Loading...
Agenda 07/13/2021 Item #16E 4 (Removal of Ambulance Service Accounts)07/13/2021 EXECUTIVE SUMMARY Recommendation to adopt a resolution authorizing the removal of 8,023 ambulance service accounts and their respective uncollectible accounts receivable balances which total $5,374,560.99, from the accounts receivable of Collier County Fund 490 (Emergency Medical Services) finding diligent efforts to collect have been exhausted and proved unsuccessful. OBJECTIVE: To remove $5,374,560.99 in ambulance service fee receivables from the accounts receivable for Fund 490 (Emergency Medical Services) for uncollected ambulance service fees for 8,023 accounts from Fiscal Year 2017 where diligent efforts to collect have been exhausted and proved unsuccessful. CONSIDERATIONS: Collier County began providing emergency ambulance transportation services in 1981. As the County is responsible for protecting the public health, safety and welfare of the public, emergency ambulance services are provided when needed and fees are received after the fact. This scenario results in certain accounts being uncollectible. The values below identify ambulance service fee activity for Fiscal Year 2017. Gross Charges Billed Contractual & Other Adjustments Net Billed Amount Collected Net Collection % Write Off Amount Write Off % Total Accounts $25,792,710.72 $8,090,509.28 $17,702,201.44 $12,327,640.45 70% $5,374,560.99 30% 8,023 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, and Victim Compensation Rights statutory adjustments. Receivables are recorded at 100%. When payment is received, contractual adjustments are recorded as a reduction to revenue. The annual review of past due accounts was completed, and accounts deemed uncollectible were identified by EMS. Collection efforts for these accounts have been exhausted. Bad debt is recognized for a variety of reasons, including patients who cannot be located, services provided to transients or migrants, patients who die with no assets and bankruptcies. These accounts cannot be removed without the Board’s adoption of an authorizing resolution. Detailed reports listing the accounts to be removed are on file in the Office of Emergency Medical Services. The Finance Department, in accordance with generally accepted accounting procedures, annually estimates and sets an allowance for bad debts based on accounts receivable analysis. Those accounts for which the billing agency has exhausted their collection attempts were sent to the County’s contracted collection agency and remain outstanding. If any payments are received, they will be processed through the Board’s accounting system. FISCAL IMPACT: Removal of $5,374,560.99 from the EMS Accounts Receivable will remove 8,023 individual customers’ accounts and reduce the allowance for doubtful accounts in Fund 490. LEGAL CONSIDERATIONS: 16.E.4 Packet Pg. 2013 07/13/2021 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: There is no Growth Management impact associated with this action. RECOMMENDATION: To adopt a resolution authorizing the removal of 8,023 individual accounts with a total receivable balance of $5,374,560.99 from the Emergency Medical Services Fund (Fund 490) accounts receivable. PREPARED BY: Erin Cook, Supervisor Accounting, Emergency Medical Services ATTACHMENT(S) 1. Resolution 2021 EMS Bad Debt Writeoff - JAK signed (PDF) 16.E.4 Packet Pg. 2014 07/13/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.4 Doc ID: 16280 Item Summary: Recommendation to adopt a resolution authorizing the removal of 8,023 ambulance service accounts and their respective uncollectible accounts receivable balances which total $5,374,560.99, from the accounts receivable of Collier County Fund 490 (Emergency Medical Services) finding diligent efforts to collect have been exhausted and proved unsuccessful. Meeting Date: 07/13/2021 Prepared by: Title: Accounting Technician – Emergency Medical Services Name: Erin Page 06/15/2021 11:44 AM Submitted by: Title: Division Director - EMS Operations – Emergency Medical Services Name: Tabatha Butcher 06/15/2021 11:44 AM Approved By: Review: Emergency Medical Services Tabatha Butcher Director Review Completed 06/16/2021 10:52 AM Agenda Clerk Preview Michael Cox Agenda Clerk Preview Completed 06/16/2021 5:12 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 06/17/2021 8:06 AM Office of Management and Budget Laura Wells Additional Reviewer Completed 06/22/2021 2:23 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/23/2021 2:43 PM County Manager's Office Sean Callahan Level 4 County Manager Review Completed 06/30/2021 8:42 AM Board of County Commissioners Geoffrey Willig Meeting Pending 07/13/2021 9:00 AM 16.E.4 Packet Pg. 2015 16.E.4.a Packet Pg. 2016 Attachment: Resolution 2021 EMS Bad Debt Writeoff - JAK signed (16280 : Resolution to remove 8,023 ambulance service accounts from FY17) 16.E.4.a Packet Pg. 2017 Attachment: Resolution 2021 EMS Bad Debt Writeoff - JAK signed (16280 : Resolution to remove 8,023 ambulance service accounts from FY17)