Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Public Safety to enter into an agreement with Public Consulting Group LLC (PCG) for services related to the development of an Ambulance Supplemental Payment Program (ASPP). Since 2006, which began the inception of ASPPs nationally, PCG has been instrumental in developing and operating programs with a wide range of city and county fire departments and ambulance service providers across the country. These efforts have led to maximizing Medicaid reimbursement, while assuring program compliance for the EMS provider community. To date, PCG has worked with over 550 Fire and EMS departments in over 20 states, helping providers recover over $1 billion.
For over 15 years, PCG has worked with individual fire and EMS departments to increase Medicaid reimbursement for ambulatory services. Most notably, PCG assisted the State of Texas with the establishment of the first Ambulance Supplemental Payment Program in the country, and subsequently supported a multitude of states with the approval and implementation of their programs. As the result of their dedicated work in this arena, PCG has acquired in-depth expertise working with city governments, fire departments, Medicaid agencies, and ambulance service providers to identify reimbursable costs and to complete or facilitate the completion of annual cost reports.
PCG’s project team includes experts across the country who are well versed in all phases of Medicaid supplemental payments, across many landscapes and provider types. PCG has designed and built similar programs for many state Medicaid agencies and managed the development and submission of over 500 cost reports for public EMS service providers, which far surpasses that of any other vendor. In fact, PCG has contracted with both state Medicaid agencies and EMS providers to design, implement, and administer these programs. PCG is also the only vendor to offer the full set of comprehensive A-Z services, from program design to program administration and auditing to a web-based portal for providers.
PCG was selected as the vendor for this purchase because PCG is the only vendor that is already familiar with Columbus’s EMS data. In 2022, the City of Columbus contracted with PCG to conduct a year-long project related to CMS’ required Medicare Ground Ambulance Data Collection (MGADC). Through this contract, the City already provided to PCG similar expenditure data to what will be requested as part of the cost reporting process for an ASPP. PCG analyzed this data to successfully complete the cost survey in accordance with CMS requirements and, therefore, is familiar with the intricacies that make the data unique to Columbus.
Additionally, PCG is the only vendor that provides a full-service delivery model, including the use of a web-based solution which includes:
• ASPP Implementation: Develop, design, and implement the Ambulance Supplemental Payment Program (ASPP), including drafting application materials and responding to additional information requests necessary for provider participation.
• Fiscal Impact Study: Prepare a fiscal impact study and present results to city/department stakeholders to demonstrate benefits of a supplemental payment program to the provider.
• Web Portal Development: Develop customized web portal to assist with cost report calculation and auditing process.
Furthermore, in recognition of Columbus' early adoption of the program and continued partnership with PCG, PCG has agreed to provide a lower contingency fee to the Department in the second and third year of the program, making their pricing most favorable in comparison to other vendors.
Bid Information: This purchase is recommended to be made with a waiver of formal bidding requirements, because of PCG’s established familiarity with Columbus’ EMS data, distinguished expertise across the country, and its favorable pricing.
Emergency Designation: Emergency legislation is requested because of the need to get this agreement implemented as soon as possible and maintain the capabilities of ambulance service providers across the city.
FISCAL IMPACT: This ordinance authorizes the Department of Public Safety to enter into an agreement with Public Consulting Group LLC (PCG) for development of an Ambulance Supplemental Payment Program (ASPP). Funds will be encumbered separately in a future ordinance, most likely in 2026. The agreement will bring in an estimated $10-$13 million in revenue to the General Fund each year. Once revenue is received, the City will pay a percentage of that revenue to PCG 2-4 weeks later as outlined in the agreement. The agreement provides for an expenditure of Ten Percent (10%) of the federal share portion of payments received by the City under the Ambulance Supplemental Payment Program for the first annual cost reporting period submission, Eight Percent (8%) for the second cost reporting period, and Six Percent (6%) for the third cost reporting period.
Title
To authorize the Director of the Department of Public Safety to enter into an agreement with Public Consulting Group LLC for services related to the development of an Ambulance Supplemental Payment Program (ASPP); to waive the competitive bidding provisions of the Columbus City Code Section 329; and to declare an emergency. ($0.00)
Body
WHEREAS, the Department of Public Safety has the need to develop an Ambulance Supplemental Payment Program (ASPP); and,
WHEREAS, the Director of the Department of Public Safety seeks authorization from City Council to enter into an agreement with Public Consulting Group LLC for the development of an Ambulance Supplemental Payment Program (ASPP); and,
WHEREAS, the Department of Public Safety recommends that it is in the City's best interest to waive the competitive bidding procedures of City Code Chapter 329 to allow for this agreement in order to take advantage of the competitive pricing and nationally recognized expertise of the Public Consulting Group LLC ; and,
WHEREAS, funds will be encumbered separately in a future ordinance in either 2025 or 2026. The agreement will bring in an estimated $10-$13 million in revenue to the General Fund each year. Once revenue is received, the City will pay a percentage of that revenue to PCG 2-4 weeks later as outlined in the agreement. The agreement provides for an expenditure of Ten Percent (10%) of the federal share portion of payments received by the City under the Ambulance Supplemental Payment Program for the first annual cost reporting period submission, Eight Percent (8%) for the second cost reporting period, and Six Percent (6%) for the third cost reporting period; and,
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Safety, in that it is immediately necessary to enter into an agreement with Public Consulting Group LLC for the development of an Ambulance Supplemental Payment Program (ASPP) as soon as possible in order to maximize Medicaid reimbursement, while assuring program compliance for the EMS provider community, all for the immediate preservation of the public health, peace, property, safety, and welfare; and now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Public Safety Director is hereby authorized to enter into an agreement with Public Consulting Group LLC for the development of an Ambulance Supplemental Payment Program (ASPP).
SECTION 2. That this Council finds it is in the City's best interest to waive the competitive bidding requirements of the City Code to allow for the aforementioned contract with Public Consulting Group LLC.
SECTION 3. That funds will be encumbered separately in a future ordinance in either 2025 or 2026. The agreement will bring in an estimated $10-$13 million in revenue to the General Fund each year. Once revenue is received, the City will pay a percentage of that revenue to PCG 2-4 weeks later as outlined in the agreement. The agreement provides for an expenditure of Ten Percent (10%) of the federal share portion of payments received by the City under the Ambulance Supplemental Payment Program for the first annual cost reporting period submission, Eight Percent (8%) for the second cost reporting period, and Six Percent (6%) for the third cost reporting period
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part thereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.