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Health and Human Services Agency (HHSA) recommending the Board discharge the HHSA Director from further accountability to collect the debts identified on the attached Discharge of Accountability Report in the amount of $2,741,037.30 pursuant to Government Code Sections 25257 through 25259, for the period 2010 through 2018. (Est. Time: 5 Min.)
FUNDING: N/A
Health and Human Services Agency is recommending this matter be Continued off Calendar.
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DISCUSSION / BACKGROUND:
On June 26, 2018 (File ID: 18-0924) the Board discharged the Health and Human Services Agency (HHSA) Director from further accountability to collect ambulance debt in the amount of $1,767,437.66 for the period 2010 through 2017 (note: the prior Board item erroneously stated that the time period covered was 2013-2017). The 2019 request for Discharge of Accountability is approximately $974,000 higher than in 2018. Analysis of the data for 2019 covering the time period of 2007-2018 indicates that the number of accounts being discharged due to bankruptcy increased by 71 over prior year; the number of accounts being discharged due to clients being deceased increased by 850 over prior year, and the number of accounts being discharged due to exceeding the statute of limitations increased by 171.
HHSA contracts with separate billing and collection vendors for collection of Ambulance accounts receivable. HHSA contracts with Access Capital Services, Inc., (Access) for the collection of delinquent accounts, and Access has exhausted its collection efforts for these uncollectible accounts. Additionally, the ambulance billing vendor also provided accounts for discharge. These accounts include some legacy accounts from the prior Ambulance Billing vendor in which information related to the client was unavailable, or did not have the required billing information to bill Medi-Cal accounts within the required timeframe. The discharge represents accounts which were deemed to be uncollectible due to expiration of the statute of limitations, death, or bankruptcy.
Accounts are reviewed at least annually to determine if they meet any of the discharge requirements, however, there is always a possibility that an account was active in one year and then meets the 7 year statute of limitations in the next year due to lack of payment, in which case the dates of service may overlap with those of a prior request for Discharge of Accountability.
Upon approval by the Board, HHSA will take necessary steps to reflect the discharge of accountability with their billing and collection vendors. HHSA will coordinate with the Auditor-Controller’s Office as necessary to ensure appropriate recording of any associated financial transactions.
ALTERNATIVES:
Should the Board decline to discharge accountability of the HHSA Director for the aforementioned accounts, the uncollectible accounts would remain active on the HHSA collections process.
PRIOR BOARD ACTION:
June 26, 2018, File ID: 18-0924, Agenda No. 30
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
N/A
CAO RECOMMENDATION:
It is recommended that the Board approve this item.
FINANCIAL IMPACT:
There is no Net County Cost associated with the Ambulance Billing process. These ambulance billing debts are considered uncollectible and have not been factored into fund balance or projected revenues for the program.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT:
Health and Human Services Agency Strategic Plan Goal 2, Fiscal Responsibility.
CONTACT
Donald Semon, Director