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Richard H. Farr
                                      Executive Director
                                      York Adams
                                      Transportation
                                      Authority

                                      July 19, 2012




Public Shared-Ride
Transportation for Senior Citizens, Persons with
Disabilities and Non-Emergency Medical Transportation
• Defining Shared-Ride
• Understanding the Infrastructure Behind the Scenes
• Human Services Transportation (HST or Shared-
  Ride) Trends
• Adapting to Changes
• Expectations
• Conclusion




Agenda
Why Does it Exist?
  • Help people with no other means to travel to critical life-
    sustaining destinations (doctors, grocery, jobs)
  • Alternatives are too expensive or the traveler is incapable of
    traveling unassisted
  • Allow seniors to age in place
Who Uses it?
  •   Senior citizens
  •   Pregnant mothers
  •   Adults & children with disabilities
  •   MH/MR workshops
  •   Medicaid recipients
  •   All riders receiving discount trips               must be
      pre-screened for eligibility



Defining Shared-Ride
What Does It Do?
 • Provides
   consolidated trips
   (shared ride) between
   origins and
   destinations that are
   not well-served by
   fixed-route transit
   service
 • Operates during
   limited hours, 6 am to
   6 pm, with prior day
   reservations required


  Defining Shared-Ride
What Doesn’t it Do?
  Provide “taxi” service (prior day reservation required)
  Provide one-person, non-stop ride (too costly)
  Provide Emergency Medical Transportation
Commonwealth History
  • State Lottery – 1972
  • Free Transit Program for Senior Citizens – Fixed Route - 1973
  • Shared-Ride Program for Senior Citizens – Demand Responsive –
    1981
  • Welfare to Work - 1997
  • Persons with Disabilities Transportation Program – 2001
  • Human Service Transportation Study
     • Act 44 of 2007
     • Delivered to the Governor July 2009
Federal Medicaid Non-Emergency Medical Transportation
(NEMT) (50% State + 50% Federal Funding) Administered by DPW
There are many programs each with its own Requirements, Funding
Sources and Strict Reporting Standards


PA Shared Ride Overview
• Key Staff                          • Key Cost Drivers
  •   Vehicle Dispatchers             •   Fuel/Insurance
  •   Drivers                         •   Employee Benefits
  •   Mechanics                       •   Tires/Parts
  •   Administrative Support          •   Missed Trips (NS/CX)
  •   Customer Service                •   Subcontractor
      Representatives                     Costs
      • Client Eligibility Experts
      • Call Takers




Supporting Infrastructure
Historical Cost of Non-Wage                                      Historical Cost of Fuel Expense
                   Compensation
             (Health Insurance, FICA, Unemployment Tax, Etc.)
$3,500,000                                                      $2,000,000
                                                                $1,800,000
$3,000,000
                                                                $1,600,000

$2,500,000                                                      $1,400,000
                                                                $1,200,000
$2,000,000                                                      $1,000,000
                                                                 $800,000
$1,500,000
                                                                 $600,000
$1,000,000                                                       $400,000
                                                                 $200,000
 $500,000
                                                                       $-

       $-




                                          Fiscal Year




    Key Cost Drivers
Cost Trends
  • Fuel and Insurance Costs Escalating Much Faster than Inflation
  • Labor Costs Increasing Slower than Rate of Inflation
Demand
  • Population Aging “In Place”
  • Housing Spreading Out (Sprawl)
  • Destinations Spreading Out (Sprawl)
  • More “one-on-one” transportation
  • More complexities requiring greater                      skilled
    skills/management
  • Medical providers who accept Medicaid
  • Increased demand for independence


      Trends
Technology
 • GPS and Automatic Vehicle Location Provide More
   Accurate “Real Time” Information for Customers and
   Management
 • Computing Power Allows for More Complex Route / Trip
   Optimization, BUT Requires Local Customization &
   Calibration
Private Sector
 • Assuming Roles where it Makes Financial Sense
 • Incurring Sizable Cost Increases as Well




 Trends
Trends
$12.00



$11.00



$10.00


                                                                                                    Actual Fare
 $9.00
                                                                                                    Inflationary


 $8.00



 $7.00



 $6.00
         2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   2012




Trends
Trends
State Budget
                                                           Cuts on Human
Observations                                                  Services
 • Fares can not keep up with the Cost of Inflation           2013
                                                          Sequestration?
 • Private Sector Costs are Much Higher to the Consumer
   than the Cost of Providing Shared-Ride Service
 • Less Subcontractors - Unable to
   perform service at fare structure
 • Most Needy Clients are                           Very
   Sensitive to Out-of-Pocket                            Costs
 • HS Programs struggle to fund
   transportation
 • Today’s Economy isn’t Helping
   the Situation


  Trends
What Are The Expectations of These Programs?
  • Provide Low-Cost Trips to the Most Needy in Society
  • Provide a Good, Safe, “Reasonable” Trip to Critical
    Destinations Such As:
    • Persons With Disabilities (PwD) Traveling to Work
    • Senior Citizen to a Senior Center For Meals and Social
      Interaction
    • Low-Income Pregnant Mother Traveling to A Doctor’s Office
    • Child of Low Income Parent Traveling to a Dentist’s Office
  • Be Fully Funded Between Operating
    Subsidies and Passenger Fares
  • Meet all State and Federal Reporting
    Requirements


Expectations
Providers Are Improving Service Efficiency By:
  • Continuing to Improve, Evolve and Invest In Cutting
    Edge Technology
  • Improving Service Coordination
    • Other Regional Providers
    • Resource Sharing
    • Working with HS Providers to Better
      Coordinate Program Times

Service Efficiencies are Needed Due To:
    • Declining Public Funding
    • Customer Base Distributed More Geographically



Improving Efficiency
What Are YOUR
  Expectations of
  These Programs?




Expectations
HST Serves as the “Provider of Last Resort” when Other
Options are not Available or are too Expensive
  •   Family
  •   Fixed-Route Transit Service
  •   Carpooling Subsidies
  •   Taxi or Volunteer Driver Programs
What Can’t Get Lost
  •   Traveler’s Self-Respect
  •   Maintaining Health and Quality of Life
  •   Independent Living For Seniors and Disabled Populations
  •   Access to Jobs
  •   Safe Transportation
HST Service Reductions have a Direct Impact on Other
Public Assistance Programs (e.g. PwD can not get to
work/Centers’ Funding)

 Always Consider
To Maintain Current Service Levels:
  • Providers Continue to Seek Greater Efficiencies to Maintain
    Similar Service Levels
  • Travelers Will Need to Maintain Flexibility as Providers
    Continue to Search for New Ways to Improve Efficiency
  • Continue to Foster Coordination – at all levels
  • Elected Officials Will Need to Find Creative Ways to
    Finance What is A Critical Piece of The Commonwealth’s
    Transportation Infrastructure in an Era of Declining
    Revenues
Service Reduction:
Is an Expensive Option for the State, Federal and Local
Government (increased dependence on Emergency Medical
Care, Job Loss, Expanding Welfare Roles, etc.) and to the
Health, Safety and Welfare of Citizens



Next Steps …
Questions

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Shared ride trends and expectations 2012

  • 1. Richard H. Farr Executive Director York Adams Transportation Authority July 19, 2012 Public Shared-Ride Transportation for Senior Citizens, Persons with Disabilities and Non-Emergency Medical Transportation
  • 2. • Defining Shared-Ride • Understanding the Infrastructure Behind the Scenes • Human Services Transportation (HST or Shared- Ride) Trends • Adapting to Changes • Expectations • Conclusion Agenda
  • 3. Why Does it Exist? • Help people with no other means to travel to critical life- sustaining destinations (doctors, grocery, jobs) • Alternatives are too expensive or the traveler is incapable of traveling unassisted • Allow seniors to age in place Who Uses it? • Senior citizens • Pregnant mothers • Adults & children with disabilities • MH/MR workshops • Medicaid recipients • All riders receiving discount trips must be pre-screened for eligibility Defining Shared-Ride
  • 4. What Does It Do? • Provides consolidated trips (shared ride) between origins and destinations that are not well-served by fixed-route transit service • Operates during limited hours, 6 am to 6 pm, with prior day reservations required Defining Shared-Ride
  • 5. What Doesn’t it Do? Provide “taxi” service (prior day reservation required) Provide one-person, non-stop ride (too costly) Provide Emergency Medical Transportation
  • 6. Commonwealth History • State Lottery – 1972 • Free Transit Program for Senior Citizens – Fixed Route - 1973 • Shared-Ride Program for Senior Citizens – Demand Responsive – 1981 • Welfare to Work - 1997 • Persons with Disabilities Transportation Program – 2001 • Human Service Transportation Study • Act 44 of 2007 • Delivered to the Governor July 2009 Federal Medicaid Non-Emergency Medical Transportation (NEMT) (50% State + 50% Federal Funding) Administered by DPW There are many programs each with its own Requirements, Funding Sources and Strict Reporting Standards PA Shared Ride Overview
  • 7. • Key Staff • Key Cost Drivers • Vehicle Dispatchers • Fuel/Insurance • Drivers • Employee Benefits • Mechanics • Tires/Parts • Administrative Support • Missed Trips (NS/CX) • Customer Service • Subcontractor Representatives Costs • Client Eligibility Experts • Call Takers Supporting Infrastructure
  • 8. Historical Cost of Non-Wage Historical Cost of Fuel Expense Compensation (Health Insurance, FICA, Unemployment Tax, Etc.) $3,500,000 $2,000,000 $1,800,000 $3,000,000 $1,600,000 $2,500,000 $1,400,000 $1,200,000 $2,000,000 $1,000,000 $800,000 $1,500,000 $600,000 $1,000,000 $400,000 $200,000 $500,000 $- $- Fiscal Year Key Cost Drivers
  • 9. Cost Trends • Fuel and Insurance Costs Escalating Much Faster than Inflation • Labor Costs Increasing Slower than Rate of Inflation Demand • Population Aging “In Place” • Housing Spreading Out (Sprawl) • Destinations Spreading Out (Sprawl) • More “one-on-one” transportation • More complexities requiring greater skilled skills/management • Medical providers who accept Medicaid • Increased demand for independence Trends
  • 10. Technology • GPS and Automatic Vehicle Location Provide More Accurate “Real Time” Information for Customers and Management • Computing Power Allows for More Complex Route / Trip Optimization, BUT Requires Local Customization & Calibration Private Sector • Assuming Roles where it Makes Financial Sense • Incurring Sizable Cost Increases as Well Trends
  • 12. $12.00 $11.00 $10.00 Actual Fare $9.00 Inflationary $8.00 $7.00 $6.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Trends
  • 14. State Budget Cuts on Human Observations Services • Fares can not keep up with the Cost of Inflation 2013 Sequestration? • Private Sector Costs are Much Higher to the Consumer than the Cost of Providing Shared-Ride Service • Less Subcontractors - Unable to perform service at fare structure • Most Needy Clients are Very Sensitive to Out-of-Pocket Costs • HS Programs struggle to fund transportation • Today’s Economy isn’t Helping the Situation Trends
  • 15. What Are The Expectations of These Programs? • Provide Low-Cost Trips to the Most Needy in Society • Provide a Good, Safe, “Reasonable” Trip to Critical Destinations Such As: • Persons With Disabilities (PwD) Traveling to Work • Senior Citizen to a Senior Center For Meals and Social Interaction • Low-Income Pregnant Mother Traveling to A Doctor’s Office • Child of Low Income Parent Traveling to a Dentist’s Office • Be Fully Funded Between Operating Subsidies and Passenger Fares • Meet all State and Federal Reporting Requirements Expectations
  • 16. Providers Are Improving Service Efficiency By: • Continuing to Improve, Evolve and Invest In Cutting Edge Technology • Improving Service Coordination • Other Regional Providers • Resource Sharing • Working with HS Providers to Better Coordinate Program Times Service Efficiencies are Needed Due To: • Declining Public Funding • Customer Base Distributed More Geographically Improving Efficiency
  • 17. What Are YOUR Expectations of These Programs? Expectations
  • 18. HST Serves as the “Provider of Last Resort” when Other Options are not Available or are too Expensive • Family • Fixed-Route Transit Service • Carpooling Subsidies • Taxi or Volunteer Driver Programs What Can’t Get Lost • Traveler’s Self-Respect • Maintaining Health and Quality of Life • Independent Living For Seniors and Disabled Populations • Access to Jobs • Safe Transportation HST Service Reductions have a Direct Impact on Other Public Assistance Programs (e.g. PwD can not get to work/Centers’ Funding) Always Consider
  • 19. To Maintain Current Service Levels: • Providers Continue to Seek Greater Efficiencies to Maintain Similar Service Levels • Travelers Will Need to Maintain Flexibility as Providers Continue to Search for New Ways to Improve Efficiency • Continue to Foster Coordination – at all levels • Elected Officials Will Need to Find Creative Ways to Finance What is A Critical Piece of The Commonwealth’s Transportation Infrastructure in an Era of Declining Revenues Service Reduction: Is an Expensive Option for the State, Federal and Local Government (increased dependence on Emergency Medical Care, Job Loss, Expanding Welfare Roles, etc.) and to the Health, Safety and Welfare of Citizens Next Steps …