Agenda 06/13/2017 Item #11E06/13/2017
EXECUTIVE SUMMARY
Recommendation to adopt a resolution authorizing the removal of 7,185 ambulance service
accounts and their respective uncollectible accounts receivable balances which total $5,627,794.58,
from the accounts receivable of Collier County Fund 490 (Emergency Medical Services) finding
diligent efforts to collect have been exhausted and proved unsuccessful.
OBJECTIVE: Adoption of a resolution authorizing the removal of $5,627,794.58 in ambulance service
fee receivables from the accounts receivable for Fund 490 (Emergency Medical Services). This request
represents total uncollected ambulance service fees for 7,185 accounts from Fiscal Year 2013 where
diligent efforts to collect have been exhausted and proved unsuccessful.
CONSIDERATIONS: Collier County began providing emergency ambulance transportation services in
1981. Unlike the majority of governmental services provided by the County, where fees are normally
received before services are provided, emergency ambulance services are provided and fees are received
after the fact. This “service before fee” scenario is due to the County’s responsibility to protect the public
health, safety and welfare.
The chart below identifies ambulance service fee activity for Fiscal Year 2013.
As can be seen in the preceding chart, 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 amou nts
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 the EMS department. 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. If any payments are received, they will be processed through the
Board’s accounting system.
FISCAL IMPACT: Removal of $5,627,794.58 from the EMS Accounts Receivable will remove 7,185
individual customers’ accounts and reduce the allowance for doubtful accounts in fund 490.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney.
11.E
Packet Pg. 366
06/13/2017
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: Adopt a resolution authorizing the removal of 7,185 individual accounts with a
total receivable balance of $5,627,794.58 from the Emergency Medical Services Fund (Fund 490)
accounts receivable.
PREPARED BY: Artie R. Bay, Supervisor, EMS Admin., Emergency Medical Services
ATTACHMENT(S)
1. Resolution 08-27 (PDF)
11.E
Packet Pg. 367
06/13/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.E
Doc ID: 3220
Item Summary: Recommendation to adopt a resolution authorizing the removal of 7,185
ambulance service accounts and their respective uncollectible accounts receivable balances which total
$5,627,794.58, from the accounts receivable of Collier County Fund 490 (Emergency Medical Services)
finding diligent efforts to collect have been exhausted and proved unsuccessful. (Len Price,
Administrative Services Department Head)
Meeting Date: 06/13/2017
Prepared by:
Title: Supervisor - Accounting – Administrative Services Department
Name: Artie Bay
05/16/2017 1:20 PM
Submitted by:
Title: Department Head - Administrative Svc – Administrative Services Department
Name: Len Price
05/16/2017 1:20 PM
Approved By:
Review:
Emergency Medical Services Tabatha Butcher Additional Reviewer Completed 05/19/2017 1:11 PM
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 05/22/2017 4:17 PM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 05/23/2017 5:07 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/24/2017 7:47 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/24/2017 2:33 PM
Office of Management and Budget Laura Wells Additional Reviewer Completed 05/26/2017 9:11 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/04/2017 11:37 AM
Board of County Commissioners MaryJo Brock Meeting Pending 06/13/2017 9:00 AM
11.E
Packet Pg. 368
11.E.1
Packet Pg. 369 Attachment: Resolution 08-27 (3220 : Adopt Resolution to remove uncollectible accounts)
11.E.1
Packet Pg. 370 Attachment: Resolution 08-27 (3220 : Adopt Resolution to remove uncollectible accounts)
11.E.1
Packet Pg. 371 Attachment: Resolution 08-27 (3220 : Adopt Resolution to remove uncollectible accounts)
11.E.1
Packet Pg. 372 Attachment: Resolution 08-27 (3220 : Adopt Resolution to remove uncollectible accounts)
11.E.1
Packet Pg. 373 Attachment: Resolution 08-27 (3220 : Adopt Resolution to remove uncollectible accounts)