HomeMy WebLinkAbout1999-06-08; City Council; 15245; Ambulance Billing ServicesI! a
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CITY OF CARLSBAD -AGENDA BILL ’ s-
AB# /+#” T’TLE: EXTENSION AND AMENDMENT TO AGREEMENT DEPT HD. b’-
MTG. 06/5./99 TO PROVIDE
DEPT. m AMBULANCE BILLING SERVICES CITY MGR.w
RECOMMENDED ACTION:
Adopt Resolution No. 9+35 approving Extension and Amendment No. 1 to the
Agreement between Wittman Enterprises and ‘the City of Carlsbad to provide ambulance billing
services.
ITEM EXPLANATION:
Firefighter/paramedics in the Fire department provide necessary emergency ambulance services to
City of Carlsbad residents, visitors and businesses. In fiscal year 1997-1998, Fire department
paramedics transported approximately 2,250 patients and billed $875,041 in net ambulance revenues
(gross revenues less Medicare, medical and other contractual write downs). Through April 30 of this
fiscal year, the department has served almost 1,764 citizens and billed $852,280 in net ambulance
revenue.
In January 1996, a request for proposal for ambulance billing services was sent to seven vendors, with
four proposals received by the City. The City chose to out source ambulance billing and collections to
allow the City to quickly collect payment at a relatively low cost, improve customer service, and
improve management reporting. The proposals were evaluated by a joint Fire/Finance selection team
and Wittman Enterprises was the unanimous choice of the team. Wittman was awarded the contract
based on an evaluation of their qualifications and experience, adequacy of billing services,
management reporting and cost.
In May 1996, the City Council approved a three-year contract, with a provision for two additional one
year extensions, with Wittman Enterprises to provide ambulance billing services. The contracted rate
with Wittman was 5.7% of net collections, with a provision for the rate to be renegotiated in the third
year of the contract.
While Wittman Enterprises had the option to renegotiate their contracted rate in the third year of the
contract, they chose to maintain the rate at 5.7% during that year. In April 1999, the City began
negotiations with Wittman for the first year of the two additional one year extensions allowed in the
contract. The negotiations included proposals for an increase in Wittman’s rate.
In May 1999, Wittman Enterprises proposed to the City an extension of their contract for an additional
three years, with a provision for two additional one year extensions, at a contracted rate of 6.1% of net
collections fixed for the initial three-year extension. The proposed rate is an increase of 7% over their
current rate.
In evaluating Wittman’s proposal, a review of their services to the City was made by staff. In fiscal
year 1994-95, before Wittman assumed ambulance billing for the City, the City was only able to
achieve a 58% collection rate. .Through December 1998, Wittman has been able to increase the
collection rate to 79%. Other services provided by Wittman include electronic billing to Medicare,
Medical and insurance companies; provision of a nationwide toll-free telephone number for
customers; multi-lingual billing representatives; computer access to Wittman’s data bank to allow City
staff to answer patient queries; and expertise in government regulations and laws associated with
paramedic services and ambulance transport. The expectations of the City, based on the unanimous
award of the contract to Wittman by the selection team in 1996, has been realized.
Staff recommends acceptance of Wittman’s proposal. Wittman Enterprises has provided competent
Page 2 of Agenda Bill # Id: ar/g ,
and effective ambulance billing services for the City over the past three years. Their request for a 7%
increase in their rate of compensation fixed for the next three years is an equitable exchange given
their quality of service over the past three year contract and the fixed rate of 5.7% during that period.
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
Annual receipts for ambulance services are estimated in the General fund 1999-2000 Operating
Budget at $859,000, with a corresponding cost for ambulance billing services of $50,000. The fiscal
year 1999-00 budget assumes Wittman’s contract for services to be 5.7%. The proposed rate of 6.1%
for Wittman services would increase their cost of services by $3,430, which will be absorbed in the
fiscal year 1999-00 budget. For the remainder of fiscal year 1998-l 999, the cost of billing services
would increase by $300, which will be absorbed in the current year’s budget.
EXHIBITS:
1. Resolution No. 9~-~~~, approving Extension and Amendment No. 1.
2. Extension and Amendment No. 1 to Agreement between Wittman Enterprises and the City of
Carlsbad.
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RESOLUTION NO. 99-205
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, APPROVING
EXTENSION AND AMENDMENT TO AGREEMENT
TO PROVIDE AMBULANCE BILLING SERVICES
WHEREAS, firefighter/paramedics in the Fire department provide
necessary emergency ambulance services to City of Carlsbad residents, visitors
and businesses; and
WHEREAS, in 1996 the City chose to out source ambulance billing and
collections to allow the City to quickly collect payment at a relatively low cost,
improve customer service, and improve management reporting; and
WHEREAS, in May 1996, the City Council approved a three-year contract,
with a provision for two additional one year extensions, with Wittman Enterprises to
provide ambulance billing services; and
WHEREAS, the contracted rate with Wittman was 5.7% of net collections,
with a provision for the rate to be renegotiated in the third year of the contract; and
WHEREAS, Wittman Enterprises chose to maintain the rate at 5.7% during
that year; and
WHEREAS, in April 1999, the City began negotiations with Wittman for the
first year of the two additional one year extensions allowed in the contract including
proposals for an increase in Wittman’s rate; and
WHEREAS, in May 1999, Wittman Enterprises proposed to the City an
extension of their contract for an additional three years, with a provision for two
additional one year extensions, at a contracted rate of 6.1% of net collections fixed
for the initial three-year contract; and
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WHEREAS, other services provided by Wittman include electronic billing to
Medicare, Medical and insurance companies; provision of a nationwide toll-free
telephone number for customers; multi-lingual billing representatives; computer
access to Wittman’s data bank to allow City staff to answer patient queries; and
expertise in government regulations and laws associated with paramedic services
and ambulance transport; and
WHEREAS, Wittman Enterprises has provided competent and effective
ambulance billing services for the City over the past three years; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Extension and Amendment No. 1 to the Agreement between
Wittman Enterprises and the City of Carlsbad to provide ambulance billing services
is hereby approved and the Mayor is hereby authorized and directed to execute
said agreement.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council on the 8 th day of June , 1999, by the following vote, to wit:
AYES:Council Members Lewis, Finnila, Nygaard, Hall & Kulchin
NOES: None
ABSENT: None
Al-TEST:
(SEAL)
KAREN R. KUNDTZ, Assistant City Clerk
EXTENSION AND AMENDMENT NO.1 TO AGREEMENT
BETWEEN WITTMAN ENTERPRISES AND THE CITY OF CARLSBAD
This Amendment is entered into and effective as of the 8 th day
of June I 1999, amending the agreement dated May 20, 1996, by and
between the City of Cartsbad, a municipal corporation, hereinafter referred to as “City”,
and Wittman Enterprises, a sole proprietorship, hereinafter referred to as, “Contractor”
for ambulance billing services.
RECITALS
WHEREAS, the City and Contractor desire to extend the term of the
agreement dated May 20, 1996, for a period of three years ending on May 19, 2002;
and
WHEREAS, the initial agreement, dated May 20, .1996, identified a.scope ’ ,A’.
,of work whereby the City requires the services of a billing ,and ,collection contractorto: ,I ’ :,‘:”
provide the necessary consulting services -for @reparation of invoicesfor, smergency, : r ,. e. . ‘ . t ;. ambulance transport, to be sent to private insurdncecompanies, government agencies, ‘.:;:. ‘. / ‘: Y
and t&ients; delinquent claim handling; receipts processing;’ and. monthly reports; :and ! %
Contractor possesses the necessary skills -and qualifications to provide the servic& -.
required by the City; and
NOW, THEREFORE, in consideration of these recitals and the mutual
covenants contained herein, City and Contractor hereby. agree as follows:
1. The term of the agreement shall end on May 19, 2002. The contract
may be extended by the City Manager for two (2) additional one (I) year periods, or
parts thereof, based upon a review of satisfactory performance and the City’s needs.
The parties shall prepare extensions in writing indicating effective date and length of the
extended contract.
2. City shall pay Contractor a total fee for the services to be performed
not-to-exceed 6.1% of collected revenue, less refunds or adjustments. Contractor
guarantees fee will not increase for three (3) years.
3. All other provisions of the aforementioned agreement entered into on
May 20, 1996, by and between City and Contractor shall remain in full force and effect
through May 19,2002.
9/l l/96
4. All requisite insurance policies to be maintained by the Contractor
shall include coverage for the amended assignment and scope of work for the
extension period.
Acknowledged and Accepted:
CONTRACTOR:
WI~MAN ENTERPRISES
DONA WITTMAN
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Al-TEST: 3.
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ALETHA L. RAUTENKRAfiZ
City Clerk
KAREN R. KUNDTZ, Assistant City Clerk
(Proper notarial acknowledgment of execution by Contractor must be attached.
Chairman, president or vice-president and secretary, assistant secretary, CFO or
assistant treasurer must sign for corporations. Otherwise, the corporation must attach a
resolution certified by the secretary or assistant secretary under corporate seal
empowering the officer(s) signing to bind the corporation.)
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
9/l l/96
CALlFORNlA ALL-PURPOSE ACKNOWLEDGMENT
personally appeared
ersonally known to me
proved to me on the basis of satisfactory
to be the person& whose nameh is/&q
subscribed to the within instrument and
acknowledged to me that he&hem executed
..:
Place Notary Seal Abow
OPTIONAL
Though the infomation below is not n?quirad by law, it may prove valuable to persons retytng on the document
and coutd prevent tkaud&nt removal and raattachment of ihis fom~ to another document.
Description of Attached Document
Tile or Type of Document:
Document Date: Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer’s Name:
q Individual
•i Corporate Officer - Title(s):
Cl Partner - 0 Limited Cl General
0 Attorney in Fact
0 Trustee
Cl Guardian or Conservator
Cl Other.
Signer Is Representing:
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0 1997 National Notary Asmciation l 9259 De Sot0 Ave.. P.O. Box 2402 l Chdsvvwrih, CA 9131924G2 Prod. No. 5907 Reorder: Cdl TdCFree 1-809-676-6827
City of Carlsbad
June 18,1999
Wittman Enterprises
Dona Wittman
PO Box 269110 Sacramento, CA 95826-91 IO
1 J%TENSJ@U 4% AMEN~MEhJT TO AGkEEMEJ’iT 1: i ” ,.,
,. FOR AI\IIBUJdWCE BJCLING SERVICES : : .: -I ,. _.
Enclosed for your reference are copies of Carlsbad City Council Agenda Bill No.
15,245 and Resolution No. 99-205. These documents went before the City’
Council on June 8, 1999, where the Resolution was adopted, approving the
agreement referenced above.
Also enclosed is a copy of the fully executed’agreement.
If you have questions concerning the agreement or the program, please contact
Marie Berkuti, in the Finance Department at (760) 434-2867.
yyy7<~;Q.z.cfc=
Kathleen D. Shoup
Sr. Office Specialist
1200 Carlsbad Village Drive l Carlsbad, CA 92008-l 989 - (760) 434-2808 @