Agenda 11/08/2022 Item #16E 5 (Resolution - Removing 7,807 service accounts and their respective uncillectivle accounty from the receivable accounts)11/08/2022
EXECUTIVE SUMMARY
Recommendation to adopt a resolution authorizing the removal of 7,807 ambulance service accounts and
their respective uncollectible accounts receivable balances which total $4,876,008.70, 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 $4,876,008.70 in ambulance service fee receivables from the accounts receivable for
Fund 490 (Emergency Medical Services) for uncollected ambulance service fees for 7,807 accounts from Fiscal
Year 2018 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 2018.
Gross Charges Contractual & Net Billed Amount Net Write Off Write Total
Billed Other Collected Collection Amount Off Accounts
Adjustments % %
$25,523,980.76 1 $8,006,299.58 1 $17,517,681.18 1 $12,641,672.48 1 72% $4,876,008.70 1 28% 7,807
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 $4,876,008.70 from the EMS Accounts Receivable will remove 7,807 individual
customers' accounts and reduce the allowance for doubtful accounts in Fund 490.
LEGAL CONSIDERATIONS:
County Resolution No. 2021-175, Section 2. H and 1, provides as follows:
H. Throughout the fiscal year, the EMS Billing Section shall review all past due accounts and report to the Board of
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11/08/2022
County Commissioners on an annual basis, of all past due accounts which are believed to be uncollectible.
1. 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.
RIECOMMENDATION: To adopt a resolution authorizing the removal of 7,807 individual accounts with a total
receivable balance of $4,876,008.70 from the Emergency Medical Services Fund (Fund 490) accounts receivable.
PREPARED BY: Cherie DuBock, Supervisor Accounting, Emergency Medical Services
ATTACHMENT(S)
1. Resolution - EMS Bad Debt Write Off FYI 8 - JAK signed (PDF)
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11/08/2022
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.5
Doe ID: 23741
Item Summary: Recommendation to adopt a resolution authorizing the removal of 7,807 ambulance service
accounts and their respective uncollectible accounts receivable balances which total $4,876,008.70, 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: 11/08/2022
Prepared by:
Title: — Emergency Medical Services
Name: Cherie DuBock
10/25/2022 2:21 PM
Submitted by:
Title: Division Director - EMS Operations — Emergency Medical Services
Name: Tabatha Butcher
10/25/2022 2:21 PM
Approved By:
Review:
Emergency Medical Services
County Attorney's Office
Office of Management and Budget
Office of Management and Budget
County Manager's Office
Board of County Commissioners
Tabatha Butcher Director Review
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Debra Windsor Level 3 OMB Gatekeeper Review
Christopher Johnson Additional Reviewer
Amy Patterson Level 4 County Manager Review
Geoffrey Willig Meeting Pending
Completed 10/26/2022 11:12 AM
Completed 10/26/2022 11:39 AM
Completed 10/26/2022 1:41 PM
Completed 11/02/2022 11:42 AM
Completed 11/02/2022 12:17 PM
11 /08/2022 9: 00 AM
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RESOLUTION NO. 2022 -
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 IDENTIFIED AS
UNCOLLECTIBLE.
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 generally accepted and practiced accounting method to recognize an
allowance for bad debts is a periodic or annual bad debt expense in the books and records for accounts
that have been identified by the Department as uncollectible; and
WHEREAS, Rule 691-71, 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. 2021-175, Section 2. H and I, provides for removing these
accounts from the Board's Emergency Medical Services Fund Accounts Receivable; 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:
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-
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(22-EMS-01 123/1747441/11
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Contractual &
Gross Charges other
Amount Net
Write -Off Write-off Total
Bill ed Adjustments
Net Billed Collected Collection %
Amount % Accounts
25,523,980.76 8,006,299.58
17,517,681.18 12,641,672.48
4,876,008.70 28% 7807
2. The Board authorizes staff to remove 7,807 individual accounts and their respective balances for El
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a total of $4,876,008.70 from the Board's Emergency Medical Services Fund. Same amount will be 4)
removed from the Accounts Receivable General Ledger control account, and the Allowance for Doubtful
Accounts General Ledger control account in the Board's Emergency Medical Services Fund. U.1
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This Resolution adopted on this _ day of October, 2022 after motion, second and majority
vote favoring adoption.
ATTEST:
CRYSTAL K. KINZEL, CLERK
, Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
William L. McDaniel, Jr., Chairman
[22-EMS-01 123/1747441/11
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