Explanation
BACKGROUND: This legislation authorizes the Director of Public Safety to modify the existing contract with Change Healthcare (formerly dba MED3000) for EMS billing, collection, and reporting services. The City entered into a contract with MED3000, Inc. via ordinance 2505-2012 in December 2012. The term of this contract is November 1, 2012 to December 31, 2018. This ordinance will provide $1.5M to Change Healthcare for EMS billing services and a blanket amount of $125,000.00 to process refunds to insurance companies or patients that are inadvertently billed for services. The Division of Fire's third party EMS billing program was originally initiated via ordinance #1184-2002 passed in July 2002. MED3000 is now doing business as ChangeHealthcare under a new FID number.
Public Safety contracts the services of Change Healthcare 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. Revenue generated since inception of the program amounted to over $180 million at the end of December 2017 and is deposited in the city's General Fund.
Contract Compliance: Change Healthcare 23-2939847 (formerly doing business as Med3000).
Emergency Designation: Emergency action is requested so that EMS billing, collection and reporting services can continue without interruption.
FISCAL IMPACT: This legislation is to contract with Change Healthcare (formerly dba MED3000) for billing and collection services at a cost of $1.5M, and to set up a blanket amount of $125,000.00 to pay refunds for inadvertent billing. The Division of Fire budgeted $1.8M in the 2018 General Fund operating budget for billing and collection services. Expenditure/Encumbrances for EMS billing totaled $1.6M and $1.7M, respectively, in years 2016 and 2017.
Title
To authorize the Director of Public Safety to modify the current contract with Change Healthcare for EMS billing, collection, and reporting services for the Division of Fire; to authorize the expenditure of $1,500,000.00 for collection services and $125,000.00 for refunds from the General Fund; and to declare an emergency. ($1,625,000.00)
Body
WHEREAS, the City contracts for EMS billing, collection, and reporting services, as initiated via Ordinance #1184-2002, passed July 22, 2002; and,
WHEREAS, the City entered into a contract with MED3000 via Ordinance 2505-2012, passed December 3, 2012, to continue to provide EMS billing services; 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 authorize the Director to modify the current contract with Change Healthcare, formerly dba as 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 the existing contract between the City and Change Healthcare, formerly dba as MED3000, Inc., for the Division of Fire's EMS billing, collection, and reporting services.
SECTION 2. That the expenditure of $1,625,000.00, or so much thereof as may be necessary, is hereby authorized from the General Fund 1000-100010, per the accounting codes in the attachment to this ordinance.
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.