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Agenda 08/26/2025 Item #16F14 (Resolution - Removing 7,901 ambulance service accounts and their respective uncollectible accounts receivable balances of $5,233,740.02 from the Emergency Medical Services Fund)8/26/2025 Item # 16.F.14 ID# 2025-2479 Executive Summary Recommendation to adopt a Resolution authorizing the removal of 7,901 ambulance service accounts and their respective uncollectible accounts receivable balances, totaling $5,223,740.02 from the accounts receivable of the Emergency Medical Services Fund (4050) finding diligent efforts to collect have been exhausted and proved unsuccessful. OBJECTIVE: To remove $5,223,740.02 in ambulance service fee receivables from accounts receivable for the EMS Fund (4050) for uncollected ambulance service fees for 7,901 accounts from Fiscal Year 2021 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 2021. Gross Charges Billed Contractual & Other Adjustments Net Billed Amount Collected Net Collection % Write Off Amount Write Off % Total Accounts $27,566,262.74 ($8,379,765.65) $19,186,497.0 9 $13,962,757.07 73% $5,223,740.02 27% 7,901 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 CMS (Centers for Medicare and Medicaid Services) limits on amounts that can be collected for medical services, Medicare statutory limits, Medicaid statutory limits, Military statutory limits, Railroad Retirement statutory limits, Health Maintenance Organizations (HMO) statutory limits, Worker’s Compensation 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 individuals who refuse to pay or cannot pay, 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 (Digitech) reports that the national averages are 44.7% gross collections and 64.3% net collections for CY2024. Per the analytical report attached, Collier County EMS falls higher than the national average in both respects. Historically, Collier County EMS has sustained a higher collection rate in comparison to the national average. Digitech has an average gross collection rate of 49% and a net collection rate of 71% based on Fiscal Years (FY18, FY19, FY20, FY21). The contracted billing company has done its due diligence by billing and collecting on these accounts and filing accordingly with any insurance. Any balances are then billed. If the billing statement is ignored after 3 billing cycle attempts, then the account is turned over to our current 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 still be worked on Page 4242 of 4682 8/26/2025 Item # 16.F.14 ID# 2025-2479 and any payments received on these accounts will be processed through the Board’s accounting system. This item is consistent with the Collier County strategic plan objective to support and enhance our commitment to robust public safety services FISCAL IMPACT: Removal of $5,223,740.02 from the EMS Accounts Receivable will remove 7,901 individual customers’ accounts and reduce the allowance for doubtful accounts in the EMS Fund (4050). GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this action. 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. -CLD on behalf of JAK RECOMMENDATIONS: To adopt a Resolution authorizing the removal of 7,901 individual accounts with a total receivable balance of $5,223,740.02 from the EMS Fund (4050) accounts receivable. PREPARED BY: Cindy Long, Accountant II, Corporate Financial & Management Services ATTACHMENTS: 1. Resolution 2025 Bad Debt Write-Off FY21 2. Analytical Scorecard Yearly Comparison 3. FY21 Write-Off Summary 4. FY21 Financial Overview Page 4243 of 4682 RES()LUTION NO.2025- RESOLUTION OF THE BOARD OF COUNTY CO}INIISSIONERS OF COLLIER COUNTY, FLORIDA, TO AUTHORIZE THE RENTOVAL FROM THE BOOKS AND RECORDS OF COLLIER COUNTY CERTAIN ACCOTINTS AND THEIR RESPECTIVE BALANCE,S WHICH HAVE BENN IDENTIFIED AS UNCOLLECTIBLE. WHEREAS, Collier Countl' pror,ides enrergenc]' ambulance transportation serv'ices throughout Collier County; and WHEREAS, emergency ambulance transportation service f'ees are received by the Cor-rnty after the sen'ices have been rendered due to the Countl's responsibilitl' to protect the public health, sat'etv and welfare; and WHEREAS, the County is unable to collect some debts, and others the Board is statutorily prohibited lrom collecting or due to contractual arrangements cannot be collected; and WHEREAS, the Count,v's generally accepted and practiced accounting method to recognize an allowance fbr bad debts is a periodic or annual bad debt expense in the books and records for accourrts that have been identified by the Department as uncollectible: and WHEREAS, Rule 691-71. Florida Administrative Code. allor.vs the Board to adjust accounts receivable for less than the flll amount if the accounts have not been reported to the Department of Financial Sen,ices, Division ofAccounting and Auditing 1br disposition; and WHEREAS, the subject accounts have not been reported to the Department of Financial Services. Division of Accounting and Auditingt and WHEREAS, County Resolution No. 2022-152. Section 2. H and I, provides for removing these accounts fl'om the Board's Emergencl Medical Services Fund Accounts Receivable; and WHEREAS, the Board of Countl Cornmissioners hereby finds that diligent effbrts at collection have proven unsuccessful and circumstances warrant the adjuslment. NOW THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMNIISSIONERS OF COLLIER COUNTY' FLORIDA' that: 1. I'he following cha( sets fbfih the charges billed. the portion uncollectible due to statutory prohibitions and Board contractual arrangements. the a.mount collected and the balance of accounts receivable to be *'ritten ott Page 4244 of 4682 Gross Charges Billed Contractual & other Adjustments Net Billed Amount Collected Net Collection % Write-Off Amou nt Write-Off Total Accounts 21,s66262.7t 8,379,765.65 19,r86,,t97.09 13,962,157.07 13rh 5,223,110.02 2701,7,901 2. The Board authorizes statlto remor,'e 7.901 individual accounts and their respective balances for a total of $5,223.740.02 from the Board's Emergency Medical Sen'ices Fund. Same amount will be removed from the Accounts Receivable General Ledger control account, and the Allou'ance fbr Doubtful Accounts Ger.reral Ledger control account in the Board's Emergencl' Medical Sen'ices Fund. This Resolution adopted on this 261h day of August 2025 aller motior.r. second and rnaj ority vote lal oring adoption. ATTEST: CRYSTAL K. KINZEL. CLERK , Deputy Clerk Approved as to form and legality: Courtney L. DaSilva Assistant County Attome) BOARD OF COI.INTY COMMISSIONERS COLLIER COUNTY, FLOzuDA By: BurtSaunders- Chairman tD Page 4245 of 4682 Filter Criteria Date of Service From:10/01/2017 Date of Service To:09/30/2021 Source to primary:False Using Fiscal Year:No Transp Gross Chrg Contractual Adj Net Chrg Bad Debt Adj Paid Due Transp Mix Coll% Gross Coll% Net Gross Chrg Transp Net Chrg Transp Paid Transp YEAR 2017 7510 6,250,937.10 1,931,854.28 4,319,082.82 1,237,600.13 3,083,302.92 -1,820.23 6%49%71%832.35 575.11 410.56 YEAR 2018 30186 26,091,558.12 8,278,245.89 17,813,312.23 5,286,102.47 12,547,946.39 -20,736.63 24%48%70%864.36 590.12 415.69 YEAR 2019 30791 26,776,589.72 8,339,164.02 18,437,425.70 5,429,702.93 13,014,110.46 -6,387.69 25%49%71%869.62 598.79 422.66 YEAR 2020 30069 25,586,365.42 7,893,966.34 17,692,399.08 5,011,448.59 12,734,438.37 -53,487.88 24%50%72%850.92 588.39 423.51 YEAR 2021 24811 21,036,184.27 6,491,185.01 14,544,999.26 3,979,060.79 10,388,047.09 177,891.38 20%49%71%847.86 586.23 418.69 Grand Total 123367 105,741,634.63 32,934,415.54 72,807,219.09 20,943,914.91 51,767,845.23 95,458.95 100%49%71%857.13 590.17 419.62 ® Printed by CLONG on Tuesday, July 15, 2025 11:24:52 AM Menu:Reports -> Management Reports -> Analytical Scorecard Page 1 of 1 Analytical Scorecard - Yearly Comparison Summary Collier County Dates of Service: From: 10/01/2017 To: 09/30/2021 ***Additional filter criteria listed on last page of report*** Page 4246 of 4682 CC EMS Bad Debt Write-Off Summary FY 2021 FY 21 Vendor SAP Charges Adjustments Net Billed Payments Collection %Write-Off Write-Off %# of Accts Digitech & Collection Summary 27,566,262.74 (8,379,765.65) 19,186,497.09 13,962,757.07 73%5,223,740.02 27%7901 Digitech Accounts 283,025.83 1% RTR Financial Accounts 4,940,714.19 26% Totals 27,566,262.74 (8,379,765.65) 19,186,497.09 13,962,757.07 73%5,223,740.02 27%7901 5,223,740.02 7/22/2025 Page 4247 of 4682 CC EMS Bad Debt Write Off FY 21 Year Month Claim Count Sales Original Sales Payer Reclass Sales Adj Bad Debt Contractual Adj Cash Receipts AR Net Sales 2020 10 2448 $2,085,485.54 $844,556.53 $838,095.33 $415,935.25 $655,242.66 $1,004,161.30 $16,607.53 $1,436,704.08 2020 11 2509 $2,154,052.00 $896,699.20 $893,523.16 $359,048.95 $681,592.24 $1,113,837.70 $2,749.15 $1,475,635.80 2020 12 2797 $2,370,989.53 $1,015,670.38 $1,009,538.78 $403,849.08 $721,653.13 $1,239,531.10 $12,087.82 $1,655,468.00 2021 1 2855 $2,412,615.92 $1,102,297.46 $1,088,130.96 $438,182.16 $762,399.83 $1,216,937.52 $9,262.91 $1,664,382.59 2021 2 2703 $2,278,386.38 $1,079,814.67 $1,066,915.38 $395,714.95 $710,439.23 $1,188,378.29 ($3,246.80)$1,580,846.44 2021 3 3108 $2,702,470.58 $1,349,438.02 $1,339,104.52 $514,175.91 $827,317.90 $1,355,179.54 $16,130.73 $1,885,486.18 2021 4 2960 $2,483,743.48 $1,091,073.45 $1,083,455.35 $473,846.85 $763,997.58 $1,226,461.05 $27,056.10 $1,727,364.00 2021 5 2691 $2,310,174.92 $1,065,901.88 $1,052,086.49 $463,222.82 $706,178.03 $1,137,511.64 $17,077.82 $1,617,812.28 2021 6 2486 $2,109,817.30 $1,014,144.56 $1,006,699.99 $415,365.68 $663,791.67 $1,019,835.73 $18,268.79 $1,453,470.20 2021 7 2574 $2,131,184.87 $989,365.60 $992,876.02 $422,284.40 $641,232.18 $1,033,791.56 $30,366.31 $1,486,442.27 2021 8 2864 $2,369,045.72 $1,061,440.60 $1,055,389.81 $457,613.36 $730,218.00 $1,147,459.41 $39,805.74 $1,644,878.51 2021 9 2580 $2,160,727.25 $955,901.00 $946,691.10 $398,654.66 $685,610.59 $1,062,492.35 $23,179.55 $1,484,326.56 32575 $27,568,693.49 $12,466,303.35 $12,372,506.89 $5,157,894.07 $8,549,673.04 $13,745,577.19 $209,345.65 $5,440,919.90 SAP $27,566,262.74 $93,796.46 $8,453,445.83 $2,430.75 73,680.18 FY 21 Credit Balances $283,025.83 Total Active AR Bal $5,440,919.90 Total Bad Debt (RTR and Active AR) (217,383.96) RTR Payments 204.08 RTR Adj/interest (217,179.88) RTR Totals $4,940,714.19 RTR Balance $5,223,740.02 FY 21 Write-Off 7/22/2025 Page 4248 of 4682