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Comparison of In-House vs. Outsourcing of EMS Billing and Collections Costs on an <br /> Annual Basis <br /> In-House Outsourcing <br /> Personnel Costs (including indirect/ $103,398 $ 68,340 <br /> administrative overhead) <br /> Operational Costs $21,172 $ 5,400 <br /> Contract Costs (1) $ 0 $121,500 <br /> Total Costs $124,570 $195,240 <br /> Additional Revenue Collections ($0) ($150,000) <br /> Anticipated (2) <br /> Total Net County Costs $124,570 $ 45,240 <br /> (1) The annual contract cost of $121,500 represents 6.75% of net collections currently <br /> budgeted at $1,800,000 for FY 2009-10. <br /> (2) The additional annual revenue collections anticipated of $150,000 represents <br /> additional delinquent collections staff estimates it will collect due to freeing up current <br /> staff to work on those collections which would otherwise remain unpaid. <br /> Staff recommends the Board approve a one year trial contract with EMS Management & <br /> Consultants, Inc., beginning January 1, 2010, for the initial billing and insurance filing. During <br /> the year, Revenue Department staff with closely monitor the success of collections as well as <br /> any impacts on customer service. <br /> FINANCIAL IMPACT: The annual contract cost with EMS Management and Consultants, Inc. <br /> of $121,500 is based on a charge rate of 6.75% of net collections, currently budgeted at <br /> $1,800,000 for Fiscal Year 2009-10. By outsourcing this billing and collections operation, staff <br /> estimates that the annual net County costs for this operation will decrease from $124,570 to <br /> $45,240. Due to current staff being redirected to work on delinquent collections instead of <br /> billings and collections, the total net savings to the County that the department will realize from <br /> outsourcing is estimated at approximately $30,000 annually. This is based on the contract <br /> cost of $121,500 and the anticipated additional revenue of $150,000 from delinquent <br /> collections. <br /> RECOMMENDATION(S): The Manager recommends that the Board: <br /> • Approve the one-year contract with EMS Management & Consultant, Inc. and authorize <br /> the Chair to sign after final review and approval by staff and the County Attorney; and <br /> • Amend the Fiscal Year 2009-10 budget to receive an anticipated additional $75,000 <br /> from delinquent collections for the six-month period of January-June 2010. <br /> Commissioner Hemminger asked when this would come back to the Board on the <br /> success of this and Jo Roberson said that it would be part of the budget process. <br /> A motion was made by Commissioner Hemminger, seconded by Commissioner Nelson <br /> to: <br /> • Approve the one-year contract with EMS Management & Consultant, Inc. and authorize <br /> the Chair to sign after final review and approval by staff and the County Attorney; and <br />