A. What fraud? They should have a quality assurance system like every ems system has, all documentation should be reviewed, if done properly there shouldnt an issue with fraud.
B. Insurance does not dictate what treatment should or should not be done, they may refuse payment, yet the ems responders do not treat according to what insurance pays.
Besides, government already controls ems treatment and protocols.
C. I hope they have a solution to the legal technicalities.
However this is already done for a very long time in a lot if different hatzolah systems, if it works for them, it should work for others.