Agenda 09/09-10/2008 Item #10G
AGENDA ITEM
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10 G
EXECUTIVE SUMMARY
Recommendation to adopt a resolution authorizing removal of 11,541 ambulance service
accounts and their respective account receivable balances which total $7,986,828.12, from
the general ledger of Collier County Fund 490 (Emergency Medical Services). Although
the amount was recognized and recorded as Bad Debt Expense during Fiscal Years 2004
and 2005, it cannot be removed without Board adoption of an authorizing resolution.
OBJECTIVE: Adoption of a resolution authorizing the removal of $7,986,828.72 in ambulance
service fee receivables from the general ledger for Fund 490 (Emergency Medical Services).
This request represents total ambulance service fees and 11,541 accounts that have been deemed
uncollectible for Fiscal Years 2004 and 2005.
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 primarily due
to the County's responsibility to protect the public health, safety and welfare.
Historically, the County has experienced, on average, a 65% collection rate and a bad debt
experience rate of 35% on receivable balances remaining after contractual and statutory
adjustments.
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The chart below identifies ambulance service fee activity for Fiscal Years 2004 and 2005.
Contmctual and Number of
Fiscal Gross Charges Other Collection Amountto Write off Accounts to
Year Blled Adjustments Net Billed Amount Collected % Write off % Write Off
04 SI3.019,06100 $2,404,936.25 $10,614,12475 $7,075,591.00 66.66% S3,538,53375 3334% 5,527
05 SI6,901,344.00 $4,486,096.21 $12,415,247.79 $7.966.95282 64.17% $4.448.294.97 35.83% 6.014
Total S29,920,405.OO $6,891,032.46 $23,029,372.54 $15.042.54382 65.32% $7,986,828.72 34.68% 11,541
As can be seen in the preceding chart, there are two types of adjustments that can be made to an
ambulance service account. They are 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, Victim Compensation Rights statutory adjustments, etc. Receivables
are recorded at 100%. When payment is received, contractual adjustments are recorded as a
reduction to revenue.
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Bad debt adjustments represent uncollectible accounts that are detennined by a variety of
reasons, including patients that cannot be located, individuals who either refuse to payor cannot
pay and for services provided to transients, migrants, patients who die with no assets,
bankruptcies, etc, These accounts have been turned over to a collection agency. Any of these
accounts for which a payment might be received will be processed through the Board's
accounting system. Bad debt expense is recorded monthly, based on historical collect
percentages.
Computer printouts listing the accounts to be removed are on file in the Office 0
Medical Services and the Clerk's Board Minutes and Records Department.
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FISCAL IMP ACT: There is no direct fiscal or budgetary impact. The accounts and amounts to
be removed from the General Ledger have been recognized as bad debt in prior years_
LEGAL CONSIDERATIONS: County Resolution No. 08-27, Section 2. H and I, provides for
removing these accounts from the Emergency Medical Services Fund (Fund 490) general ledger.
This item is legally sufficient for consideration by the Board of County Commissioners. - JAB
GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated
with this action.
RECOMMENDATION: Adopt a resolution authorizing the removal of 11,541 individual
accounts with a total receivable balance of $7,986,828.72 from the Emergency Medical Services
Fund (Fund 490) general ledger. The Allowance for Doubtful Accounts in the general ledger
will be reduced by a like amount.
PREPARED BY: Cindy Long, Billing Accountant, Emergency Medical Services
[-~ P.GENDA ~TEM 1
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Recommendation to adopt a resolution authorizing removal of 11, am uTcirice service accounts
and their respective account receivable balances which total $7,986,828.72, from the general ledger
of Collier County Fund 490 (Emergency Medical Services)_ Although the amount was recognized
and recorded as Bad Debt Expense during Fiscal Years 2004 and 2005, it cannot be removed
without Board adoption of an authorizing resolution. (John Yonkosky and Jeff Page)
Prepared By:
Department
Bureau of Emergency Services
Date
8/22/2008 9:23:06 AM
Approved By:
Department
Approval
Date
County Approved
Manager's Office
8/27/2008 11 :41 AM
ATTACHMENTS:
Name:
CI 9-09-08 EMS write.off EX
SlIM.EYo.4c.Q5s1QC
CI Be.,QIl!!loo..6.adReblWrite
Qif,pdf
Description:
Type:
Executive Summary for Bad Debt Write Off
Executive Summary
Resolution for Bad Debt Write Off
Backup Material
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RESOLUTION NO. 2008- Pg SE~"'i",lt-
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AUTHORIZING THE REMOVAL
FROM ACTIVE ACCOUNTS RECEIVABLE OF COLLIER COUNTY,
CERTAIN PAST DUE ACCOUNTS AND THEm RESPECTIVE
BALANCES DETERMINED TO BE 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 in furtherance with the County's responsibility to
protect the public health, safety and welfare; and
WHEREAS, the County's procedure for receivable management includes the periodic
(monthly) recognition of "bad debt expense" for accounts that have been identified as
uncollectible; and
WHEREAS, pursuant to Resolution No. 08-27, Collier County Emergency Medical
Services (EMS) reviews all past due accounts and reports annually to the Board of County
Commissioners (Board) those past due accounts believed to be 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; and
WHEREAS, the subject accounts have not been reported to the Department of Financial
Services, Division of Accounting and Auditing; and
WHEREAS, Resolution No. 08-27 provides that after reviewing these past due accounts
and finding that diligent efforts at collection have proven unsuccessful, the Board may, hy
resolution, remove these past due accounts from active accounts receivable in accordable with
generally accepted accounting procedures.
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 halance
of accounts receivable to be written off (canceled).
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Contractual and
.'illlCal Gross Charges Other Colltttion
Year BllocI Adjustments Net Billed Amount ColIKted ~.
04 $13,019,061.00 $2,404,936.25 SIOM4,124.75 $7,075,591.00 66.66%
05 516,901,344.00 54,486.096.21 SI2.415,247.79 S7,966,952.82 64.17%
Tot'll $29,920,405.00 $6,891,032.46 $23,029,372.54 115,042~43.82 65.32%
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Amountto Write off Accounts to
Wrlteofl' ./. WriteOrr
$3,538,533.75 33.)4% 5,527
$4,448.294,97 35.83% 6,014
$7,986,828.72 3-4.68% 11,541
2. The Board authorizes staff to remove $7,986,828.72 from the Board's Emergency
Medical Services Fund General Ledger control account for accounts receivable, and a like
amount will be removed from the Allowance for Doubtful Accounts General Ledger control
account.
THIS RESOLUTION ADOPTED this _ day of
second and majority vote.
, 2008, after motion,
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
By:
, Deputy Clerk
By:
TOM HENNING, CHAIRMAN
Ap
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