Agenda 11/12/2013 Item #16E 311/12/2013 16.E.3.
EXECUTIVE SUMMARY
Recommendation to adopt a resolution authorizing the removal of 9,577 ambulance service
accounts and their respective accounts receivable balances totaling $5,769,953.33, which were
recorded as Bad Debt Expense during Fiscal Year 2010, from the general ledger of Collier County
Fund 490 (Emergency Medical Services).
OBJECTIVE: To remove $5,769,953.33 in ambulance service fee receivables from the general
ledger for Fund 490 (Emergency Medical Services) representing total uncollected ambulance
service fees for 9,577 accounts from Fiscal Year 2010.
CONSIDERATIONS: Collier County began providing emergency ambulance transportation
services in 1981. Unlike the majority of governmental services provided by the County, where
fees are normally received before services are provided, emergency ambulance services are
provided and fees are received after the fact. This "service before fee" scenario is due to the
County's responsibility to protect the public health, safety and welfare.
The chart below identifies ambulance service fee activity for Fiscal Year 2010.
contractual &
Gross Charges other Amount Collection Write -of€ write- Total
Wed Adjustments Net Billed Collected Net % Amount off % Accounts
110�
FV10 22,895,403.00 6,S92,732.9916,302,6MM 10,532,716.58 65'% 5,769,953.33 35% 9,577
There are two types of. adjustments that can be made to an ambulance service account:
Contractual and/or bad debt.
Contractual adjustments represent Collier County's acceptance of the Federal Medicare limits on
amounts that can be collected for medical services, Medicaid statutory limits, Railroad
Retirement statutory limits, Victim Compensation Rights statutory adjustments, etc. Receivables
are recorded at 100 %. When payment is received, contractual adjustments are recorded as a
reduction to revenue.
Bad debt adjustments represent accounts deemed uncollectible for a variety of reasons, including
patients who cannot be located, services provided to transients or migrants, patients who die with
no assets, bankruptcies, etc.
Bad debt expense is recorded annually by the Finance Department. Consequently, there is no
direct fiscal or budgetary impact as a result of this write -off; however these accounts cannot be
removed without Board adoption of an authorizing resolution. Detailed reports listing the
accounts to be removed are on file in the Office of Emergency Medical Services.
Those accounts for which the billing agency has exhausted their collection attempts were sent to
the County's contracted collection agency. If any payments are received, they will be processed
n through the Board's accounting system.
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FISCAL IWACT: There is no direct fiscal or budgetary impact. The accounts and amounts to
be removed from the General Ledger have been recognized as bad debt in prior years.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney.
County Resolution No. 08 -27, Section 2. H and I, provides as follows:
H. Throughout the fiscal year, the EMS Billing Section shall review all past due accounts and
report to the Board of County Commissioners on an annual basis, of all past due accounts which
are believed to be uncollectible.
I. The Board may, after reviewing these past due accounts and after finding that diligent efforts
at collection have been unsuccessful, remove these past due accounts from active accounts
receivable in accordance with generally accepted accounting procedures and pursuant to law by
Resolution.
By approving this item, the Board is finding that diligent efforts at collection have been
unsuccessful. This item is sufficient as to form and legality and requires a majority vote for
Board approval. - JAK
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: Adopt a resolution authorizing the removal of 9,577 individual
accounts with a total receivable balance of $5,769,953.33 from the Emergency Medical Services
Fund (Fund 490) general ledger. The Allowance for Doubtful Accounts in the general ledger
will be reduced by a like amount.
PREPARED BY: Artie R. Bay, Supervisor, EMS Admin., Emergency Medical Services
Attachments: FY 10 Write Off Resolution, Billing Resolution 8 -27
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.3.
Item Summary: Recommendation to adopt a resolution authorizing the removal of 9,577
ambulance service accounts and their respective accounts receivable balances totaling
$5,769,953.33, which were recorded as Bad Debt Expense during Fiscal Year 2010, from the
general ledger of Collier County Fund 490 (Emergency Medical Services).
Meeting Date: 11/12/2013
Prepared By
Name: BayArtie
Title: Supervisor - Accounting,EMS Operations
10/15/2013 8:44:47 AM
Approved By
Name: pochopinpat
Title: Administrative Assistant,Facilities Management
Date: 10/15/2013 9:23:53 AM
Name: KopkaWalter
Date: 10/15/2013 10:26:07 AM
Name: SummersDan
Title: Director - Bureau of Emergency Services,
Date: 10/17/2013 8:17:09 AM
Name: PriceLen
Title: Administrator, Administrative Services
Date: 10/21/2013 4:46:32 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 10/23/2013 2:22:44 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 10/23/2013 2:37:23 PM
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11/12/2013 16.E.3.
Name: PryorCheryl
Title: Management/ Budget Analyst, Senior,Office of Manag
Date: 10/28/2013 2:15:34 PM
Name: IsacksonMark
Title: Director -Corp Financial and Mgmt Svs,CMO
Date: 10/30/2013 9:35:54 AM
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11/12/2013 16.E.3.
� RESOLUTION NO. 2013 -
RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, TO AUTHORIZE THE REMOVAL
FROM THE BOOKS AND RECORDS OF COLLIER COUNTY CERTAIN
ACCOUNTS AND THEIR RESPECTIVE BALANCES WHICH HAVE
BEEN PREVIOUSLY RECOGNIZED AND RECORDED AS BAD DEBT
EXPENSES.
WHEREAS, Collier County provides emergency ambulance transportation services
throughout Collier County; and
WHEREAS, emergency ambulance transportation service fees are received by the
County after the services have been rendered due to the County's responsibility to protect the
public health, safety and welfare; and
WHEREAS, the County is unable to collect some debts, and others the Board is
statutorily prohibited from collecting or due to contractual arrangements cannot be collected; and
WHEREAS, the County's procedure for receivable management includes the periodic
recognition (normally on an annual basis) of bad debt expense in the books and records for
n accounts that have been identified as un- collectible; and
WHEREAS, the County's accepted and practiced accounting method to recognize bad
debt is a periodic or annual bad debt recognition, consisting of billed accounts over 90 days old;
and
WHEREAS, Rule 69I -71, Florida Administrative Code, allows the Board to adjust
accounts receivable for less than the full amount if the accounts have not been reported to the
Department of Financial Services, Division of Accounting and Auditing for disposition; and
WHEREAS, the subject accounts have not been reported to the Department of Financial
Services, Division of Accounting and Auditing; and
WHEREAS, County Resolution No. 08 -27, Section 2. H and 1, provides for removing
these accounts from the Board's Emergency Medical Services Fund General Ledger; and
WHEREAS, the Board of County Commissioners hereby finds that diligent efforts at
collection have proven unsuccessful and circumstances warrant the adjustment.
NOW THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
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1. The following chart sets forth the charges billed, the portion uncollectible due to
statutory prohibitions and Board contractual arrangements, the amount collected and the balance
of accounts receivable to be written off:
Contractual a
Gross Charges Other Amount Collection Write -Off Write- Total
Billed Adjustments Net Billed Collected Net % Amount Off % Accounts
FY10 22,8+35,403.00 6,5+92,732.99 16,302,670.01 10,532,716.58 65% 5,759,953.33 35% 9,577
2. The Board authorizes staff to remove $5,769,953.33 from the Board's Emergency
Medical Services Fund General Ledger control account for Accounts Receivable, and a like
amount will be removed from the Allowance for Doubtful Accounts General Ledger control
account.
THIS RESOLUTION ADOPTED on this 12th day of November, 2013, after motion,
second and majority vote favoring adoption.
ATTEST:
DWIGHT E. BROCK, Clerk
, Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
GEORGIA A. HILLER, ESQ.
CHAIRWOMAN
2
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RESOLUTION NO. 08 - 27
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, PROVIDING FOR UP-DATED EMS USER
FEES FOR COLLIER COUNTY AMBULANCE SERVICES, UP -DATED
BILLING AND COLLECTION PROCEDURE, HOSPITAL TRANSPORT
BILLING AND FEES, ADJUSTMENTS OF EMS USER FEES PURSUANT
TO COLLIER COUNTY ORDINANCE NO. W36, WAIVER OF EMS USER
FEES FOR SPECIAL EVENTS, AND AN UPDATED PROCEDURE FOR
APPROVING HARDSHIP CASES AND PAYMENT PLANS; SUPERSEDING
RESOLUTION NO. 07-192; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Collier County Emergency Medical Services (hereinafter referred to as
" EMS ") provides ambulance services to the residents and visitors of Collier County; and
WHEREAS, the Collier County EMS operating budget is funded exclusively through ad
valorem taxes and user fees; and
WHEREAS, the Board of County Commissioners recently entered into an Agreement with
Advanced Data Processing, Inc. (hereinafter referred to as to "Billing Consultant') to provide
collection services for ambulance services and associated fees; and
WHEREAS, this Resolution is intended to apply irrespective of wbether EMS billing staff,
Advanced Data Processing, Inc., or any other billing consultant is responsible for the collection of
fees for ambulance services; and
WHEREAS, Collier County Ordinance No. % -36 § 5 provides that the user fees for
ambulance services may be established by Resolution of the Board of County Commissioners
n (hereinafter referred to as to "the Board").
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
SECTION ONE: EMS USER FEES
BASE RA I
SERVICE LEVELS CODES
BASE CHARGES
A. EMS — BLS NON- EMERGENCY A0428 $ 700.00
B. EMS — BLS EMERGENCY A0429 $ 700,00
C. EMS — ALS I NON - EMERGENCY A0426 $ 700.00
D. EMS — ALS I EMERGENCY A0427 $ 700.00
E. EMS — ALS 2 EMERGENCY A0433 $ 750.00
F. EMS — SPECIALTY CARE A0434 S 800.00
G. EMS — TREATMENT W/O TRANSPORT A0098 $ 175.00
H. EMS — HELLICOPTER A0431 S 5,900.00
MILEAGE RATES:
SERVICE LEVELS CODES MILEAGE C ARQE
A. EMS —GROUND UNIT A0425 S 12.25
(Minimum Charge of I mile and no cap)
B. EMS — AIR UNIT A0436 $ 110.00
SPECIAL EVENTS AND MISCELLANEOUS RA S
n SERVICE LEVELS
RATES
A TWO (2) MEDICS/ONE ALS VEHICLE (PER HOUR) $ 150.00
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B. ONE (1) MfiDIC/NO VEHICLE (PER HOUR) S 50.00
PIES * -
Subject to statutory exemptions, "public records- are requited by Chapter 119, F.S to be
open to inspection and copying. Consistent with Chapter 119, Resolution No. 07 -327 establishes
copying fees as follows:
COPIES OF DOCUMENTS RATES
A. One -sided copy which is 14 inches by 8 %: inches or less $ .15
B. Two -sided copy which is 14 inches by 8'/: inches or less $ .20
COPY SERVICES
The actual cost of duplication for all other copies will be charged. The first hour of cost of
duplication will not be charged. "Actual cost of duplication" is defined in § 119,07(1), FS as "the
cost of the material and supplies used to duplicate the record," but does not include the labor cost
and overhead cost associated with such duplication.
*Copying fees are subject to change only to the extent that either Chapter 119, F.S. or
Resolution No. 07 -327, or both, are amended, replaced, or superseded.
PAST DUE ACCOUNTS
INTEREST ON PAST DUE ACCOUNTS S I% monthly
SECTION TWO: BILLING COLLECTION PROCEDURE
The following shall be the minimum guidelines for billing and collection procedures for
ambulance service fees and charges:
A. Initial fees and charges for ambulance service(s) shall be assessed either prior to or
following the provision of service, as service dynamics reasonably allow. Unpaid fees and
charges, subsequent to time of service shall be reflected in an accounts receivable subsidiary
ledger system to be maintained by the EMS Department.
B. EMS Billing Staff will transmit all data necessary to Billing Consultant to process the claim.
I . Billing Consultant will send an initial bill to the service recipient's or responsible
party's insutmce carrier as soon as insurance information has been received,
validated, and entered by the Billing Consultant on the account.
2. When a valid patient address is present, the Billing Consultant will follow the patient
statement cycle outlined below.
i. An initial statement for ambulance services, including the HIPAA notice of
privacy practices shall be sent fourteen (14) or more days after the data is
entered by the Billing Consultant, but no later than 30 days after service has
been provided.
ii. If a non - Medicaid account remains unpaid, statements will be sent to the
patient no later than every 60 days from the last filed date. If a claim is denied,
a bill will be sent to the service recipient or responsible party.
iii. For Medicaid accounts, if the claim is denied because of no coverage at the
time of service, or because it was determined to be not medically necessary to
be transported by ambulance, a bill will be sent to the service recipient or
responsibly ley. n
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iv. In the event the service recipient or responsible party does not have or does not
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Provide proof of insurance coverage, statements will be sent to the patient no
later than every 60 days from the last statement date.
C. The Billing Consultant will provide a file with patients to be sent to collections to the
County's contracted collection agency when all attempts to collect on the account have been
exhausted by the Billing Consultant. The County nay direct the Billing Consultant to not
send a patient to collections at any time. Billing Consultant may send a patient to
collections prior to exhaustion of all collection efforts when:
1. The patient account has an invalid address.
2. Billing Consultant is directed by County to send a patient to collections.
D. Interest will be assessed at 1% per month on all accounts that are sent to the County's
contracted collection agency.
E. A reasonable and customary payment plan will be made available for all service recipients
or responsible parties. Should the service recipient or responsible party at the time fail to
meet the terms and conditions of the payment plan for a period of (60) sixty days, the unpaid
balance shall reenter the collections process set forth in Section C. above at the point in the
collections process at which it was taken out for a payment plan to be administered.
F. When ambulance service bill(s), at the any stage in this billing and collection procedure, are
returned because the Postal Service cannot effectuate delivery, the EMS Billing Section
shall make reasonable effort to ascertain the correct mailing address. If reasonable efforts to
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ascertain a correct address fail, the account(s) may be considered for other collection
alternatives.
G. Nothing contained in this Section shall preclude reasonable telephone or other appropriate
contact for billing and collection purposes, in accordance with all applicable laws.
H. Throughout the fiscal year, the EMS Billing Section shall review all past due accounts and
report to the Board of County Coatmissionem on an annual basis, of all past due accounts
which are believed to be uncollectible.
I. The Board may, after reviewing these past due accounts and after finding that diligent
efforts at collection have proven unsuccessful, remove these past due accounts from active
accounts receivable in accordance with generally accepted accounting procedures and
pursuant to law by Resolution.
J. Probate Estate Cases• Should a decedent have an unpaid balance for ambulance services,
the following shall occur:
I. The decedent's Personal Representative will notify EMS Billing Staff that a
probate estate has been filed with the Probate Court.
2. EMS Billing Staff stall ensure that a Notice of a Claim is timely filed with the
Probate Court.
3. EMS Billing Staff shall ensure that the Office of the County Attorney is timely
notified of such claim and provided with: 1) a copy of ambulance bill(s), 2) all
correspondence between EMS Billing StaMilling Consultant) and Personal
Representative, 3) Notice of Claim filed with the Probate Estate, and any other
information necessary to pursue the claim.
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4. The Office of the County Attorney shall take all reasonable actions that are
necessary to pursue such claim, including but not limited, to filing a lawsuit in
the County Court to pursue such claim.
5. If the estate has assets and $10,000 or less is owed for ambulance services, the
EMS Director and the County Attorney (or his designee) are authorized to take
reasonable actions to reach a settlement with the Personal Representative or his
attorney. Should a settlement be reached, the EMS Director and the County
Attorney (or his designee) are authorized to execute a satisfaction and/or release
on behalf of the County. If the estate has assets and in excess of $10,000 is owed
for ambulance services, any negotiated settlement/compromise of the ambulance
billing claim shall be approved by the Board of County Commissioners. If the
estate has nominal assets or no assets, the County Manager may waive the rates,
fees, and charges as set forth in Ordinance No. 96-36, as it may be amended,
replaced, or superseded.
K. All accounts with a balance of $10 or less will be written off.
SECTION THREE: HOSPITAL TRANSPORT BILLING AND FEES
A. The fees set forth in Section One of this Resolution shall apply to ambulance transports that
occur between a hospital's facilities.
B. Should a hospital within the boundaries of Collier County have the need for a transport of a
patient between hospital facilities located within the boundaries of Collier County,
ambulance transport will be provided. n
C. Should a hospital within the boundaries of Collier County have the need for a transport of a
patient to hospital facilities located outside the boundaries of Collier County, the County,
will subject to equipment and manpower availability, at its sole discretion, utilize its
resources to provide patient transport.
D. Hospitals requesting ambulance transports shall be invoiced directly for ambulance transport
service on a monthly basis.
SECTION FOUR: ADJUSTMENT OF EMS USER FEES
The following shall be minimum guidelines for adjustments to ambulance service fees. The
Board of County Commissioners, in accordance with criteria established by the enabling Ordinance,
may authorize other adjustments.
A. Medicare and Medicaid Adiustments . Contractual adjustments under Medicare and/or
Medicaid assignment will be made in accordance with applicable Medicare and/or
Medicaid rules and regulations.
B. Victim's Compensation Contractual Adjustments Contractual adjustments will be
made in accordance with applicable state, federal and local rules and regulations.
C. Worker's Compensation Contractual Adjustments. Contractual adjustments will be
made in accordance with applicable state, federal and local rules and regulations.
D. County Employn Adjustments. Board of County Commissioners and Constitutional
Officers' employees that have Primary coverage under Collier County's insurance policy
will be responsible for any deductibles, co- payments or unpaid balances. An employee
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may dispute his/her ambulance charge in accordance with procedures set forth in
Ordinance No. 96 -36.
E. Ch- 1611ricam Adl Contractual adjustments will be made in accordance
with applicable Champus/Tricare rules and regulations.
F• Rai LroAd t AMM Adiustmen Contractual adjustments will be We in accordance
with applicable state, federal and local rules and regulations pertaining to Railroad
Retirement Adjustments.
G• S Ad' . Contractual adjusww= will be made in accordance with
rules established by the County Manager and memorialized by a memorandum of
understanding executed by the Social Services Director and the EMS Director.
SECT FIVE; • WAIVER OF EMS USER FEE FOR SPECIAL EVENTS.
Pursuant to Ordinance No. 96 -36, and from the effective date of this Resolution, user fees
for EMS ambulance stand -by services may be waived if the Board fords that a valid public purpose
has been established in recognition of their charitable contributions to the Community.
SECTION SIX: HARDSHIP CASES AND PAYMENT PLANS.
The Board recognizes that certain service recipients may need to be identified and processed
as hardship cases. Payment plans will be established pursuant to the minimum guidelines set
forth in this Resolution.
A. hardship cases will be established in accordance with the Federal Poverty guidelines, as
used by the Social Services Department of Collier County.
B. Payment plans for hardship cases will be set up on a monthly basis, with a minimum
Payment of $10.00 per month. Hardship cases, placed on a payment plan will not accrue
interest or be placed into collection. Notwithstanding the foregoing, if a service
recipient has a payment plan and does not make the agreed scheduled payments for a
period longer than two (2) months, the account will be turned over to the County's
contracted collection agency and interest will begin to accrue.
SECTION SEVEN! SUPERCISION OF RESOLUTION 07 -192
This Resolution shall supersede Resolution No, 07 -192
SECTION EIGHT: EFFECTIVE DATE
This Resolution shall become effective on January 29, 2008
PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier
County, Florida, this +! day of
2008.
ATTEST-, BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK..CLERK COLLIER COUNTY, FLORIDA
By. u
TO 1 iN , C1iA 1/2v/l8
Y v�tb to foriti.
legal sufficiency:
Jenni A. Belpedi
Assistant County Attorney
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