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HomeMy WebLinkAbout1999-06-08; City Council; 15245; Ambulance Billing ServicesI! a $ . . p 2 d ii s 0 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. 2 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 1 2 3 4 5 6 7 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 l.. “ , .i .: ‘, 1 ~rpo~~(jfj,f&&‘&fe af~c&&Jri;ia .;I ‘1 ._ 1 : b_ :‘. ;.,:‘;;, :: ,;. 1.. : .’ { i ‘~‘~‘~‘~,;sa,~’ ;, ‘:. ., .~ I ‘: ’ ,! 1,;. Y’ . .‘ . . . . i‘ ;‘,A’ /:j ;: ,. I“ ::- ‘a .-: ._ _, .i ,,* ‘,,..re’,; ,_. ,, ;- . .-., .’ : 3 “. 1 . . . . . ., ., . r . : ,;. .m ” :“- . . ,/ ,_ I > ‘,. ,__,, -* .,.. .’ Mayor ‘. Al-TEST: 3. c 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: ::, ?‘, * i,; ,‘c’ ,, ; ,.. ..,:I[’ *, ” : ,. b .; ( 1, ‘.“& ::-_,. ,_, :. ,c 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 @