The State of Ohio has announced it will begin tracking ambulette VIN numbers to cut down on fraud. The move is expected to be one in a series of regulations put in place to crack down on medical transport fraud. The legislation comes after public backlash to reports such as Rapid Medical Transport of Columbus billing the state significantly higher than any other operator. Rapid billed Ohio Medicaid $316,775 for wheelchair transport in 2013, that’s an average of 268 miles or 29 trips every day in a single vehicle. The application to renew his license with the Ohio Department of Public Safety showed seventy three trips in 2013, while he billed 10,425 to Medicaid.
With a few bad operators the spotlight and it’s associated costs are pointed at everyone. Although many companies do not purchase, Directors and Officers insurance should be considered to defray the potentially catastrophic legal fees associated with a regulatory investigation. Directors and Officers insurance also protects the owners against lawsuits from creditors and outside investors.
However, increased oversight should help push out the fly by night EMS companies that have stuck their liability insurers with avoidable claims. Bad operators have pushed up premiums for everyone in the market, better risks in the market lead to lower premiums for all involved. If the new regulations in Ohio reduce waste and fraud other states are expected to follow.
Contact an expert EMS insurance broker to discuss better managing risk in an evolving environment.