Title
Consider and take action on a resolution authorizing a three-year renewal agreement with Wittman Enterprises for EMS billing for a total amount not to exceed $150,000 (Fire Chief)
Background:
Approval of this resolution authorizing a three-year renewal agreement with Wittman Enterprises for EMS billing for a total amount not to exceed $150,000.
EMS originally contracted with Wittman Enterprises in 2014, for a three-year contract with a one-year automatic renewal option, which has come to term July 2018. A request for proposal (RFP 18-029) was issued in May of 2018. The EMS Department independently evaluated and scored seven proposals submitted utilizing the following matrix: Experience and Qualifications, General Overview and Scope of Services, Proposed Fees, Implementation Schedule, and Technical Abilities. The top three candidates were Wittman Enterprises, Ambulance Medical Billing, and Fire Recovery.
Wittman Enterprises rate per billable call will be $19.99, which is a decrease from their current rate of $26.00 per billable call, for a $6.00 savings per call. As Wittman is the incumbent, there is no implementation schedule or the need to reapply for Medicare and Medicaid payment authorizations, thereby eliminating any periods of non-payment activities that would be unrecoverable.
It has been the goal of EMS to reduce the financial burden of providing prehospital medical care and transport to our citizens. We accomplish this by maintaining a high collection rate. The national average for EMS collections is between 30% and 40%. League City EMS has maintained an average of 60% over the last 4 years.
For FY 2017, the overall EMS budget was $3,261,018.00, which includes an operational (non-personnel) budget of $546,723.00. The EMS collection rate was 55%, which created a revenue amount of $1,484,011.0 and a net cost to the City of $1,777,007.00.
For 2018, the overall EMS budget is at $3,427,109.00, which includes an operational (non-personnel) budget of $645,821.00. The current fiscal year-to-date EMS collection rate is at 59%, which will create an estimated revenue amount of $1,746,898.00. It is projected that the FY 18 Net Cost to the City would be $1,680,211.00.
EMS accomplishes this collection rate utilizing the following methods:
1. Continued monitoring of our billing service (Wittman Enterprises) thru monthly reports.
2. Utilizing a Computer Patient Care Reporting system (PCRs).
3. Reviewing 100% of PCRs for quality prehospital medical care and accuracy of records for billing.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Exhibit A - Agreement with Wittman Enterprises
4. 2018 Recommendation Letter
5. 18-029 RFP EMS Billing
6. 2018 RFP Attachment
7. Vendor Report Card
FUNDING
{X } Funds are available from EMS Professional Services Account #2950000-53050