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A few weeks back we reported on how Wal-Mart was pilot testing a program to run EMS units out of stores. Now according to some leaked internal emails Costco is also gearing up to be a private EMS provider. Costco though appears to be limiting their EMS business model to transport, and will not be doing emergency 911 response.
A mock up of a Costco Ambulance unit
According to the business plan. “There are plenty of private EMS companies turning profits, Gold Cross, AMR and many other companies run “for-profit” ambulance services. Losses are typically only seen when too many uninsured patients are transported. Given the implantation of Obamacare the instances of uninsured patients should decline.”
Later the plan outlines how focusing on medical transport can maximize profits. “By focusing on medical facility to medical facility transport we are able to bill the requesting facility not the patient. The facility will then have to bill the patient. This ensures fewer bills going unpaid or requiring the use of a collections agency.”
In addition because Costco is a member wholesale club this EMS service will offer benefits to their membership. “In addition to facility to facility transport we will provide non-emergency home to facility transport. Members with minor injuries or feeling too ill to drive themselves to the ER or urgent care clinic can call our EMS for the ride. Much the same as calling for a taxi but with the added benefit of a full licensed Paramedic.”
Costco is also looking at a doing a “Pay as you go” system. Charging transports by the mile and also by consumables used for the transport. Members choosing “Pay as you go” would be asked to pay the bill before being unloaded from the ambulance. The rigs will have credit card readers so patients can easily pay any bill. Patients would always have the option to have the bill sent to insurance but if they opt for “pay as you go” they would be offered deep discounts.
One section of the document was titled Other Justifications and it noted the following. “This service will help relive strain on public EMS services, such as Fire Department based Paramedics. The publicly funded services can focus more on emergency calls, and not be burdened by calls that are best described as a glorified taxi service.” Later in this section it is also pointed out. “Costco already has business relationships with many sports and convention venues so we can also contract with these venues to have paramedics on standby for large events.”
Representatives from Costco were not willing to comment yet on this new service.
