The city’s emergency medical services fund will likely finish in the black for the year, according to an initial analysis.

In a report to the City Council, Finance Director Don Herz said the analysis of the net income from the EMS fund shows that it will show a small profit for the 2006-2007 fiscal year.

“The recent rate increases have been important to this turnaround, but that does not tell the whole story,” Mayor Chris Beutler said. “Very few cities across the nation – including those with private ambulance providers – are making any profit on EMS.”

A final report for the last fiscal year, which ended Aug. 31, will be available in a few months, Herz said. He said the delay is largely the result of insurance procedures.

The projections are based on the collection rates the department has been experiencing the past few months, he said.

Fire Chief Niles Ford said the changes recommended by an ad hoc committee last year have been largely implemented and have helped bring greater financial stability to the EMS fund.

“I am impressed with the improvement so far,” said Ford. “But we will continue to face challenges, including ongoing changes in the health care industry.”

Ford said one of the major issues nationwide is federal Medicaid and Medicare reimbursement rates. Those rates continue to fall behind the actual cost of the services, resulting in a funding gap of about $2 million for the local EMS fund last year.

The city’s response to emergencies outside city limits also is being examined. The city estimates that being respond to calls in Lancaster County is costing about $180,000 per year.

Beutler recently sent a letter to the Lancaster County Board proposing that the county reimburse one-third of that cost until the end of this fiscal year. That would give the rural fire districts time to work out a plan for a new emergency response system that meets the county’s service needs and the city’s financial needs.