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HomeMy WebLinkAboutItem 11k - Change Order for Ambulance Billing Services PO Increase
DATE: April 15, 2025
TO: Honorable Mayor and City Council
FROM: Henry Chen, Administrative Services Director
SUBJECT: CHANGE ORDER TO INCREASE THE PURCHASE ORDER WITH
WITTMAN ENTERPRISES, LLC FOR AMBULANCE BILLING AND
COLLECTION SERVICES IN THE AMOUNT OF $71,000
CEQA: Not a Project
Recommendation: Approve
SUMMARY
On June 5, 2018, the City Council approved a purchase order with Wittman Enterprises,
LLC (“Wittman”), for billing and collection services for the City of Arcadia’s emergency
medical transport services, in an amount not to exceed $83,400. The annual Purchase
Order amount of $83,400 is comprised of a $66,000 collection fee plus $17,400 for an
electronic Patient Care Report (“ePCR”) license, based on estimated annual collections
of $1.55 million. The agreement between Arcadia and Whittman calls for Whittman to
receive a 4.25% fee on the amounts they collect. Due to higher transport volumes, the
collections in the current fiscal year have increased to an estimated $3.1 million. The
original Purchase Order amount is not sufficient to cover the fees on their increased
collections. As a result, an increase in the Purchase Order to cover the increased
collection fees is requested.
It is recommended the City Council approve a $71,000 increase to the Purchase Order
with Wittman for the ambulance billing and collection services for the remainder of Fiscal
Year 2024-25. The additional cost will be offset by the additional fees collected and
administered by Wittman.
DISCUSSION
Annually, the Arcadia Fire Department receives over 6,000 incident calls, with 70% of
calls requiring rescue and emergency medical service. Ambulance charges, also called
Emergency Medical Services (“EMS”) fees, are the single largest revenue source for the
Fire Department. The revenues collected for these purposes depend primarily on the
quantity of transported patients and the type of emergency medical services rendered to
each patient. The Fire Department only bills for EMS calls that involve medical transport.
Change Order for Ambulance Billing Services
April 15, 2025
Page 2 of 3
On June 5, 2018, the City Council approved a purchase order with Wittman Enterprises,
LLC (“Wittman”), for billing and collection services for the City of Arcadia’s emergency
medical transport services, in an amount not to exceed $83,400 annually. The cost was
broken down as $66,000 for the collection of fees, based on a 4.25% charge on fees
collected, plus $17,400 for annual electronic Patient Care Report (“ePCR”) licensing. The
original Purchase Order amount of $83,400 in FY 2018-19 was determined by previous
call volumes, billable EMS transports, and projected revenues of $1.55 million annually.
Due to an increase in overall transport volume as well as the addition of a Basic Life
Support (“BLS”) ambulance program, the collection fees the City is required to pay to
Wittman have increased beyond original expectations. For FY 2024-25, projected
revenue should total $3.1 million, with an estimated 3,400 billable EMS transports. Under
these projections, the 4.25% collection fee to Wittman will also increase to $131,800. The
current annual ePCR licensing and storage fee is $22,600. The table below summarizes
the increase in fees from FY 2018-19 compared to FY 2024-25:
FY 2018-19 FY 2024-25 Increase
Ambulance Collections 1,550,000$ 3,100,000$ 1,550,000$
Collection Fee @ 4.25%66,000$ 131,800$ 65,800$
ePCR License Fee 17,400$ 22,600$ 5,200$
Total Fees:83,400$ 154,400$ 71,000$
The original Purchase Order amount is not sufficient to cover the collection fee to Wittman
for the increased collections. An increase of $71,000 to the Purchase Order will cover the
additional collection fees and is requested for the remainder of FY 2024-25.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the
environment.
FISCAL IMPACT
In FY 2024-25, it is estimated that Wittman will collect $3.1 million in billing receipts for
the City, and thus, will be entitled to a collection fee of $154,400. The current Purchase
Order for $83,400 needs to be increased by $71,000 to cover the remaining estimated
collection fees. The payments to Wittman are recorded as an offset to revenues, so no
additional appropriation is required.
Change Order for Ambulance Billing Services
April 15, 2025
Page 3 of 3
RECOMMENDATION
It is recommended the City Council determine this action does not constitute a project
under the California Environmental Quality Act (“CEQA”); and approve a change order to
increase the Purchase Order with Wittman Enterprises, LLC for Ambulance Billing and
Collection Services in the amount of $71,000.