Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH EMS MANAGEMENT AND CONSULTANTS, INC. FOR THE PROVISION OF BILLING, COLLECTION AND RELATED SERVICES, AND DECLARING AN EMERGENCY.
Executive Summary: This resolution allows the City of Hudson to contract with a new third party vendor that specializes in Ambulance Billing to manage its patient billing accounts. The practice of using a third party vendor has been in place since Ambulance User Fees were first established in July of 2004.
Body
Legislative History
a. Ordinance 04-97 established a user fee for emergency medical services (ambulance transport billing) and provided for collection of user fees. City Ordinance 242.02 - User Fee for Emergency Medical Services
b. Life-Force Management of Streetsboro, Ohio was authorized, under contract, to provide billings services for emergency medical service at a rate of 7.5% on all collections received.
c. Ordinance 10-43 amended 242.02 User Fee for Emergency Medical Services in terms of rates, scheduled increases and the definition of a resident.
d. Resolution No. 10-44 authorized the City Manager to enter into an agreement with ADPI-Intermedix for the provision of Billing, Collection and Related Services and Equipment at a rate of 6.5% on all collections received.
Purpose & Explanation
From the onset of Hudson's adoption of Ambulance User Fees it was determined that the cost of performing this function in house was cost prohibitive based on the expertise needed in both personnel, equipment and software.
With the current contract with ADPI-Intermedix, the City has seen a decrease in revenue of 14% despite an increase in both base rates (60%) and subsequent increases in the Medicare rates (4.4%). Customer Service toward patients and staff requests suffered. Despite pledges to correct the issues, the problems have continued and efforts to find a replacement started in the spring of this year. On September 27, 2012, the City gave notice that it was terminating the agreement.
Staff is recommending EMS Management and Consulting, Inc. (EMS|MC) of Winston-Salem, NC to replace ADPI-Intermedix. EMS|MC was vetted from the previously submitted proposals and recommendations from our current vendors that would integrate with our billing agent. EMS|MC offers more services at a rate of 4.75% of net collections.
This contact would run for two years (January 1, 2013 through December 31, 2015) and then would automatically renew each year, unless terminated by either party.
Exhibit A
Business Agreement between EMS Management & Consultants, Inc. and the City of Hudson.
Exhibit B
Business Associate Agreement between EMS Management & Consultants, Inc. and the City of Hudson.
Timing Considerations
Staff is requesting that an emergency clause be added to the legislation due to the time restraints associated with the setup required for processing Insurance claims beginning January 1, 2013.
Fiscal Impact
_X_ Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council authorize the City Manager to enter into an agreement with EMS|MC for Ambulance Transport Billing and ARMS. Staff is also requesting that an emergency clause be added to the legislation due to the time restraints associated with the setup required for processing Insurance claims.
Submitted by,
Bruce Graham, EMS Director