Westminster City Council
SUBJECT
Title
Amendment No. 1 to the Agreement with Wittman Enterprises, LLC for Ambulance Transportation Billing Services.
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publichearing
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From: Erin Backs, Finance Director
Requested by: Administration
Prepared by: Erin Backs, Finance Director
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RECOMMENDED ACTION
Recommendation
Approve Amendment No. 1 to the existing agreement with Wittman Enterprises, LLC. for ambulance transportation billing services.
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BACKGROUND
The City has been contracting with Wittman Enterprises, LLC (Wittman) to process billing of paramedic and emergency ambulance transportation since October 2012. The current contract began July 2018 and continued for five years with two option year renewals.
Amendment No. 1 increases the annual percentage cap from $150,000 to $300,000 to more accurately reflect the amount necessary to perform the billing and collections duties as detailed in the existing contract. This amendment applies to the remainder of FY 2023-24 and to FY 2024-25 which is the final year of the agreement.
Wittman offers an advanced technology billing and reporting system with automatic generation of Medicare, Medi-Cal, Workers’ Compensation, Personal Injury Protection, and third-party insurance company claim statements. Wittman sends out initial invoices within three days of receiving patient care reports, immediately posts payments, updates patient billing information, and cross-references all database information pertaining to patient files. Billing services are conducted strictly in accordance with all local, state and federal laws and statues, including Health Insurance Portability and Accountability (HIPAA) and Red Flag rules and regulations. Wittman timely and accurately processes all billings and follow-up, refunds, and overpayments, and handles special accounts, including arranging and managing payment plans.
The contract compensation is calculated at 5.35% of the net proceeds but includes a $150,000 annual payment cap. Ambulance charges have been set to match the county rates, which increase annually. In addition, the Public Provider Ground Emergency Medical Transport (PP-GEMT) Intergovernmental Transfer Program (IGT) program (which is the gap funding for Medi-Cal) has increased the payment per transport and that has driven up the collected revenues proportionately. As of April 2024, FY 2023-24 collections already exceed FY 2022-23 actuals. With 4 months of receipts remaining, this could potentially be an additional $1.5 million. This additional revenue will increase the amount owed to Wittman Enterprises.
The City Council approved an increase to the purchase order for FY 2022-23 on July 26, 2023, for a total of $176,000. The current FY 2023-24 purchase order for $150,000 was approved by the City Council on September 27, 2023. With projected revenue potentially $1.5 million above the prior year, we will need to increase the purchase order by $150,000 for the remainder of FY 2023-24. Approval of the recommended Amendment will enable the City to pay Wittman the full amount owed for the remainder of FY 2023-24 and will provide a more accurate amount for the FY 2024-25 purchase order.
FISCAL IMPACT
The annual cost for this agreement is estimated at $300,000 and is available in the Ambulance Services contractual budget account 44000-43090 for the remainder of FY 2023-24 and will be included in the budget for FY 2024-25.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Amendment No. 1 with Wittman Enterprises, LLC will cover paramedic and Emergency ambulance transportation billing services for the remainder of FY 2023-24 and for FY 2024-25.
ATTACHMENTS
1. Amendment No. 1 to the agreement with Wittman Enterprises, LLC for Ambulance Transportation Billing Services;
2. September 27, 2023 Staff Report approving the FY 2023-24 purchase order.
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager