Agenda - 10-20-2009 - 6f - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 20, 2009 Action Agenda Item No. (p _ -~' SUBJECT: Billin Services Agreement- Ambulance Service DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: (1) Invoicing Claims Service Contract with EMS Management & Jo Roberson, 245-2735 Consultants, Inc. (2) Document Reflecting NC Clients PURPOSE: To direct staff to pursue the outsourcing of the initial billing and claims processing for EMS Ambulance Service transports by entering into aone-year Billing Services Agreement with EMS Management and Consultants, Inc. BACKGROUND: Since 1996, the Revenue Department has handled the billing and collection of EMS Ambulance Service transports. Prior to that time, there was no formal or uniform process in place for EMS billing. Since the outset of Revenue handling the billing, there has been one staff member (1.0 FTE) dedicated full-time to the process. Over the years, the department has improved its processes and procedures in order to handle the continuous growth in the number of transports while maintaining just one full-time dedicated staff member. Current files reflect that beginning with record keeping in Fiscal Year 1998-99, there were 5,001 billable transports. These transports totaled $1.4 million in actual levy. As of the close of Fiscal Year 2008-09 there were 6,757 billable transports totaling in excess of $3.1 million in actual levy. This represents a 35% increase in billable transports, and a 121 % increase in actual levy dollars over this ten year period. With the additional Property Information Management System (PIMS) Project now beginning and with the reorganization of the Tax Assessor and Revenue Departments into one department, the time is right to approach claims management and redirect internal staff endeavors to collections. Staff has been very successful in claims processing, handling appeals on behalf of the public, and collecting accounts otherwise not paid. However, over the past two years billable transports have increased from 6,064 in Fiscal Year 2006-07 to 6,757 in Fiscal Year 2008-09, and staff has struggled to maintain the workload. The continued growth of transports, the increased complexity of claims processing, and the steps for appeals has grown into a process that has demanded the continuous attention of no less than the equivalent of one and three- quarter full time employees (1.75 FTEs). The total annual cost to manage this operation in- house is estimated at $124,570, which represents direct personnel costs, administrative overhead costs, and operational costs. (See detailed table below.) This has not taken into consideration any active collection endeavors. That process has been dealt with separately by