Title
Health Services Department recommending the Board authorize the Chair to sign Amendment III to Agreement for Services 534-PHD0606 (230-S0711) with Wittman Enterprises, LLC amending Article I - Scope of Services; Article IV - Term, extending the Agreement through June 30, 2011; Article V - Compensation; and replacing Exhibit A - Ambulance Rate Schedule with an amended Exhibit A - Ambulance Rate Schedule Effective June 1, 2010.
FUNDING: Ambulance billing collections.
Body
Fiscal Impact/Change to Net County Cost: There is no Net County Cost associated with this Agreement. This Agreement compensates the vendor at the rate of 4.75% of net ambulance billing collections.
Background: The Board approved the County's agreement with Wittman Enterprises on June 27, 2006 to conduct ambulance billing services on its behalf. The Board approved Amendment I on December 12, 2006 clarifying scope and compensation terms, and Amendment II on June 6, 2009 extending the term of the Agreement through June 30, 2010.
Amendment III incorporates the following changes:
Change to Scope of Services - Wittman processes refunds to payers that are required as a result of payer overpayments and then invoices the County for reimbursement of such refund payments. The current Agreement requires Wittman to submit a copy of each patient's credit report along with each invoice to the County for reimbursement of refunds. The Department has determined that the credit report is not required to process these reimbursements. Accordingly, Amendment III modifies the Scope of Services to remove this data requirement.
Change to Compensation - Language has been added to ensure that monies received on past due accounts which have been submitted to the County's designated collection agent shall be deposited and reported separate from standard payments received. This language ensures that the County's designated collection agent receives appropriate reimbursement for all past due accounts successfully collected.
Change to Term - The original Agreement established an initial three year term and allowed for two subsequent one year extensions. Amendment II executed the first one year extension and Amendment III executes the second one year extension, taking the term of the Agreement through June 30, 2011.
Exhibit A - The current Agreement with Wittman includes the then most current Ambulance Rate Schedule from 2008. However, on May 24, 2010 the Board of Supervisors approved a revised Ambulance Rate Schedule via Board item 10-0415 to be effective June 1, 2010. This Amendment III replaces the original Exhibit A with the now current Ambulance Rate Schedule.
The Procurement and Contracts Division reviewed the Department's request for this Amendment III to that Agreement, and concurs that a competitive selection process occurred with the original Agreement and the process has not yet expired. The original outside reviewer concurred that the vendor is qualified and able to perform the services required under this Agreement, in accordance with Board of Supervisors Policy C-17, ยงยง 7.4.2, 7.5 and 7.10.
Reason for Recommendation: Approval of this Amendment III to Agreement 534-PHD0606 will enable continuity of ambulance billing services by Wittman Enterprises, LLC, through June 30, 2011.
Action to be taken following Board approval:
1. Board Chair to sign three (3) original Amendments III to Agreement 534-PHD0606.
2. Board Clerk's Office to return two (2) fully executed Amendments III to Department.
3. Department to distribute documents as appropriate.
Contact: Kathy Lang
Concurrences: Procurement & Contracts; County Counsel & Risk Management