PRESENTER: Presenter
Assistant Fire Chief Matt Bushnell
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SUBJECT: Title
Approval of a contract with EMERGICON LLC to provide Emergency Medical Services (EMS) Medical Billing Cost Recovery Services for the City of New Braunfels Fire Department.
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DEPARTMENT: Fire Department
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
The City’s Fire Department EMS Program uses a contractor agreement to provide complete management from the collection of billable patient treatment services provided by City’s EMS Staff through account closure, to include but not be limited to, billing services, accounts receivable services, operational and financial data reporting and analytical services.
The City’s percentage rate of all monies collected by our incumbent contractor for EMS billing provided by the City as of June 2023, less refunds, “net collections” is 7.7% which is down 1.2% compared to June 2022. In July 2022, EMS rates were adjusted to a “flat rate” fee to streamline billing process and increase collection rates. Current collection rates are considerably lower than projected revenues expected by adoption of the new billing methodology. In addition, collection time is approximately 115-120 days and items uncollectible has increased 7.2% in the last 13 months.
Currently the Fire Department uses CHANGE Health Care for EMS billing. This contract expires November 30, 2023. The Fire Department identified multiple possible replacements for this firm. After evaluating their capabilities, references, and customer service, The Fire Department has determined that Emergicon LLC provides the best value for the City. In addition, the Fire Department has identified a potential for increased recovery percentage from insurance companies and opportunities for improved customer service.
Emergicon recently entered into a contract with College Station, and CoNB will be utilizing our existing Interlocal Agreement with College Station to piggy-back that agreement to satisfy procurement.
The contract term will be from December 1, 2023 through November 30, 20--26. Additionally, there are two (2) one-year options to renew for a combined total of sixty (60) months.
ISSUE:
Recovery rates with current vendor do not meet expectations.
FISCAL IMPACT:
Ambulance billing nets approximately $2.3 million annually to the City to help offset the cost of providing emergency response services. Emergicon as stated, receives 11 ½% of the collected amount. Therefore, their compensation is contingent upon collection on billings. As a result, EMS collection rates and billing revenue will increase with EMERGICON.
Recommendation
RECOMMENDATION:
Staff recommends approval of a contract with EMERGICON LLC to provide Emergency Medical Services (EMS) Medical Billing Cost Recovery Services for the City of New Braunfels Fire Department.