Two things:  

Well we don't fund our entire operations with tax payer money, hence the charging.

That's because your entire operation is a cash hog!  You are not operating cheaply, because you have a taxpayer funded supply of cash.   Plus, you don't pay for any of your facilities, it's all tax funded.  And, you have access to federal government surplus, that normal commercial businesses don't (surplus aircraft, surplus GSE, surplus grants, civil servant benefits, municiple courts and DA's to act as "dept collectors", etc.)   There is NOTHING about your operation that is cost efficient!

Unfair Competition!

Law enforcement and fire are mostly on scene first so it makes sense that we transport people.

That's because you have a mon0p0ly on the calls.  You are your own EMS authority!   No problem if you are operating a strict public aircraft operation.   But, you use public aircraft to compete against commercial operators.

Unfair Competition!

It's all about saving lives, right? Golden hour and all that?

Yet, you seem to forget you CHARGE for that while being the mon0p0py authority.  If savings lives is what's most important to you, then you wouldn't bill for it since TAXPAYERS already fund you whole operation.   You can fly zero patients but still are raking in the taxpayer money to cover your operating costs.   The billing is for profit; its for a revenue generating over and above your tax collection.

UNFAIR COMPETITION!