Title
Recommendation to Authorize the Acting City Manager to Execute a One-Year Agreement in an Amount Not to Exceed $200,000 with the Option of Four One-Year Extensions for a Total Five-Year Expenditure Not to Exceed $1,000,000 between the City of Alameda and Wittman Enterprises, LLC for Ambulance and False Alarm Billing. (Fire 3232)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Recommendation to Authorize the Acting City Manager to Execute a One-Year Agreement in an Amount Not to Exceed $200,000 with the Option of Four One-Year Extensions for a Total Five-Year Expenditure Not to Exceed $1,000,000 between the City of Alameda and Wittman Enterprises, LLC for Ambulance and False Alarm Billing
BACKGROUND
The Fire Department currently responds to over 5,100 emergency medical calls per year, many of which result in a patient being transported to a medical facility. These medical calls result in the generation of electronic Patient Care Reports (ePCR) that require review, coding, and analysis prior to sending out a claim to an insurance company or a bill to the patient. These services are provided by an ambulance billing company.
The Fire Department continually works to enhance the quality of its Emergency Medical Services (EMS) while pursuing strategies to improve cost-efficiency.
DISCUSSION
The Fire Department has used Intermedix for ambulance billing services since 2011. The contract allowed for five one-year renewals and now is on a month to month basis.
The Fire Department proposes contracting with Wittman Enterprises, LLC by piggybacking on the City of Sacramento Fire Department’s (SFD) competitive bidding process for ambulance billing services under RFP No. P17121441011. SFD evaluated the proposals submitted based on experience and qualifications, methodology and approach of work, pricing, and references. As a result of this evaluation, Wittman Enterprises, LLC was awarded SFD’s ambulance billing contract.
The Alameda Municipal Code, Subsection 2-61-7, Joint Purchases with Public Agencies, provides authority for the City of Alameda to use another government agency’s competitive bidding process to purchase materials, supplies, equipment, vehicles, and apparatus, “provided the purchase is the result of competitive bidding or proposal and is made in compliance with the competitive bid or proposal requirements of any participating agency or organization in a manner that is consistent with law.”
By executing an agreement with Wittman Enterprises for ambulance billing services, the City will:
• Reduce the percentage for ambulance billing processing from 5% to 3.99%% of net collections, an estimated savings of approximately $25,000 yearly (based on current billing costs);
• Add Fire False Alarm billing for 8% of net collections;
• Improve billing accuracy, timing, and cost recovery; and
• Enhance quality control and outcomes.
If approved, the agreement with Wittman Enterprises would commence on August 1, 2018, and terminate on July 31, 2019. The Agreement may be mutually extended on a year-by-year basis, for up to four (4) additional years.
FINANCIAL IMPACT
The funds for this contract are budgeted for in the Fire Department’s Ambulance Transport program. While the Department is budgeting for $200,000 in order to be conservative and account for increased cost recovery efforts, as well as potential fee increases, the City will only be billed as a percent of monies collected. The billing service fee under this Agreement is not to exceed 3.99% of all monies collected for EMS services provided by City less refunds and 8.0% of all monies collected for Fire False Alarm services provided by the City less refunds. In Fiscal Year (FY) 2016-17, the City paid $123,281 for ambulance billing and anticipates paying an estimated $130,000 for FY 2017-18. However, for FY 2017-18, this expense is offset by an estimated $2.4 million in ambulance billing revenue. Staff estimates that the City will save approximately $25,000 over the amount currently paid for ambulance billing collection. This savings may increase in subsequent years as patient transports and subsequent fees increase.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Alameda Municipal Code, Subsection 2-61-7, Joint Purchases with Public Agencies
ENVIRONMENTAL REVIEW
This action is exempt under the California Environmental Quality Act (CEQA) under Section 15378 because it consists of government fiscal activities which do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Recommendation to authorize the Acting City Manager to execute a one-year agreement in an amount not to exceed $200,000 with the option of four one-year extensions for a total five-year expenditure not to exceed $1,000,000 between the City of Alameda and Wittman Enterprises, LLC for ambulance and false alarm billing.
Respectfully submitted,
Edmond Rodriguez, Fire Chief
By,
Darci Vogel, Fire Admin Supervisor
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Service Provider Agreement
2. City of Sacramento Request for Proposals (RFP)
3. Wittman Enterprises RFP