Loading...
Agenda 09/10/2024 Item #16F2 (Resolution authorizing the removal of 7,715 ambulance service accounts and their representative uncollectible accounts receivable balances with tottal $5,057,848.03)16. F.2 09/ 10/2024 EXECUTIVE SUMMARY Recommendation to adopt a resolution authorizing the removal of 7,715 ambulance service accounts and their respective uncollectible accounts receivable balances which total $5,057,848.03, from the accounts receivable of Collier County Fund 4050000000 (Emergency Medical Services) finding diligent efforts to collect have been exhausted and proved unsuccessful. OBJECTIVE: To remove $5,057,848.03 in ambulance service fee receivables from the accounts receivable for Fund 4050000000 (Emergency Medical Services) for uncollected ambulance service fees for 7,715 accounts from Fiscal Year 2020 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 2020. Gross Charges Contractual & Net Billed Amount Collected Net Write Off Write Total Billed Other Collection % Amount Off % Accounts Adjustments $25,493,635.41 I ($7,733,086.09) I $17,760,549.32 I $12,702,701.29 172% I S5,057,848.03 128% 17,715 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. 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. The annual review of past -due accounts was completed, and the accounts deemed uncollectible were identified by EMS. Collection efforts for these accounts have been exhausted. The contracted EMS billing company reports that the national averages are 43.5% gross collections and 63.4% net collections. Per the analytical report attached, Collier County EMS falls respectively higher than the national average in both aspects. Historically, Collier County EMS has sustained a higher collection rate in comparison to the national average. Digitech has an average net collection rate of 7 1 % per last three write-off fiscal years (FY18, FY19, FY20). The contracted billing company has done its due diligence by collecting on these accounts and filing accordingly with any insurance. Any balances are then balance billed. If the billing statement is ignored after 3 billing cycle attempts, then the account is turned over to contracted collection agency. 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. It is important to note that accounts that are written off can Packet Pg. 1506 16. F.2 09/ 10/2024 still be worked on and any payments received on these accounts will be processed through the Board's accounting system. FISCAL IMPACT: Removal of $5,057,848.03 from the EMS Accounts Receivable will remove 7,715 individual customers' accounts and reduce the allowance for doubtful accounts in Fund 4050000000. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. County Resolution No. 2022-152, 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. With that noted, this item is approved 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 7,715 individual accounts with a total receivable balance of $5,057,848.03 from the Emergency Medical Services Fund (Fund 4050000000) accounts receivable. PREPARED BY: Cindy Long, EMS Accountant REVIEWED BY: Cherie DuBock, Supervisor Accounting, Emergency Medical Services ATTACHMENT(S) 1. Collier County Analytical Scorecard Overall Summary by Financial Group - Dates of Service FY20—as of 07292024 (XLSX) 2. Resolution 2024 Bad Debt WriteOffs FY 20 (DOCX) 3. Collier County Analytical Scorecard Overall Summary by Financial Group - Dates of Service FY18_as of 07292024 (XLSX) 4. Collier County Analytical Scorecard Overall Summary by Financial Group - Dates of Service FY19_as of 07292024 (XLSX) 5. FY20 -Financial Overview (PDF) 6. FY20 - WriteOff Summary (PDF) Packet Pg. 1507 16. F.2 09/10/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.2 Doe ID: 29202 Item Summary: Recommendation to adopt a resolution authorizing the removal of 7,715 ambulance service accounts and their respective uncollectible accounts receivable balances which total $5,057,848.03, from the accounts receivable of Collier County Fund 4050000000 (Emergency Medical Services) finding diligent efforts to collect have been exhausted and proved unsuccessful. Meeting Date: 09/10/2024 Prepared by: Title: — Emergency Medical Services Name: Cherie DuBock 06/14/2024 3:24 PM Submitted by: Title: — Emergency Medical Services Name: Bruce Gastineau 06/14/2024 3:24 PM Approved By: Review: Emergency Medical Services Emergency Management Corporate Business Operations Office of Management and Budget Office of Management and Budget County Attorney's Office County Manager's Office Board of County Commissioners Bruce Gastineau EMS Chief Review Michael Choate Executive Director Review Jennifer Reynolds OMB Reviewer Debra Windsor Level 3 OMB Gatekeeper Review Agnieszka Chudy OMB Reviewer Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Amy Patterson Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 06/14/2024 4:20 PM Completed 06/18/2024 2:11 PM Completed 06/18/2024 2:20 PM Completed 06/18/2024 2:26 PM Completed 06/18/2024 3:16 PM Completed 06/20/2024 4:46 PM Completed 09/04/2024 10:23 AM 09/10/2024 9:00 AM Packet Pg. 1508 N , N cc U cv cc L L co E E ''�^ Vi cc AL' W O cu AV W L '0 Vi Ef aoinieS jo sele(3 - dnojE) leioueui=l Aq AjewwnS Ileaanp paeoajooS leoilAieud Ajunoo aaipo3 :}uauayoe}}d W I, r n O M ++ L N CO M I e al L C Ln N O 00 I- Ln O r 00 (D y 0M0 O 10 N M N� aim o 0 0 0 0 o Z o 0 o m U Q !0 O tl N O N O o U M O p� O L U M y O N o a � O � O a 0 LL a c co 'o m N w 0 0 0 fA ID Q 0 0 0 0 0 OMO N L!i 000 � 0 0 0 0 0 �2 (O W M W M V rl Iq oc M LMn N m Lo M ITN CO M ONO I:,. M N (O O M (0 (0 (O 00 M (C N O N N_ 00 M N M N (o M M O 10 M (O N M (0 O O O �D LO r N O Ln W M V 00 O r O 00 (O I__ Ln (O (.0 (O M I- O M� 10 "t M (0 (O O 00 O O M (O Il M M I- N cD 00 CO M V M N � Ln Cfl m M (0 m M (.0 (.0 Ln Lfi V M I- W to m M (o M O cl M O O M N (.fl r- 'T M N � (O O 0W0 O (MO N CT ON 02 - w o LU c U U W w 0 LLI Q ? 2 O LL M O O O NCD N O Cl) y O O LL Z LL E m m a 01 CO $ 102 O O m LL am+ am+ C cl) :) M 0 LO d Y U a. a N aoinaaS }o sa;ea - dnoaE) leioueuid Aq AjewwnS Ileianp paeoaaooS leoijAleud Ajunoo a9ipo3 :;uewLjoejjV r �r U 0rC. d Y V a U N O a U � ul > � 00 �p m C .-I Q � A � N N O N L. O cr O. N O T C ? N O O O C O O O n O F u) Z 0 Q Q Q N T 7 � C N a a� I � , co co O N � 1 6.F.2.b RESOLUTION NO.2024- 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 0 WHEREAS, emergency ambulance transportation service fees are received by the County after as the services have been rendered due to the County's responsibility to protect the public health, safety and Cn welfare; and w N 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 N N WHEREAS, the County's generally accepted and practiced accounting method to recognize an a) v allowance for bad debts is a periodic or annual bad debt expense in the books and records for accounts 0 N >- that have been identified by the Department as uncollectible; and WHEREAS, Rule 691-71, Florida Administrative Code, allows the Board to adjust accounts 0 °' L receivable for less than the full amount if the accounts have not been reported to the Department of W Financial Services, Division of Accounting and Auditing for disposition; and as WHEREAS, the subject accounts have not been reported to the Department of Financial cc Services, Division of Accounting and Auditing; and N N WHEREAS, County Resolution No. 2022-152, Section 2. H and I, provides for removing these c 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. c E NOW THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY z a 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: Packet Pg. 1511 1 6.F.2.b Contractual & Gross Charges other Amount Net Write -Off Write -Off Total Bill ed Adjustments Net Billed Collected Collection % Amount % Accounts 25,493,635.41 7,733,086.09 17,760,549.32 12,702,701.29 72% 5,057,848.03 28% 7,715 2. The Board authorizes staff to remove 7,715 individual accounts and their respective balances for a total of $5,057,848.03 from the Board's Emergency Medical Services Fund. Same amount will be removed from the Accounts Receivable General Ledger control account, and the Allowance for Doubtful p as Accounts General Ledger control account in the Board's Emergency Medical Services Fund. Cn M This Resolution adopted on this 13th day of August 2024 after motion, second and majority w N vote favoring adoption. N O N ATTEST: BOARD OF COUNTY COMMISSIONERS v CRYSTAL K. KINZEL, CLERK COLLIER COUNTY, FLORIDA N u_ By: O Deputy Clerk Chris Hall, Chairman L Approved as to form and legality: Jeffrey A. Klatzkow, County Attorney Packet Pg. 1512 U N LL r Cl) N cc U �v ^c L W` L m E E ''�^ Vi cc AL' W O cu V ''O Vi aoinaag }o sa;ea - dnolE) leioueuid Aq Ajewwng U c o o v I-- N co N Z O) G � y r O Ln CD N r N 0 U cD co� O N m o 0 0 0 0 O Z O O O M U 3e a o 0 0 0 0 O Q M N Lo M U a 0 0 0 0 0 M O co (O M N � 00 V U? O N M Ln I:d M (O M W r 00 N 00 LO M (C O ( � v cm - � ai M O M M O O V) n co N co (O ON O (R NU? O O O M r O O r W � M O N W N (q W N M "t m 00 (O _ M Ln 00 CO M O O V) n co 0 co (O (O N W UC N I- O _ n M (O _ 00 M O O � O o NI- I- in a) � ui M M N W O V (O M W (O 00 00 V N O V r M M (O ON I" ItN m N M (o M 'T co N � (O w o LU x U U W w CO LU L Q ? 2 2 O d Ileaanp paeoejoog leoijAleud Ajunoo aailloo :;uewLjoejjV I : 00 O O O Cl) y O O O LL Z M r Ln d Y U a 2 a N aoinaaS }o sa;ea - dnoaE) leioueuid Aq AjewwnS Ileiano paeoa.=S leoijAleud Ajunoo a9ipo3 :;uewLjoe;;d F:,� U 0rC. d Y V a U N O a U � %� Ol � N C .-I Q `~ n N N O L. N O O1 O. N O T C ? N O O O C O O O n O F u) Z 0 Q Q Q N T 7 � C N a n N O O N I I � Cl) N cc U �v L ^c L W` L m E E ''�^ Vi cc AL' W O cu V ''O Vi aoinaag }o sa;ea - dnolE) leioueuid Aq Ajewwng W M r O CO V v ~ n N CO M Z w y L � V � M O C N 7 V M y OMO O COO N Q aim o o 0 0 0 0 Z (D o o m °' U y o 0 0 0 0 _ qJ N l�f) OMO Vrn a L m ❑ 'O !0 m L U m Z Q N 7 O N O C N O o U CM O W L H U M to O a � O � 0 0 O a LL m H c o a m $ w O 0 0 fq m � a ❑ 0_ o 0 M M CO CO O O O O M 00 CD m O LO CO O Lf) LO (D O) O) CO O M M O O CO CO M CO O O r O N_ N V _ Cr r-M O N M N M '�t M CO O O N M r N O OD r CO O N 00 M O_ 1 O) CM O � � O In CO O CO V M V O) N Cl? M M O r CO M N CO L!) C V CND O a) (C M n (O O) . M N L() O O N CDC" � -It Lfl O 00 N OMO N - M O) O) Ln V O M T O N O n N V N o0 V CO O LO n CO M 11i Lo O O CO M N �2 CO O M ONO OMO (�O V N 00 V w o LU x U U W w CO LL1 W Q ? 2 O d Ileaanp paeoejoog leoijAleud Ajunoo aailloo :;uewLjoejjV LO r Ln d Y U a 2 a NaoinaaS }o sa;ea - dnoaE) leioueuid Aq AjewwnS Ileiano paeoa.=S leoijAleud Ajunoo aaipo3 :;uauayoe;;d N—ro �� U 0rC. d Y V a U N O a U m •+ N am �p m C .-I Q � A � N N O L. N O O1 O. N O T C ? N O O O C O O O n O F U) Z 0 Q Q Q N T 7 � C N CD I CD CO NN CO O ar T w Cto F, N to I� N M r N I I � N O G� (110 GIPM SW3 OZA=l N V O N n 1-I N N N" n LD M LL:N V a --I Ln 00 e-I O 01 a --I N n e-I N n n N O 00 m m O N 00 00 ri l9 n 00 w N m 00 00 m m lD n m T N I N Ol n Lf1 ci M N M N Pn Y c-I ci ci ci a-i ci ei a-i ei a-i ei ci ei ci Ln lD n 00 m O Ln m n Ln O V ei N 01 00 LD M 01 00 00 lO 00 LD -Ca* N wM n M wM n If1 n 00 � 00 C) LD ei m N 00 n m M ci L!1 ci 00 N ci ci ci V 01 Ln C a n 00 n LD m N LD n 00 LD m 00 N i/4 e-I i/4 N -4 V4 i/4 V4 i/4 V4 11 i/4 i/4 i/4 i/4 V} ZOZ6Z) MOIAJan0 lelOUeui3- OZA3 :4U8WLj3e44d c � ^O Or 01 w N u1 � a n w 00 O n 00 00 N N V � R hp lD O m r-I 00 00 00 N R m .-i LD O M M m O 01 OR n 01 -! OR Ln n l0 M M M W ei Dl N Ln M LD O OO LD O N N CO LD CD N� n Ma ID N 00 QO 00 N O 'i O O e-I lD O N Ln a --I n n lD 00 N n O O M V CD N V n CD a- 4 t n n Ln LA C LD n M O O� M 00 N 4 00 n 01 n n LD MN O C e-I f M -t 00 01 00 01 00 00 00 r-I O O i/4 i/4 i/4 i/4 i/4 ei N n V4 V4 i/4 i/4 V4 V4 N 'Ni O V O N N n O LD r-I V M O Ln N M V Ln M M r-I r-I %D LD N n N tO N O 'a 00 O N O O Ln O Ln V O O LV a M O L N Q Ln m V N O O 00 LD N LD Ln O1 M N LD L,D O n V n m m LD m Ln m n O O m '~ N 00 O 01 +� V CU O0 a0+ n LD a --I LD al 00 M LD Lf1 Ol a --I M e-I V O Ln M n M N M Ln Ln i0' O lD N 00 M 4 4 01 C U lD l0 LD 00 n n N Ln N LD Ln Ln 00 N 00 00 0) L i/). i/4 i/4 i/4 i/4 i/4 i/4 i/4 i/4 i/4 i/4 in ^ ^ U V C in O C `^ n f0 °� Y is 0 _ N U O Ol m M O M MCT ei Ln LD 01 Ln Ln CT 00 C N (0 00 LD Ln n LD 01 ci 00 LO n V M LD 00 00 Lq C ? fO V M Q1 N Ln N 01 Ln lD ei lD tD to LL c C ci N Ln N N 00 M 00 00 Ln M rn m 01 n � O n O Pn Q1 Ln LD M p N m W N M lD n V 00' '-I 00' 01 M' -4 N V � L0 N � � O O M C 0 N c l n w n m 00 w V w 00 n M N Ln 00 N C an vi. V/ V/ V/ V/ -L 4 V/ -tn O '8 a -I 00 O f6 i(/4 in in im/4 N 9 N N OU ON m iNj4 i � Ll�I m V LL Ln m w m M Ln N Ln LD Ln Ln Q y N a N S LL M It 01 l0 .-i N O N 01 N 01 V U 00 N LD 00 M O LD r-I N N V .--i n N Y N +-' ci n 00 01 r-IN n -4 Ln O 01 M n 1000 lU .0 Ln i-i ci LD LD Ln M O N n m N LO V N 00 Ln N 01 N V Ol 01 M 01 C))ci VI F O Q Q M 00 O Ol N Ol LD n O r-I Ol Ln N r-I n LD LD n 01 M Ln i? V4 V4 r-I cy^ cy t/4 i/4 t/4 i/4 i/4 i/4 UT i/4 m O V4 V4 ei V@1 LD N ei O N Ol N Ln 00 O n tY LD LD M O1 00 N ci Ln 00 O1 M O O1 M O1 00 N V M m O n n LO M o0 M M M 00 O 01 01 M LD N N Ln Ln Ln V u LO 0; N O Ln LD 't n ei LD ci n Ln (3) .-i 01 V M Ln 00 M tt V N r-I N N 0= T O N LO N ci LD N LD co Ol M 01 i 00 m 01 a -I O^ m N n w LD N n ei � in• ih � ih ih ih ih ih ih iR @ t�/4 N 41 m N M n Ln n -;T 00 N ci Ln 00 O 00 00 LO n 00 In ei m LD LD N M N N N O n ei N M n N n n n m 01 W r-I 00 O M M Ln LD LD 00 Ln M Ql O n N V't N N Ili LD Ln 't n C N M N .-1 O LD n V n 01 O V QO V V n m m r-I N M N r-I M m L ci -t N n Ln M n 01 00 O 00 00 M 0 N N N N N N ei i ci N ci a--i a N L4 ih ih ih ih ih ih ih ih ih ih ih Ln 0) N i L4 N M 0 M M Ln W LD Ln V N ei 0 N Y O1 Ln to M r-I0 00 LD N rq V N O m C V V LD N O n 01 N N V Cj N m G N N N M m N ei N N N N N N V E CJ O -4 eNi -4 N co V Ln LD n 00 m L u Y 2 � = a � C LQi1 01 0) 01 0 0 0 0 0 0 0 0 0-zr ei -4 ei N N N N N N N N N N O O O O O O O O O O O O N N N N N N N N N N N N M M M O M n M O Ln rq 00 00 LO CO V 01 M M V o LM 00 a i M rn r-I N 00 I� v Ln O L!1 N Y .. a0to � L! V U C C h 3 U N 3 O C L0 V f0 � f0 Y m Y m 41 > V Q U m a V a c m u m u �o o 0 o L}i FY 20 Write -Off Summary 16.F.2.f FY 20 Vendor SAP Charges Adjustments Net Billed Payments Collection % Write -Off Write -Off % # of I Digitech & Collection Summary 25,493,635.41 (7,733,086.09) 17,760,549.32 12,702,701.29 72% 28% Digitech Accounts 239,382.33 2% Alliance One Accounts 87,528.80 2,040,899.03 16% RTR Financial Accounts 116,072.13 2,777,566.67 22% 5,057,848.03 28% 5,057,848.03 Totals 25,493,635.41 (7,733,086.09) 17,760,549.32 12,702,701.29 72% E, d r� �L C� C LU O N LL N O N M N R E E 7 0 N r O N LL C 0 E t V Q Packet Pg. 1518 024