Meadville council approves third-party billing on first and second reading

Mar. 7—City Council gave unanimous preliminary approval to allowing a third-party vendor to handle billing for fire department services.

Final approval will likely come upon the third and final reading of the ordinance at council's March 17 meeting.

In a presentation last month, Shawn Meder, president of PA Fire Recovery Service LLC, estimated that third-party billing would produce about $24,000 in annual revenue for the city.

Any revenue produced by third-party billing would be restricted for use

A provision in the ordinance tentatively approved on Wednesday would set aside any revenue produced by third-party billing in a fire department reserve fund. The money could only be spent on departmental vehicles.

The new ordinance allows a third-party vendor contracted by the city to pursue payment from insurance companies when clients of those companies receive fire department services. In certain circumstances — such as when a departmental response results from arson or a DUI-related motor vehicle crash, or a series of false alarms — the vendor could pursue payments from individuals rather than insurance companies.

After final passage of the ordinance, council will vote on a schedule of fees for services and materials. A preliminary schedule discussed last month assigned prices of $400 per hour for use of the department's aerial truck and $350 per hour for the lead engine while each 50-foot hose would run $25 and use of a fire extinguisher would cost $50.

Meadville Central Fire Department can currently charge a flat fee of $550 for responding to a structure fire and $330 for responding to a motor vehicle accident. Because of a lack of success in collecting fees and the burdensome process of pursuing insurance companies, the department has not billed for car accidents in several years, according to Chief Patrick Wiley.

Mike Crowley can be reached at 724-6370 or by email at mcrowley@meadvilletribune.com.