In need of a lifeline: Seneca EMS faces financial crisis

Seneca’s emergency medical services are facing a financial challenge, and a closure is possible if trends continue.

“If we can make it to January, we will be back in the same spot we are right now,” EMS Chief Casey Lundsteen said.

Illinois is one of 35 states that does not consider emergency medical services to be an essential service, meaning it does not receive any funding from state or federal funds, according to the National Conference of State Legislators website.

In 2009, EMS became a separate entity from the village, and it transferred about $600,000 that it had into an Edward Jones account as an emergency fund, Treasurer Sean Tonnessen said.

According to an Edward Jones financial report as of Sept. 27, that account has a balance of $70,978, when, five years ago, it had $526,319.

“From the outside looking in, it looks like we’ve been pulling from that,” Lundsteen said. “So, almost like our safety net has been more of a necessity.”

Since the separation, EMS has been funded by the Seneca Fire Protection District. In 2009, the two entities agreed that the fire district would give $128,000 a year from its annual budget and agreed to increase the amount by 3% each year.

“The previous administration got an additional $80,000 approved,” Tonnessen said. “So, we’re just under $280,000. … With our yearly raises alone, we have a 3% raise for employees, so that barely covers it.”

According to the 2024-25 fire district budget, the estimated tax income for EMS generated is $492,000 with $151,553 cash on hand, bringing the total funds available to $643,553 – $274,000 of that goes to EMS personnel.

Gerry Johnson, a trustee for the fire district, said the funds had been set aside to buy new medical equipment, buy a new ambulance, pay for dispatch, pay for fuel to run the ambulance and other numbers involved in keeping EMS running.

Lundsteen said the fire district provided EMS with a new ambulance in 2020, and its other ambulance was purchased in 1998.

“They had been stashing money to the side for a while, and we got this one for a really good price,” he said. “And then we have our backup ambulance at the moment, which also probably needs to be replaced in the next five years.”

Tonnessen said EMS has been responsible for purchasing medical supplies.

Johnson agreed that EMS would purchase its own individual medical equipment, with the district buying the bigger equipment such as hydraulic cots.

Johnson said the district is looking at EMS’s financial condition right now to see if the district can help, but it has a limited amount of tax dollars.

Lundsteen said EMS receives about $69,000 quarterly – the district gave EMS a check a month in advance because of the financial situation. The EMS receives the next check in January.

“If we can make it until then, which I believe we probably can,” he said, “but then we’re back in the same spot of ‘How long is that going to last?’”

Because EMS is not a volunteer agency, its biggest expense is payroll to staff the ambulances. EMS employs six full-time employees and three part-time employees with pay ranging from $15 to $25 an hour.

According to the 2024 profit-and-loss report, EMS will spend $473,456 on payroll from January to December. EMS is given $257,593.21 from the fire district. Taking into account other expenses by December, EMS will be operating at a net loss of about $245,700.

Lundsteen said EMS currently is exploring all solutions possible, and changing the billing company is the first solution.

The previous billing company, HealthPCP out of Coal City, was recouping about 8% when it should have been in the 20% to 30% range, Tonnessen said.

With the new company, EMS is hoping to get a better collection rate. According to an Aug. 31 invoice, EMS collected $5,695 from HealthPCP with a 0.085 rate. HealthPCP charged $47,718 for billing and collection, with EMS owing $484.

“We are hopeful that our new billing company, PBS, will increase our billing revenue,” Tonnessen said. “With the billing change, we are also hoping to obtain approval for the GEMT program, which will increase our revenue from Medicare transports.”

EMS will begin with the new billing company Nov. 1.

The Ground Emergency Medical Transportation Program is a statewide program that ensures ambulance services are collecting the necessary funds that are typically “lost” on Medicare transports, Lundsteen said.

Lundsteen said EMS has been working tirelessly to think of other solutions, whether it be fundraisers or offering services for local events.

“We did perform budget cuts earlier this year on salaries, unfortunately. With the rising costs of health insurance and the price of living, we cannot decrease wages any further,” he said.

Lundsteen and Tonnessen said decreasing wages any further would result in employees looking elsewhere for employment, which would be detrimental to the ambulance service, as right now there is a nationwide paramedic shortage.

Last year, EMS received 596 calls for service. About 75% of those were EMS calls.

“Our ambulance does go on every call that comes in as well,” Lundsteen said. “This includes fire alarms, structure fires, brush fires, power lines down, utility complaints, etc.”

This year, EMS has gone on 530 calls, and there are talks of a senior living community looking to build in Seneca. If the development comes to fruition, call numbers will increase.

Lundsteen said EMS is hoping that the community may have potential solutions that EMS may be missing.

“As an employee, as well as a Seneca taxpayer, I wholeheartedly believe the village of Seneca needs an ambulance,” he said.

Village President Jeff Olson said that although he believes Seneca needs an EMS service, it is a separate entity from the village, and he didn’t have enough information to comment on specifics.

Sen. Sue Rezin, R-Morris, said this was the first time she had been made aware of the financial challenges facing Seneca’s EMS, and she already had reached out to the local mayor to learn more about the situation.

“It’s certainly concerning, especially since, like other fire protection district EMS services in the state, Seneca EMS relies on local fees and taxes for funding,” she said. “Given the strength of the local tax base, I’m hopeful we can work together to better understand and address the challenges they’re facing.”

Lundsteen said he is hoping that the community can band together to assist in keeping Seneca EMS running.

“Seneca Fire Protection District Board of Trustee meetings are the second Thursday of every month at 8 p.m.,” he said. “These meetings are open to the public, and the community is welcome to participate in these meetings and voice their concerns for the future of Seneca EMS if they please.”