VIRGINIA, USA — A new budget request written by leadership at the Virginia Department of Health (VDH) highlights a $33 million financial shortfall for the Office of Emergency Medical Services (OEMS), impacting the funding structures for locality EMS agencies across Virginia.
The OEMS, which falls within the purview of the VDH, faces $33 million in "unpaid bills" to the state's EMS community and other contractual commitments.
According to the request, the $33 million is broken down by the following:
- Payments due to localities $ 6,658,848
- Rescue Squad Assistance Grants previously awarded* $ 1,223,914
- Replace Trauma Funds utilized for other activities $ 2,360,600
- Payments due to EMS Councils $ 1,906,956
- FY23 and prior unpaid operating obligations $ 4,690,719
- FY24 administrative contractual obligations** $ 16,444,902
The request cites "financial irregularities" as early as June 2023, adding that after an internal audit was initiated:
"...it was determined that financial irregularities had existed going back several years. These included a history of moving funds amongst accounts to cover shortfalls, services being provided without appropriate funding, overspending of contracts, and little to no VDH oversight. After further review by VDH leadership, it was determined that there was potential fraudulent activity, and the Office of the Inspector General and the Virginia State Police were notified."
According to a memo sent by the VDH to EMS leadership across the state, the ongoing budget concerns force OEMS to "not be funding Rescue Squad Assistance Fund (RSAF) grants for the upcoming Spring 2024 grant cycle and therefore will not be taking new applications."
'The dollar amount was disappointing'
Amy Ward, Deputy Chief of Virginia Beach Rescue said it's been a dilemma she's been aware of dating back months to when she was still with Portsmouth Fire & Rescue.
While the debt doesn't necessarily impact the ability to carry out EMS support and transportation, Ward acknowledges that it forces local EMS systems to be more financially aware of the department's budget output.
“The biggest impact for the volunteer rescue squads is the lack of student scholarship programs they typically provide. They’re not supporting that currently and that’s typically used to train new EMTs and providers," Ward said.
"In addition with cancelling the spring rescue squad assistance fund, that’s a huge impact because that’s where we may buy things like ambulances through that match funding.”
'These grants lessen the financial impact to the city budget'
According to Portsmouth Fire Chief Nestor Mangubat, the department has utilized grant funding available through the Rescue Squad Assistance Fund to the monetary tune of $247,344.82 between 2020 and 2022.
In a response to 13News Now, Mangubat noted that money 50/50 grant funding help pay for "two ambulances, replacement stretchers, and computer equipment."
"We are hopeful to apply for the Fall 2024 RSAF grants to assist with the purchase of a replacement ambulance," he added.
The request goes on to say:
Governor Youngkin has authorized approximately $8 million in one-time carryover funds to enable OEMS to make overdue payments in the short-term to include Return to Locality and EMS Council payments. The proposed additional $12.5 million in FY 2024 and an additional $12.5 million in FY 2025 will ensure that OEMS can meet its Code-mandated obligations.