EMS1 on MEDPAC's Impact on Ambulance Services

In December 2024, the Centers for Medicare & Medicaid Services (CMS) released the first report from the Ground Ambulance Data Collection System (GADCS), highlighting that the costs of providing ambulance services—across public, private, and nonprofit providers—often exceed current Medicare reimbursement rates. The report was notable for including a broad range of provider types, unlike earlier studies by the Government Accountability Office (GAO), which excluded certain providers due to concerns about data reliability.

In March 2025, the Medicare Payment Advisory Commission (MedPAC) reviewed the GADCS report. During this process, MedPAC excluded data from providers that share operational costs with other services (like fire departments or hospitals) and those with costs significantly higher than the average. This resulted in the removal of over half of the services included in the original dataset.

The article suggests that EMS agencies may need to focus on internal strategies—such as adopting telehealth, improving transfer protocols, and optimizing deployment—to manage costs and sustain operations, regardless of changes to Medicare payments.

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