HomeMy WebLinkAbout25B - AGMT - BILLING SRVSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 16, 2017
TITLE:
FIRST AMENDED AGREEMENT FOR
PARAMEDIC /MEDICAL BILLING AND
COLLECTION SERVICES WITH WITTMAN
ENTERPRISES, LLC
(STRATEGIC PLAN NO. 7,5F)
diTY-MANAG-ER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 18' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute a two -year amended agreement
with Wittman Enterprises, LLC, ( "Wittman ") effective July 1, 2017 through June 30, 2019, to
extend the current three -year agreement expiring June 30, 2017, including an option at the
election of the City to transfer administration, promotion, billing, and collection of the City's
Paramedic Subscription Program, subject to non - substantive changes approved by the City
Manager and City Attorney.
DISCUSSION
The Treasury & Customer Service Division of the Finance and Management Services Agency
( "Treasury Division ") is responsible for administering the City's paramedic /medical billing and
collection services agreement. This task is accomplished through the use of a third party
agent/provider. The primary tasks of the paramedic /medical billing and collection services
agent/provider are to seek reimbursement of emergency medical services and transport that the
City provides, comply with Medicare, Medi -Cal and private insurance requirements and work with
patients to arrange alternate methods of repayment. In April 2014, the City released a Request
for Proposals (RFP) for paramedic /medical billing and collection services. Wittman was the sole
qualifying responding agent/provider and was awarded a three -year contract from July 1, 2014
through June 30, 2017. Wittman's fees are contingent upon successful billing and collection
of paramedic /medical services provided through the City's contracts with the Orange County
Fire Authority (OCFA) and CARE Ambulance. Wittman's current fee rate is 6.3 %, under the
terms of the recommended two -year extension Wittman's fee rate will as follows:
(Year 1) — 6.15% of net collections obtained by Wittman
(Year 2) — 6.30% of net collections obtained by Wittman
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First Amended Agreement for Paramedic /Medical
Billing and Collection Services
May 16, 2017
Page 2
In addition to administering the City's paramedic /medical billing and collection services
agreement, the Treasury Division is responsible for managing the City's Paramedic Subscription
Program. Effective July 1, 2017, over 7,300 City households are projected to be participating in
the program at an annual membership fee of $55.65 generating over $400,000 annually. As an
optional add -on, the Amended Agreement proposes that Wittman promote, administer, and
collect the City's Paramedic Subscription Program. Optional services to be performed by
Wittman and related costs are as follows:
An initial mass mailing to promote participation in the City's Paramedic Subscription
Program. The initial mass mailing list will total approximately 20,000 accounts.
• An annual renewal mailer to all registered Paramedic Subscription Program members.
• Generate and send a Paramedic Subscription Program membership mailer to all non -
subscription paramedic /medical service recipients on an ongoing basis.
• Collect all Paramedic Subscription Program applications and membership fees.
o The proposed cost for Wittman's Paramedic Subscription Program service will
be applied to fees collected as follows:
■ Initial and subsequent renewal mailings - $1.10 per account, plus prepaid
return envelope postage charge ($0.49) per mailer.
■ Administration of the City's subscription program:
• (Year 1)- 12% of subscription membership fees collected.
• (Year 2) - 11% of subscription membership fees collected.
In order to implement the optional Paramedic Subscription Program through Wittman, the
Centers for Medicare & Medicaid Services (CMS) require that a client jurisdiction maintain a
certain paramedic subscription fee threshold to meet Medicare Part B cost - sharing guidelines.
This would require the City to increase its proposed 2017 -18 fiscal year subscription fee from
$55.65 to $66.59 ($65.00 CMS threshold fee, plus $1.59 postage and handling charge). As
such, the proposed optional fee has been incorporated into the 2017 -18 Miscellaneous Fee
Resolution.
Participation in the optional City Paramedic Subscription proposal is elective on the part of the
City and can be exercised by the City Manager or his designee for the first agreement year, one
hundred - twenty (120) days prior to January 1, 2018, and thereafter one hundred -twenty (120)
days prior to July 1st for any subsequent agreement year. Based on the potential to more
efficiently promote and administer the City's Paramedic Subscription Program and thereby
expand participation by Santa Ana residents, staff recommends inclusion of this option.
25B -2
First Amended Agreement for Paramedic /Medical
Billing and Collection Services
May 16, 2017
Page 3
Extending the current agreement which expires June 30, 2017 for two additional years will allow
the City ample time to decide if the Paramedic Subscription Program should be managed by third
party vendor prior to issuing a Request For Proposals in connection with future
paramedic /medical billing and collection services commencing July 1, 2019.
STRATEGIC PLAN ALIGNMENT
Approval of this item assists the City in meeting Goal #7 - Team Santa Ana, Objective #5 (create
a culture of innovation and efficiency within the organization, Strategy F (explore opportunities to
engage with outside agencies, both private and public, to share information and increase
efficiencies).
FISCAL IMPACT
As payment for services is contingent upon successful collection, Wittman will share in the
total revenue recovered from their billing /collection efforts and paid from the Fire Services
Contract Services Professional account no. (01115330- 62300).
APPROVED AS TO FUNDS AND ACCOUNT:
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Francisco Gutierrez,
Executive Director
Finance and Management Services Agency
Exhibit: 1. Agreement
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25B -4
FIRST AMENDMENT TO AGREEMENT
THIS FIRST AMENDMENT TO AGREEMENT, made and entered into this 10h day
of May, 2017 by and between Wittman Enterprises, LLC, a California Limited Liability
Company (hereinafter "Consultant "), and the City of Santa Ana, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California
(hereinafter "City ").
RECITALS:
A. The parties entered into an ambulance and paramedic billing and collection
services agreement for the City's Emergency Medical Services (EMS) and Emergency
Medical Transport Services (EMTS) Programs (Agreement #A- 2014 -145) dated June 17,
2014 (hereinafter "said Agreement ") by which Consultant has provided ambulance and
paramedic billing and collection services to the City.
B. The Term of said Agreement was three (3) years effective as of July 1, 2014 and
ending June 30, 2017.
C. In accordance with the terms and conditions of said Agreement, the parties wish
to amend the Term to provide for an additional two (2) year period beginning July 1,
2017 and ending June 30, 2019.
D. The parties also wish to amend Compensation for the extended Term.
E. The parties also wish to amend the Scope of Services with respect to City's option
to elect that Consultant, provide paramedic membership subscription services to City to
include: outreach, solicitation, collection, and administration services as set forth in
Exhibit B to this Amendment and incorporated herein by reference.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terns and conditions hereinafter set forth, the parties agree as follows:
1. Section 1 of said Agreement, "SCOPE OF SERVICES" shall be amended to include the
services set forth in Exhibit A to said Agreement as well as the updated optional services set
forth in Exhibit B, attached to this Amendment and incorporated herein.
2. Section 2 of said Agreement, "TERM" shall be amended as follows:
This First Amendment to Agreement shall commence on July, 1 2017 and terminate on
June 30, 2019, unless extended by subsequent amendment of this Agreement or terminated
earlier in accordance with Section 12 of said Agreement.
3. Section 3 of said Agreement, "COMPENSATION" shall be amended as follows
25B -5
a. City agrees to pay, and Consultant agrees to accept as total payment for its services
percentage fee of net collections obtained by Consultant per contract year as follows:
First Amended Agreement Year l - equal to 6.15 % of net collections obtained
by Consultant.
ii. First Amended Agreement Year 2 - equal to 6.3 % of net collections obtained
by Consultant.
4. This First Amendment to said Agreement must be signed below and may be signed in
counterpart and delivered by fax, emailed as a PDF (Portable Document Format) file attachment,
or by other means that displays the original or a copy of the signatures. Any subsequent
amendments may be signed and delivered in the same manner.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment the date and
year first above written.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORNI:
SONIA R. CARVALHO
City Attorney
LISA STORCK
Assistant City Attorney
RECOMMENDED FOR APPROVAL
Francisco Gutierrez, Executive Director
Finance & Management Services Agency
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CITY OF SANTA ANA:
CYNTHIA J. KURTZ
Interim City Manager
WITTMAN ENTERPRISES, LLC
CORRINE WITTMAN -WONG
Chief - Executive Officer
Tax ID # 68- 0456021
EXHIBIT B
SCOPE OF SERVICES
OPTIONAL CITY PARAMEDIC SUBSCRIPTION MEMBERSHIP PROGRAM
Adoption, promotion, and administration of City's Annual Paramedic Subscription Membership
Program:
1. As a condition to participation in Optional City Paramedic Subscription Membership
Program and to ensure that City is compliant with Medicare guidelines on subscription
membership fees, City shall impose a minimum paramedic services subscription fee of
not less than $65.
2. City shall inform Consultant in writing of City's decision to participate in Optional City
Subscription Membership Program.
Upon receipt of City's written decision to participate in Optional City Paramedic
Subscription Membership Program, Consultant shall assist City in generating and
formatting an initial mass mailer to solicit participation by residents of the City of Santa
Ana in the paramedic services subscription membership program. Consultant shall assist
City in generating and formatting a renewal paramedic services subscription membership
program mailer and will format that mailer for mass mailing. Basic mailer and renewal
mailer shall include a multi - color, double -sided City Paramedic Subscription
Membership Program solicitation letter /application and prepaid return envelope. Use of
additional colors, inserts or enclosures may be added at the direction of the City.
Consultant's cost shall reflect increased service costs, materials, and postage. Consultant
shall prepare a statement of additional costs per mailing piece for approval by the City
prior to incurring additional costs.
4. Consultant shall generate the City's initial mass mailing list from paramedic billing
accounts listed in Consultant's database for fiscal years 2012 -13 through 2016 -17.
Mailing list shall be comprised of all residential paramedic billing accounts in
Consultant's billing system. Consultant warrants that initial mass mailing list shall total
20,000 accounts, plus or minus 10 %. Consultant shall annually send a renewal mailer to
all registered City Paramedic Subscription Membership Program members based on all
registered City of Santa Ana subscribers in Consultant's database.
5. Consultant shall thereafter, on an on -going basis, generate and send an initial paramedic
services subscription membership program mailer to all non - subscription paramedic
service recipients upon payment or write -off of service recipient's paramedic services
billing.
6. Consultant will receive and process each subscription application by adding the member
to Consultant's system (profit center) and posting the payment. This database will be
used to identify any subscription member that may be transported upon the input to
25B -7
Consultant's billing system. The City will receive separate monthly reports for the
subscription program.
7. Cost — The cost for Consultant's subscription membership program service is as follows:
a. Initial and subsequent renewal mailings - $1.10 per account, plus a first class
United States mail prepaid return envelope charge equal to the United States
Postal Service's published postal rate for a standard one ounce first class letter,
effective as at the time of mailing (to be applied as an offset to Consultant's
Paramedic Subscription Program billing collection remittances to CITY).
b. Administration of the City's subscription program:
i. (Year 1) - 12% of subscription membership fees collected.
ii. (Year 2) - 11% of subscription membership fees collected.
8. Change Order Contingency — from time -to -time, at CITY's option, CITY may request
optional services of CONSULTANT at mutually agreed upon scope and fees (to be
applied as an offset to Consultant's Paramedic Subscription Program billing collection
remittances to CITY).
Participation in the optional City Paramedic Subscription Membership Program proposal shall be
elective on the part of the City, exercisable by the City Manager or his designee, and can be
exercised for the first amended agreement year upon 120 days written notice given prior to
January 1, 2018, and thereafter upon 120 days written notice given prior to July I" for any
subsequent amended agreement year.
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