. The department is accepting bids on the contract through Jan. 28.
The FDNY sold off approximately $150 million in debt to MedCLR Inc. in August 2007 for $3.6 million. MedCLR's contract expired in May 2010.
Department officials conceded it will unlikely be able to sell its debt for anything near $50 million - but pointed out that any extra revenue would help dent the agency's current budget deficit of nearly $23 million.
For years, the department hired outside law firms to track down debtors, but the recovery was marginal because most of the uninsured patients did not have assets worth pursuing.
"We do have an obligation to taxpayers, especially in these tough fiscal times, to recover as much in fees for services rendered as possible," says department spokesperson Frank Dwyer, who stressed that ambulance service would not be denied to anyone in need.
