HomeMy WebLinkAboutItem 2j - Ambulance Billing Services ExtensionROPER MINA
21192
STAFF REPORT
Fire Department
DATE: May 19, 2015
TO: Honorable Mayor and City Council
FROM: Kurt Norwood, Fire Chief
Michael Lang, Deputy Fire Chief
By: Maria Lourdes A. Taylor, Senior Management Analyst
SUBJECT: EXTENSION TO THE PROFESSIONAL SERVICES AGREEMENT WITH
WITTMAN ENTERPRISES, LLC FOR AMBULANCE BILLING AND
COLLECTION SERVICES
Recommendation: Approve
SUMMARY
On July 20, 2010, the City Council awarded a five -year Professional Services
Agreement to Wittman Enterprises, LLC. Wittman Enterprises, LLC is reaching the end
of their term and has submitted a written offer to extend the existing Professional
Services Agreement for providing ambulance billing and collection services to the City
of Arcadia for the next three Fiscal Years with no changes in their net collection service
fee (5% of the total ambulance billing receipts for the City). For the past five years,
Wittman Enterprises, LLC has provided excellent customer service and collection
revenue results. Therefore, it is recommended that the City Council authorize and
direct the City Manager to execute a one -year Professional Services Agreement
extension, with the option to renew for an additional two one -year extensions thereafter,
with Wittman Enterprises, LLC for ambulance billing and collection services in an
amount of $87,000. Attached is a draft copy of Amendment No. 1 to the Professional
Services Agreement with Wittman Enterprises, LLC for Fiscal Year 2015 -16.
DISCUSSION
Ambulance billing and revenue collection is a complicated process that involves
gathering patient insurance information, navigating through the Medicare and Medi -Cal
systems for reimbursement, maintaining compliance with governmental regulatory
requirements, and continuous training on the ever - changing health care laws and
Medicare regulations. For these reasons, the function of ambulance billing and
Ambulance Billing and Collection Services Contract Extension
May 19, 2015
Page 2 of 3
collection services was outsourced in 2001 to a private medical billing company with
expertise in the realm of ambulance billing. This decision has proved to be an efficient
and cost - effective alternative over in -house billing.
In July 2010, the City Council awarded Wittman Enterprises, LLC ( "Wittman ") a five -year
Professional Services Agreement that will expire on June 30, 2015. The City revenues
collected by Wittman from their ambulance billing and collection services primarily
depend on the quantity of transported patients by the Arcadia Fire Department
personnel and the type of emergency medical services rendered to each patient. As a
point of reference, since 2010, with approximately 3,500 emergency medical service
(EMS) calls received annually by the Arcadia Fire Department, up to 2,800 or 80% of
these calls required patient ambulance transport and pre - hospital care from our Fire
Paramedic personnel, generating an average of $1.4 million annual revenues collected
by Wittman on behalf of the City.
Additionally, on February 1, 2014, Wittman collaborated with the City in the seamless
implementation of using an electronic Patient Care Reporting (ePCR) system by the
Arcadia Fire Department. In the past, Patient Care Reports (PCRs) were manually
completed by Fire Personnel using paper forms. An ePCR system utilizes computer
tablets and streamlines and the PCR documentation and reporting methods. Wittman
agreed to absorb all upfront costs associated with the system conversion, without
interest or additional fees. Furthermore, when ePCR became effective, Wittman agreed
to reduce their total net collection fee at that time from 5.3% to the current 5.0 %.
Wittman has been providing exceptional customer service to the City and its patients
and has optimized revenue recovery on behalf of the City. Wittman has always kept
City staff abreast of the latest changes in health care laws and Medicare regulations.
With the majority of its clients in California, Wittman Enterprises, LLC, is a national firm
that has been specializing in ambulance billing and collection services for the past 24
years. The work that has been assigned to Wittman has been consistently performed in
a timely, efficient, and professional manner. A toll -free 800 number is also provided to
City residents for inquiries or concerns about their bill.
This year, Wittman has approached the City in extending their contract for the next
three Fiscal Years through Fiscal Year 2017 -18 with no increase in their total net
collection fee of 5.0 %. It is proposed that the City enter into a one -year contract
extension for Fiscal Year 2015 -16, and an option to renew for an additional two one -
year extensions through Fiscal Year 2017 -18.
FISCAL IMPACT
The Fiscal Year 2015 -16 has budgeted $1,520,000 in revenues collected from
ambulance services. Therefore, the 5.0% total net collection fee that will be paid to
Wittman will be $76,000. In addition, the City will reimburse Wittman for the annual
Ambulance Billing and Collection Services Contract Extension
May 19, 2015
Page 3 of 3
ePCR licensing fee for an annual amount of $11,000. Thus, the contract amount for the
ambulance billing and collection services totals to $87,000. Sufficient funds have been
budgeted in the proposed Operating Budget for Fiscal Year 2015 -16.
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to
execute a one -year extension to the Professional Services Agreement, with the option
to extend for two one -year additional terms, with Wittman Enterprises, LLC for
ambulance billing and collection services in the amount of $87,000.
Approved:
Dominic Lazzare�t
City Manager
Attachment: Amendment No. 1 to Professional Services Agreement with Wittman
Enterprises, LLC
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT FOR THE
AMBULANCE BILLING AND COLLECTION SERVICES
� ey
BY AND BETWEEN THE CITY OF ARCADIA
AND WITTMAN ENTERPRISES, LLC
This Amendment No. 1 ( "Amendment No. 1") is hereby entered into this day of
, 2015 by and between the City of Arcadia, a municipal corporation of the
State of California, and Wittman Enterprises, Inc., a Limited Liability Company, with respect to
that certain Professional Services Agreement between the parties dated August 11, 2010
( "Agreement ").
The Parties agree as follows:
1. Pursuant to Section 3.1.2 of the Agreement, the Term is hereby extended from July 1,
2015 to June 30, 2016 ( "Extended Term ").
2. All terms and provisions of the Agreement not amended by this Amendment No. 1 are
hereby reaffirmed.
In witness whereof the Parties have executed this Amendment No. 1 on the date set
forth below.
WITTMAN ENTERPRISES, LLC
Title
Dated:
4:
Title:
Dated:
CONCUR
Stephen P. Deitsch Kurt Norwood
City Attorney Fire Chief