PARAGOULD, Ark. (KAIT) - Two Air Evac Lifeteam bases in Arkansas have closed, including the base in Paragould.
President of Air Evac Lifeteam President Seth Myers said the main reason for the closures was low reimbursement for air medical flights.
“Medicare and Medicaid do not come close to reimbursing air medical companies for the actual cost of a flight,” Myers said. “More than 70 percent of these people we fly are either on Medicare, Medicaid, or have no insurance.”
Myers also said that low reimbursement rates from Blue Cross Blue Shield of Arkansas made it where they could not maintain the bases in Paragould and Morrilton.
Myers said it costs $3 million to operate one base, and more than 87% of those costs are fixed.