CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:title
Approve the award of RFP 22-071, EMS & Non-EMS Billing Services, to Ambulance Billing Services, for a three-year term
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DEPARTMENT: Fire Department
SUBMITTED BY: Mark J. Puknaitis, Chief
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Per the Naperville Municipal Code Section 1-8B-4, the Fire Department is responsible for maintaining and providing ambulance (EMS) and other emergency services (non-EMS) within the City, and within such additional areas which are to be served under contract. The Code also establishes the amounts to charge residents and non-residents for responding with City resources.
The City does not have the staffing necessary to perform comprehensive EMS billing and collection services in either the Fire or Finance department, therefore the services are outsourced to a qualified company. By outsourcing, the City ensures dedicated collection efforts and that all current on laws and industry trends related to Medicaid/Medicare, private insurance, and other applicable topics are follwed.
The City also outsources billing and collection of certain non-EMS services provided by the Fire Department. These include specialized responses such as motor vehicle accidents and vehicle fires. Currently, EMS and non-EMS billing and collection services are provided by separate vendors and under two distinct contracts.
In March 2022, the Fire Department issued RFP 22-071, EMS and Non-EMS Billing Services, to contract with an experienced and qualified firm that provides a turn-key solution in support of Fire Department billing and collection services and consolidate the two contracts.
DISCUSSION:
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Advertisement Date: |
03/09/2022 |
Notices Sent: |
61 |
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Opening Date: |
03/30/2022 |
Planholders: |
17 |
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Proposals Received: |
6 |
Proposals were received from the following vendors:
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Paramedic Services of Illinois |
Change Healthcare |
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Lifequest |
Andres Medical Billing |
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Ambulance Medical Billing |
Paramedic Billing Services |
A selection team comprised of staff from the Fire Department and Finance Department evaluated the proposals, which were scored based upon the criteria set forth in the RFP:
1. Capability, Capacity and Qualifications of the Firm (25%)
2. Suitability and Quality of the Approach/Methodology (35%)
3. Milestones and Deliverables (40%)
After reviewing and scoring the proposals, the selection committee invited the top four vendors, Lifequest, Paramedic Billing Services, Ambulance Medical Billing and Andres Medical Billing, to attend interviews and conduct demonstrations. Following the completion of the interviews, the selection committee rescored the vendors. The pricing proposed by the vendors was not revealed to the evaluation team until after the interviews were completed. The vendor with the highest qualification score, Ambulance Medical Billing, is recommended for award. The table below provides a summary of the final qualification scores:
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Vendor |
Qualification Score |
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Ambulance Medical Billing |
86.45 |
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Lifequest |
83.35 |
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Andres Medical Billing |
78.45 |
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Paramedic Billing Services |
64.55 |
Ambulance Medical Billing (AMB) proposed the most comprehensive suite of services, offered a highly competitive collection rate, and proposed fees below what the City currently pays for these services. Fees are based on a percentage of the amount collected by the firm as noted in the table below.
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Current Rate |
Proposed Rate |
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EMS |
3.1% |
3.0% |
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Non-EMS |
20.0% |
3.0% |
In addition to reduced rates, AMB offers daily deposits and reports, as well as an established statistical dashboard providing the department with access to valuable information. AMB has a staff of more than 200 employees, with a team of 20 dedicated to Illinois municipal clients. The firm is very knowledgeable in Ground Emergency Medical Transport (GEMT) processes, guidelines and regulations.
The term of the contract is three years from July 1, 2022 to June 30, 2025 with up to two, one-year options to extend.
FISCAL IMPACT:
CIP#: N/A
EMS and non-EMS billing services are expensed to the account listed below for which a total of $245,000 is budgeted for 2022. Fees are assessed as a percentage of the amount billed and are offset by the revenues collected. Estimated revenues for 2022 are $6.0 million for EMS services and $100,000 for non-EMS services. Based on those estimates, the cost for billing and collection services under this agreement would be $23,000 less than what is paid under the current contract rates.
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Account Number |
Fund Description |
Total Budget Amount |
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22101100-532316 |
General Fund |
$245,000 |