Westminster City Council
SUBJECT
Title
Approve the Agreement with Wittman Enterprises, LLC for Ambulance Transportation Billing Services.
End
From: Erin Backs, Finance Director
Requested by: Administration
Prepared by: Erin Backs, Finance Director
____________________________________________________________
RECOMMENDED ACTION
Recommendation
A. Approve an agreement with Wittman Enterprises, LLC. for ambulance transportation billing services for Fiscal Year 2025-2032, for a seven-year term, at a rate of 3.75% of net collections; and
B. Authorize the City Manager to execute the contract on behalf of the City.
end
BACKGROUND
Wittman Enterprises, LLC (Wittman) has satisfactorily provided billing services to the city for paramedic and emergency ambulance transportation since October 2012. The current contract started in July 2018 and had a five-year term with two one-year renewal options at a rate of 5.35% of net collections. FY 2024-25 is the final year of the agreement.
Wittman has extensive experience in invoicing, categorizing, recording, monitoring, supervising, and managing ambulance billing and EMS cost recovery systems and services. EMS billing and collections is a complex service that entails gathering patient insurance information, processing Medicare and Medi-Cal claims for reimbursement, continuously training on governmental regulatory requirements, and maintaining compliance with dynamic health care laws and regulations. All services performed by Wittman comply with current local, state, and federal laws and regulations, including Health Insurance Portability and Accountability (HIPAA) and Red Flag rules and regulations. Wittman services also maximize the legal cost recovery to the city from various sources, including Medicare, Medi-Cal, private insurance, and private pay for EMS and transport services provided. This expertise has enabled Wittman to ensure timely and accurate billing processes for all transactions on behalf of the city.
Wittman provides services to more than 140 public EMS clients in California, including 12 in Orange County such as Santa Ana, Anaheim, Orange, Costa Mesa, and Fountain Valley. The City of Santa Ana recently conducted an RFP process for ambulance billing services and chose Wittman at a rate of 3.75% for a three-year term with three option year renewals based on their extensive experience with EMS cost recovery systems and services.
The City of Westminster’s current contract compensation is calculated at 5.35% of the net collections. Wittman has provided three options for the continuation of the agreement with the City of Westminster. Staff was able to get a matched rate with Santa Ana, a much larger city, but with a seven-year term. The three options for renewal are:
1. 3-Year Contract + (2) 1-year extensions - 4.35% of net collections
2. 5-Year Contract + (2) 1-year extensions - 3.99% of net collections
3. 7-Year Contract - 3.75% of net collections
The following table uses the total ambulance receipts from FY 2023-24 to illustrate the savings from the current contract at the different proposals.
|
|
2023/24 Receipts |
Rate |
Contract Cost |
Savings from Current |
|
Current Agreement |
5,407,006 |
5.35% |
289,275 |
|
|
3-Year +2 option years |
5,407,006 |
4.35% |
235,205 |
(54,070) |
|
5-Year +2 option years |
5,407,006 |
3.99% |
215,740 |
(73,535) |
|
7-Year |
5,407,006 |
3.75% |
202,763 |
(86,512) |
Staff recommends continuing the professional services agreement with Witman for a new term of seven years to realize the largest savings from the three proposals. The lowest rate would be locked in for seven years and the agreement contains cancellation language with 90-day notice.
FISCAL IMPACT
A seven-year agreement with Wittman Enterprises, LLC would save $86,512 from the current agreement. Funds are included in the proposed budget for FY 2025-26 budgeted in account 44000-43090 ambulance program contractual. No additional appropriation is necessary.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Approving the agreement with Wittman Enterprises, LLC will create continuity of services with billing for emergency ambulance transportation services which provides $5.4 million in revenue to the general fund annual. The new agreement has a reduced rate of 3.75% of net collections and would save the city $86 thousand annually.
ATTACHMENTS
1. Agreement for Ambulance Billing Services with Wittman Enterprises, LLC
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager