Title
To authorize the Director of Public Safety to modify and extend the current contract with MED3000, Inc. for EMS billing, collection, and reporting services for the Division of Fire; to authorize the expenditure of $750,000.00 from the General Fund; and to declare an emergency. ($750,000.00)
Explanation
BACKGROUND: This legislation authorizes the Director of Public Safety to modify the existing contract with MED3000, Inc. for EMS billing, collection, and reporting services. The City entered into a contract with MED3000, Inc. via ordinance 1508-2007 in October 2007. The term of the contract is for three years ending in October 2010. The contract modification is for two additional years beginning in October 2010.
The Division of Fire's third party EMS reimbursement program was initiated via ordinance #1184-2002 passed in July 2002. The initial contract with ACS State and Local Solutions Inc. was modified five times. The last modification with ACS was effective January 1, 2008 for six months and was for ACS to exercise the option of collecting outstanding receivables on current accounts.
Public Safety contracts for the billing, collection, and reporting of those who are transported to hospitals by EMS personnel for emergency medical care. These billing, collection, and reporting services have generated a multitude of patient care information used by the Fire Division to better prepare EMS response protocols and, in turn, respond to citizens in a more effective manner. The division also generates reports for various fire organizations that are catalogued nationwide.
To date, this program has generated in excess of $74.5M in revenue since its inception.
Contract Compliance: 251837785; expires 02/01/2012
Emergency Designation: Emergency action is requested so that EMS billing, collection and reporting services can continue without interruption.
FISCAL IMPACT: The Division of Fire budgeted $2.3 million in the 2010 General Fund operating budget for these services. So far $1.5 million has been expended/encumbered. This ordinance will fund the contract modification through approximately March 2011. In 2009, $1.5 million was initially budgeted for these services, and an additional $720,000.00 was needed by year end to pay for higher than expected revenues from EMS billing services. Total revenues so far in 2010 are approximately $12 million. Revenues in 2009 were approximately $14.3 million.
Body
WHEREAS, the City contracts for EMS billing, collection and reporting services, as initiated via Ordinance #1184-2002, passed July 22, 2002; and
WHEREAS, it is necessary to modify and extend the current contract with MED3000, Inc., for EMS billing, collection and reporting services; and
WHEREAS, the City and Contractor have entered into a performance based contract which awards incentives for outstanding performance and provides for damages should the Contractor fail to adequately perform; and,
WHEREAS, the base rate of Contractor's compensation is reduced from 13% to 9.5 % which will save the City approximate $1,000,000 over the two year contract extension period; and,
WHEREAS, the Contractor will still dedicate two professionals to support the computers and software applications, will extend warranties on all computers; pay for an audit to be performed on behalf of the City; and,
WHEREAS, an emergency exists in the usual daily operation of the Division of Fire, Department of Public Safety, in that it is immediately necessary to modify and extend the current contract with MED3000, Inc. so that EMS billing, collection and reporting services can continue without interruption, thereby preserving the public health, peace, property, safety and welfare; Now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That the Director of Public Safety is hereby authorized to modify and extend the existing contract between the City and MED3000, Inc. for the Division of Fire's EMS billing, collection and reporting services.
SECTION 2. That the expenditure of $750,000.00, or so much thereof as may be necessary, is hereby authorized to be expended from the General Fund 010, Department of Public Safety 30, Division of Fire 30-04, OCA 301559, OL3 Code 3336 to pay the cost thereof.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, 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.