State Policy · OR
Oregon Fire District Ends Ambulance Service Citing Medicaid Reimbursement Shortfall
Klamath County Fire District 3 in Oregon voted unanimously August 28, 2026 to discontinue ambulance service, citing unsustainable costs driven by Medicaid and Medicare reimbursement covering only approximately 15% of billed charges. The rural district, which has provided ambulance transport since late 2023, faced additional financial strain from long response times across its vast service area and calls that do not result in billable hospital transports. Ambulance coverage for the eastern Klamath County region will now fall to surrounding agencies with longer response times, while District 3 will continue first-responder services only. The closure eliminates 10 positions and reduces the district's annual budget from $500,000 to $150,000.
Why it mattersThe closure illustrates how Medicaid reimbursement rates can make emergency medical transport financially unviable in rural areas, forcing service reductions that increase response times and strain neighboring providers.