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Chief Administrative Office, Procurement and Contracts Division, on behalf of the Health and Human Services Agency (HHSA), recommending the Board approve the following:
1) Award Request for Proposal (RFP) 16-918-009 to the successful proposer, Advanced Data Processing, Inc., a subsidiary of Intermedix Corporation, for the provision of ambulance billing services;
2) Authorize HHSA, Public Health Division, to negotiate an Agreement for Services with Advanced Data Processing, Inc. with compensation based on a negotiated percentage of all ambulance billing receipts, for a three-year term;
3) Authorize the Chair to execute said Agreement for Services, contingent upon approval by County Counsel and Risk Management; and
4) Authorize the Purchasing Agent, or designee, to execute any amendments relating to the Agreement developed in association with RFP 16-918-009, which do not increase the maximum dollar amount or term of the Agreement, and contingent upon approval by County Counsel and Risk Management.
FUNDING: Fixed percentage of ambulance billing net receivables.
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DEPARTMENT RECOMMENDATION
Procurement and Contracts Division, on behalf of the Health and Human Services Agency (HHSA) recommending the Board award Request for Proposal 16-918-009 for ambulance billing services to Advanced Data Processing, Inc., a subsidiary of Intermedix Corporation, authorize HHSA to negotiate an agreement with the selected proposer, and authorize the Chair to execute the resulting Agreement contingent upon approval by County Counsel and Risk Management.
The ambulance billing revenue collected defrays the County’s cost as the provider of ambulance services in County Service Area 3 and in County Service Area 7.
Additionally, HHSA has determined, in accordance with County Ordinance Section 3.13.030(H), it is more economical and feasible to engage an independent contractor for ambulance billing services.
DISCUSSION / BACKGROUND
On September 15, 2015, the Procurement and Contracts Division, on behalf of the Health and Human Services Agency, released Request for Proposal (RFP) 16-918-009, soliciting responses for ambulance billing services. The RFP closed on October 22, 2015, and four responsive proposals were received. The four responses were evaluated by a three member panel comprised of representatives from the Administration/Fiscal Division and Emergency Medical Services Division of HHSA. After evaluation of the proposals, meetings were scheduled with the three most competitive respondents to obtain clarifying information. The meetings were attended by the evaluation panel, the Chief Fiscal Officer of HHSA and a representative from Marshall Medical Center. The result of the evaluation process was a recommendation by the evaluation panel to award the RFP to Advanced Data Processing as the most competitive proposer to the requested services.
The last RFP was released in 2006, by the Procurement and Contracts Division, on behalf of the Public Health Department. At that time, the County of El Dorado was one of very few counties in which County staff performed ambulance billing services. However, as the billing requirements became more complex, and compliance obligations associated with billing and collection processes increased, the Public Health Department began considering contracting for these services. Following extensive analysis of the County’s ambulance billing processes, it was found that the ambulance billing services could be performed by a contractor with greater efficiency and cost savings to the public, resulting in the release of an RFP being on behalf of the Public Health Department. HHSA has determined it continues to be more efficient and cost effective to contract for ambulance billing services.
Payments to the current ambulance billing contractor, based on a percentage of net ambulance billing receipts, for FY 2014-15 totaled $429,424.
ALTERNATIVES
Should the Board decline to award RFP No. 16-918-009, Agreement for Services No. 067-S1211 with the current contractor will expire effective June 30, 2016 and there will be a lapse in ambulance billing services.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement and Contracts
CAO RECOMMENDATION
It is recommended that the Board approve this item.
FINANCIAL IMPACT
There is no Net County Cost associated with this Agenda item. Sufficient appropriations will be included in the Fiscal Year 2016-2017 budget request, and will be included in future budgets for the term of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Following Board approval, the Clerk of the Board will provide a copy of the approved minute order to HHSA at 3057 Briw Road.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Don Ashton, M.P.A., Director