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Ambulance Services Billing Resolution Memorandum a • '0Ul A To: Diane Flagg, Chief Emergency Medical Services gib From: John A. Yonkosky, Director .� Y� Department of Revenue Date: November 16, 1999 Subject: Ambulance services billing resolution Attached is an executive summary and resolution to amend the service fee and charges for ambulance transports. The major changes area as follows: 1. Remove the 7 mile cap on in County transports; 2. Shorten the time constraints from 120 days to 90 days before an account can be turned over to a collection agency; 3. Increase the hourly charge for 2 medic/1 ambulance from $75 per hour to $150 per hour. A copy of the executive summary and the resolution have been sent to the County Attorney's Office for review. I would like to present this to the Board of County Commissioners on December 14, 1999. In order to make the 12/14/99 meeting, the executive summary must be signed and returned to me no later that December 2, 1999. These changes are initiated as a result of the LaRue study. Please call if there are any questions. JAY:pc Attachments C:/with attachments Mike McNees,Acting Emergency Medical Services Administrator Leo Ochs,Jr., Support Services Administrator Teresa A. Riesen, Revenue Manager Department of Revenue Services EXECUTIVE SUMMARY APPROVAL OF A RESOLUTION AMENDING THE COLLIER COUNTY AMBULANCE SERVICE USER FEES OBJECTIVE: Board of County Commissioners adopt the attached resolution amending ambulance service fees in accordance with Ordinance 96-36. CONSIDERATION: In accordance with the County's ordinance regulating ambulance service fees and billing procedures, staff periodically prepares and presents for Board consideration a resolution amending the fee structure and billing procedures. Prior to September, 1994, ambulance service bills were generally submitted directly to transportees for payment. In September of 1994, the Board approved a change in the billing process wherein staff could accept assignment from Medicare. Accepting Medicare assignment allowed Medicare reimbursement to be made directly to the County. The transportee would be billed for any allowable unpaid balances (co- insurance). A history of rates established by Board action is as follows: BASE MILEAGE MILEAGE CAP MILEAGE CHARGE DATE RATE RATE IN COUNTY OUT OF COUNTY 9/24/94 $250 -0- -0- -0- 6/25/96 $302 -0- -0- -0- 10/13/98 $300 $5/mi 7 Unlimited Proposed $300 $5/mi Unlimited Unlimited The major change in the attached Resolution is to eliminate the 7 mile mileage cap. All "loaded"mileage would be billed for In-County transports. For comparison purposes, the following is provided: TOTAL MILES GROSS COLLECTED FY99 RATE MILES BILLED REVENUE na, 65% Current $5/mi 180,000 100,000 $500,000 $325,000 Proposed $5/mi 180,000 180,000 $900,000 $585,000 The average "loaded" mileage is estimated to be approximately 15 miles per transport. Therefor the average bill would be as follows: BASE MILEAGE AVERAGE RATE BASE RATE MILES BILL Current NA $5/mi 7 $35 Proposed NA $5/mi 15 $75 Impact on transportees by group is anticipated as follows: 100% All transports would see an increase of$40. 38% Medicare transportees would see a co-insurance increase of$8.40. 10% Medicaid does not pay for mileage. 25% Commercial insurance carriers generally follows Medicare rules; however, the co- insurance will increase from $-0-to $40 depending on the carrier. 20% No insurance (includes indigents) will see an increase of$40. 7% All others (Victim's Compensation; Probate; etc.) generally do not pay mileage. 100% A second proposed change is the "stand-by" charge for special events. A "stand-by" charge is the hourly fee to have an ambulance staffed by two (2) paramedics on location for special events such as location filming; concerts; motor sport events; etc. The existing "stand-by" hourly rate is $75. Staff is proposing this fee be increased to $150 per hour. A third proposed change shortens the time billing staff must wait for bill processing. A summary of these changes is as follows: FROM DATE OF SERVICE CURRENT PROPOSED Initial bills rendered 30 days 15 days 2„d bill rendered 60 days 30 days 3`d bill rendered(past due notice) 90 days 60 days 4th bill rendered(collection agency notice) 120 days 90 days If approved, the above time parameters will apply to all bills except for Medicaid. If the Medicaid bill is denied,the County cannot bill the transportee. There are no recommended changes for the interest, hardship and fee waiver provisions. The above-listed changes were recommended as a result of a study of Collier County ambulance billing activity. The study was conducted by LaRue Planning and Management Services, Inc. FISCAL IMPACT: Approval of the mileage change (no cap for In-County transports) should increase revenues in the EMS Enterprise Fund by approximately $250,000 annually. GROWTH MANAGEMENT IMPACT: N/A RECOMMENDATION: Board of County Commissioners approval of Resolution amending ambulance service user fees and authorization for the Chairperson to sign. SUBMITTED BY: �c�4, / Date: / / / $`7 Teresa A. Riesen, Revenue Manager Department of Revenue Services REVIEWED BY: la_���,. ir..��1 \►r►. Date: \ (\b\g.� Jo i, 4 Yonke_. , D irector Depa�. ►kb-nt of Reve ue .-rvices REVIEWED BY: Date: Diane Flagg, Chief Emergency Medical Services APPROVED BY: Date: Leo Ochs, Jr., Administrator Support Services Division APPROVED BY: Date: Mike McNees, Acting Administrator Emergency Medical Services RESOLUTION NO. 99 - RESOLUTION APPROVING USER FEES FOR COLLIER COUNTY AMBULANCE SERVICES PURSUANT TO COLLIER COUNTY ORDINANCE NO. 96 - 36; ADOPTING BILLING AND COLLECTION PROCEDURE; PROVIDING ADJUSTMENTS AND WAIVERS; AND APPROVING HARDSHIP CASES AND PAYMENT PLANS 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, Collier County staff analysis of the cost for ambulance services requires an adjustment to the user fees to properly identify current costs of services to the residents and visitors of Collier County; and WHEREAS, Collier County Ordinance 96 - 36 provides that the user fees for ambulance services may be established by Resolution of the Board of County Commissioners (hereinafter sometimes referred to as "the Board"). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA that: SECTION ONE: EMS USER FEES USER FEE CHARGE A. EMS AMBULANCE TRANSPORT BASE RATE $ 300 B. EMS AMBULANCE TRANSPORT PER MILE $ 5 - IN COUNTY TRANSPORTS FOR ALL LOADED MILES - ACTUAL LOADED MILES FOR OUT OF COUNTY INTER FACILITY TRANSPORTS C. SPECIAL EVENTS: - TWO (2) MEDICS/ONE VEHICLE (PER HOUR) $ 150 - ONE (1) MEDIC/NO VEHICLE (PER HOUR) $ 40 D. COPIES OF DOCUMENTS/PER PAGE $ 1 (EXCLUDING GOVERNMENTAL AGENCIES) E. INTEREST ON PAST DUE ACCOUNTS 1% 1 SECTION TWO: BILLING AND 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 service provision, as services dynamics reasonably permit. Unpaid fees and charges, subsequent to time of service, shall be reflected in an accounts receivable subsidiary ledger system to be maintained by the Department of Revenue Services. B. An initial bill for ambulance services shall be processed in the following manner within fifteen (15) days after service is provided. 1. The County will send an initial bill to the service recipient's or responsible party's insurance carrier provided that appropriate insurance information is made available to the County. The County will accept Medicare assignment, as a participating provider, and will wait no less than 30 days for payment if Medicare or other insurance carrier is billed. If the claim is denied due to non-coverage, a bill will be sent to the service recipient or responsible party. 2. The County will also send a bill to Florida Medicaid and accept assignment if appropriate insurance information is made available to the County by the service recipient or responsible party. The County will wait no less than 30 days for payment if Medicaid is billed. If the claim is denied, a bill will sent to the service recipient or responsible party. 3. In the event the service recipient or responsible party does not have or does not provide proof of insurance coverage, the bill for ambulance service(s) shall be sent directly to the service recipient or responsible party for payment. The County will wait no less than 30 days for payment. The following will occur if payment has not been received within above set guidelines: a. A past due notice will be sent in accordance with the above provisions (30 days after billing third party or Medicare, 30 2 days after billing Medicaid and 30 days after billing responsible party or service recipient). b. Thirty (30) days) after the first past due notice is sent, a second past due notice will be sent. C. After a ten (10) day grace period, the account will be sent to the County's contracted collection agency. C. Interest will be assessed at 1% per month on all accounts that are either sent to the County's contracted collection agency or set up for a payment plan (excluding hardships that adhere to County policy). D. 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 any time fail to meet the terms and conditions of the payment plan, the unpaid balance shall be administered in accordance with Section B.3 above. E. When ambulance service bill(s), at any stage in this billing and collection procedure, are returned because the Postal Service cannot effectuate delivery, the County shall make a reasonable effort to ascertain the correct mailing address. If reasonable efforts to ascertain a correct address fail, the account(s) may be considered for other collection alternatives. F. Nothing contained in this section shall preclude reasonable telephone or other appropriate contact for billing and collection purposes, in accordance with all applicable laws. G. Throughout the fiscal year, the Department of Revenue Services 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. The Board shall, 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. 3 SECTION THREE: ADJUSTMENT OF EMS USER FEES The following shall be minimum guidelines for adjustments to ambulance service fees. Other adjustments are authorized by the Board of County Commissioners in accordance with criteria established by the enabling Ordinance. A. Medicare and Medicaid Adjustments Contractual adjustments under Medicare assignment will be made in accordance with applicable rules and regulations B. Victim's Compensation Contractual Adjustments; Probate Adjustments Contractual adjustments will be made in accordance with applicable rules and regulations. SECTION FOUR: WAIVER OF EMS USER FEE Pursuant to Ordinance No. 96 - 36, and from the effective date of this Resolution, user fees for EMS ambulance stand-by services for the following community special events shall be waived as the Board finds that a valid public purpose is hereby established in recognition of their charitable contributions to the Community: (1) Collier County Fair; (2) Everglades Seafood Festival; (3) Senior PGA; and (4) Nuveen Masters; (5) Collier County Public School varsity football games. Fees for other community special events may be waived in accordance with criteria established by the enabling Ordinance. SECTION FIVE: 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 State's Financial hardship guidelines, as used by HRS-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 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. 4 SECTION SIX: SUPERSESSION OF RESOLUTION 98-419 This Resolution shall supersede Resolution No. 98 -419 SECTION SEVEN: ADOPTION AND EFFECTIVE DATE This Resolution shall become effective on December 14, 1999. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this day of , 1999. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, CLERK OF COLLIER COUNTY, FLORIDA BY: BY: PAMELA S. MAC'KIE, CHAIRWOMAN Approved as to form and legal sufficiency: David C. Weigel County Attorney 5