Title
Emergency Medical Services, a division of the Chief Administrative Office, recommending the Board:
1) Discharge the Chief Administrative Office from further accountability to collect debts identified on the attached Discharge of Accountability Report in the amount of $357,917.02 pursuant to Government Code Sections 25257 through 25259, representing uncollectable accounts through December 31, 2024; and
2) Authorize the County Auditor-Controller to adjust the accounts receivable of $357,917.02 in the County Service Area 3 & County Service Area 7 funds accordingly.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The Board’s authority to discharge accountability of debts is based on California Government Section Code Section 25257 to 25259, the “Board of Supervisors may make an order discharging the department, officer or employee from further accountability and if appropriate may direct the County Auditor to adjust any change against the department, officer, or employee in a like amount.” When County debts are determined to be uncollectable for any of the following reasons, the accounts are presented to the Board annually for discharge from further accountability to collect the debts:
1. Small Balance
2. Death of the debtor
3. Bankruptcy
4. Statute of Limitations
5. Uncollectable Debts
Small balance accounts are accounts which the amount owing is too small to justify the cost of collection.
Discharge for Bankruptcy and Death of Debtor require legal documentation. The County’s contracted ambulance billing agency, Wittman Enterprises, and contracted collection agency, Grant Mercantile Agency, obtain confirmation prior to recommending these accounts for discharge of accountability.
Expiration of Statue of Limitations are accounts that are impacted by various state and federal legal limitations of the actions a debt collection agency may take based on the age of a debt. After seven years, most collections activities are no longer permitted, and the debt is considered uncollectible. The accounts in this category have passed their statute of limitations.
Uncollectable Debts represent a variety of accounts that have billing issues, such as timely filing limits, which requires medical billing to be submitted within a specified time after the services; unidentified patients; non-contracted insurance plans, etc. Accounts discharged as Uncollectable Debts are researched by the County in an attempt to prevent these issues from reoccurring, when possible.
The debts that are being recommended for discharge of accountability are considered uncollectable by the Division and have not been factored into any fund balance or revenue projections for the program. The current recommendations include accounts that have been identified as eligible for discharge through December 31, 2024.
On December 13, 2022, the Board of Supervisor discharged the Chief Administrative Office from further accountability of approximately $5.9 million in aging debts (Legistar file 22-0638). This was a one-time discharge due to a change in the contracted collections agency. The newly contracted agency, Grant Mercantile Agency, would not accept debts that had been worked by a prior collections agency without receiving payment in full. Because of the one-time discharge of aging debts, there are no accounts that have reached the statute of limitations for the current discharge; accounts that would have been aging out have already been discharged. Because the statute of limitations is generally the largest category of accounts to be discharged annually, the current year’s discharge is significantly smaller than it has been in previous years.
ALTERNATIVES
Should the Board decline to discharge accountability of the Chief Administrative Office for the listed accounts, the uncollectable accounts would remain an obligation of the Office to pursue.
PRIOR BOARD ACTION
June 18, 2024, Legistar file 24-0962 Discharge of Accountability
December 13, 2022, Legistar file 22-0638 Discharge of Accountability
December 14, 2021, Legistar file 21-0877 Discharge of Accountability
December 8, 2020, Legistar file 20-1442 Discharge of Accountability
October 8, 2019, Legistar file 19-1248 Discharge of Accountability
June 25, 2019, Legistar file 19-0930 Discharge of Accountability
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no Net County Cost associated with the discharge of accountability for these accounts. These debts are considered uncollectable 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
N/A
CONTACT
Sue Hennike, Assistant Chief Administrative Officer