The East Allen Township Board of Supervisors voted July 12 to change the provider of emergency medical services in the township.

Township Manager Brent Green said it was a difficult decision, according to a July 14 news release. He noted the supervisors had been considering this possibility over the last six months.

Green said the crisis in Pennsylvania regarding staffing and fiscal funding of emergency medical services has grown. This crisis engulfed the East Allen Volunteer Ambulance Corps. The staffing challenges and the fiscal crisis profoundly impacted the EAVAC viability, he said.

The township was contacted Jan. 18 by EAVAC leadership regarding the urgency of their position. EAVAC leadership said the organization faced dire and urgent financial losses that jeopardize service coverage because they are not able to pay staff.

The board met with the EAVAC leaders to discuss the matter. After the meeting, the board immediately worked on funding for EAVAC by authorizing a contribution of $50,000 to the organization Feb. 8 to cover payroll and operational expenses.

This financial support was not unprecedented, according to Green. In 2021, the township approved a loan of about $87,962 to refurbish a deteriorating ambulance. In June 2021, the board voted to forgive the loan at the request of EAVAC leadership.

According to Green, the township conducted a comprehensive review of EAVAC finances and determined the financial condition was much worse than originally anticipated. The causes of the financial crisis were reportedly the lack of sustainable call volumes, low Medicare/Medicaid reimbursements, declining subscription renewals, increased staffing costs and a pension plan that led to unsustainable payments to former members.

While this is not the complete cause of the organization’s financial distress, it created a monthly deficit that made continued financial support from the township difficult, Green said.

It was estimated the financial deficit of EAVAC was $26,000 each month, or $320,000 annually, according to Green. To continue ensuring services, the township authorized a payment of about $37,378 to EAVAC April 27 after it requested a second round of funding to assist with covering payroll.

The board held a special meeting with the EAVAC officers May 15. They requested permission to form a committee and time to meet with neighboring EMS providers to review options for EAVAC to continue operating. The goal was to review any partnership or merger options.

During the process of reviewing outside EMS providers, it was noted the EAVAC review process introduced a bias that may have undermined the review, according to Green.

EAVAC presented the committee’s findings at the June 14 supervisors monthly meeting, which recommended a partnership between EAVAC and Nazareth Regional Ambulance Corps.

The board requested financials and documentation related to licensing. A request for documentation was made to the Nazareth Regional Ambulance Corps executive director, but no reply was available until the June 22 board of supervisors public meeting.

This lack of financial transparency reportedly concerned the board and felt making a decision to change any EMS services with the information provided was inappropriate and unfair to East Allen Township residents.

The township reviewed the financial results to cover the projected $320,000 necessary to cover the structural financial deficit determined by the township. Green said it was not financially possible for the township to continue the financial support.

Green explained this would effectively mean East Allen Township would have to contribute $389,000 until tax revenue would be received in June 2024. Green noted, taxes would need to be raised 2.20 mills, or 35%. This would mean a home appraised at $150,000 and has a tax assessment of $75,000 would pay an additional $165 per year.

The township was already projecting a deficit for 2023 of more than $85,000 and did not have the additional $233,000 to cover operating costs for EAVAC. It was deemed irresponsible to the East Allen Township residents to place a large financial burden on the taxpayers, Green said.

He added any future tax increases would mean the township would need to fund EAVAC until June 2024, when the majority of tax revenue is received, and there would be no guarantee, even with a tax increase, EAVAC would be financially solvent.

The supervisors, after comprehensive review of emergency medical services during the last six months, made a motion July 12 to approve the Northampton Regional Emergency Medical Services as the sole basic and advanced life support provider for East Allen Township, effective July 13.

NREMS committed to offer the same quality services as EAVAC and ensured there will be no lapse or loss of emergency medical services to the township, Green said.

NREMS has been the township’s advanced life support provider for more than 15 years, and, when East Allen Township was out of service, provided automatic mutual aid and covered all emergency medical service calls.

The supervisors shared their appreciation for EAVAC for the service it provided to the township for 44 years. The passion and quality of care provided for residents, businesses and visitors was second to none and provided a strong foundation for the next provider, the board said.