HomeMy WebLinkAboutItem 2k - Ambulance Billing and Collection Services
DATE: June 20, 2017
TO: Honorable Mayor and City Council
FROM: Michael Lang, 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 IN THE AMOUNT OF $94,600
Recommendation: Approve
SUMMARY
On July 2010, the City Council awarded a five-year Professional Services Agreement to
Wittman Enterprises, LLC to provide ambulance billing and collection services for the
City of Arcadia. Subsequently, on May 19, 2015, the City Council awarded an
additional one-year contract extension to Wittman Enterprises, LLC with the option to
renew for two additional one-year extensions through June 30, 2018. This will be the
last extension for this contract and the Fire Department will go out to bid next year.
Attached is a copy of the Amendment No. 3 to the Professional Services Agreement
with Wittman Enterprises, LLC
BACKGROUND
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. For these
reasons, the function of ambulance billing and collection services was outsourced in
2001 to a private medical billing company with expertise in the realm of ambulance
billing. This decision has proven to be an efficient and cost-effective alternative over in-
house billing.
Extension to the Professional Services Agreement
for Ambulance Billing and Collection Services
June 20, 2017
Page 2 of 3
In July 2010, the City Council awarded Wittman Enterprises, LLC (“Wittman”) a five-year
Professional Services Agreement to provide ambulance billing and collection services
for the City of Arcadia. With demonstrated excellent customer service and collection
revenue results, on May 19, 2015, the City Council awarded an additional one-year
contract extension to Wittman Enterprises, LLC with the option to renew for two
additional one-year extensions through Fiscal Year 2017-18.
DISCUSSION
The City revenues collected by Wittman from their ambulance billing and collection
services depend primarily on the quantity of transported patients by the Arcadia Fire
Department and the type of emergency medical services rendered to each patient. As a
point of reference, in Fiscal Year 2015-16, with approximately 4,000 emergency medical
service (“EMS”) calls received by the Arcadia Fire Department, up to 2,800 or 70% of
these calls required patient ambulance transport and prehospital care from our Fire
Paramedic personnel, generating about $1.5 million in revenues collected by Wittman
on behalf of the City. It is expected that the quantity of patient ambulance transport will
remain the same by the end of this Fiscal Year including through Fiscal Year 2017-18.
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 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, compliance, 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 25 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 submitted a request to the City to extend their contract for an
additional year with no changes in their net collection service fee (5% of the total
ambulance billing receipts for the City). Based on the cost and past experience, it is
recommended that the extension be granted.
Extension to the Professional Services Agreement
for Ambulance Billing and Collection Services
June 20, 2017
Page 3 of 3
FISCAL IMPACT
In Fiscal Year 2017-18, it is estimated that up to $1,550,000 in billing receipts would be
collected by Wittman on behalf of the City. Therefore, the projected 5.0% total net
collection fee that will be due to Wittman is about $78,000. In addition, the City will
reimburse Wittman for the City’s annual electronic Patient Care Report (“ePCR”)
licensing and storage fee in the amount of $16,600. Thus, the contract amount for the
ambulance billing and collection services totals to $94,600.
Sufficient funds have been budgeted in the Fiscal Year 2017-18 Fire Department
Operating Budget for ambulance services.
RECOMMENDATION
It is recommended that the City Council approve, and authorize and direct the City
Manager to execute a one-year extension to the Professional Services Agreement with
Wittman Enterprises, LLC for ambulance billing and collection services in the amount of
$94,600.
Attachment: Proposed Amendment No. 3 to Professional Services Agreement with
Wittman Enterprises, LLC
AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES
AGREEMENT FOR THE AMBULANCE BILLING AND
COLLECTION SERVICES BY AND BETWEEN THE CITY OF ARCADIA
AND WITTMAN ENTERPRISES, LLC
This Amendment No. 3 (“Amendment No. 3”) is hereby entered into this ______ day of
______________, 2017 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”), and further amended by Amendment No. 2 dated June 22, 2016.
The Parties agree as follows:
1. Pursuant to Section 3.1.2 of the Agreement, the Term is hereby extended from July 1,
2017 to June 30, 2018 (“Extended Term”).
2. All terms and provisions of the Agreement not amended by this Amendment No. 3 are
hereby reaffirmed.
In witness whereof the Parties have executed this Amendment No. 3 on the date set
forth below.
CITY OF ARCADIA WITTMAN ENTERPRISES, LLC
By: By:
Dominic Lazzaretto
City Manager Title:
Dated: Dated:
By:
ATTEST: Title:
Dated:
City Clerk
APPROVED AS TO FORM CONCUR:
Stephen P. Deitsch Michael E. Lang
City Attorney Fire Chief