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Medstar loses a guaranteed revenue stream as the City of Fort Worth tightens its


  • Anonymous 4 years ago

    I have noticed a few items in this story that are inaccurate, so I wanted to post a clarification.

    The story indicates that only those without insurance will bear additional costs for transport under the new subsidy-free system in Fort Worth. This is not so.

    MedStar operates on a cost-recovery basis and is a not-for-profit entity under the purveiw of the 15 member cities. In a city which does not provide a subsidy, the user cost is higher than in a city where part of that cost is buffered by a subsidy.

    As the subsidy was applied uniformly to user cost under Fort Worth’s previous pay structure, the change in that structure will also be uniformly distributed across all patients. In Fort Worth, this will mean that a patient bill will increase just over $350 per transport.

    Also, the story indicates that the Membership program has been instituted to generate revenue to cover the loss of subsidy revenue. This is also not the case.

    The MedStar “Star Saver Membership Program” has been in place for more than 25 years and offers residents and those employed in the 15 cities of MedStar’s service area an opportunity to keep potential transport costs low for themselves and their family members.

    Membership fees represent a mere 1.2% of MedStar’s total revenue. Obviously, this is not a program that has been designed to or could possibly cover the loss of tax subsidies.

    The current healthcare system allows cities a choice about subsidies and MedStar to recoup enough revenue to cover costs. However, the landscape of healthcare is changing and whether this model will remain a viable option has yet to be seen.

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