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HomeMy WebLinkAbout10-415DECEMBER 28, 2010 10 -415 RESOLUTION (CARRIED 6 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: ACCEPT PROPOSAL OF LIFEQUEST FOR AMBULANCE BILLING AND COLLECTION SERVICES INITIATED BY: FIRE DEPARTMENT WHEREAS, the City of Oshkosh requested proposals for ambulance billing and collection services for the City of Oshkosh; and WHEREAS, Lifequest best met the general services standards and performance criteria being sought. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized and directed to enter into an appropriate agreement for Ambulance Billing and Collection Services with: Lifequest N2930 State Road 22 Wautoma, WI 54982 (See attached Proposal) BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to execute such agreement for the purpose of same. Funds for this purpose is hereby appropriated from: Acct. No. 100- 0240 - 6401 -00000 —Contractual Services —Ambulance Billing City of Oshkosh 0 Fire Department 101 Court Street Oshkosh, WI 54901 OlHKO.IH (920) 236 -5240 (920) 236 -5295 FAX ON THE WATER MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Tim Franz, Fire Chief DATE: December 20, 2010 RE: Award Contract to Lifequest for Ambulance Billing and Collection Services BACKGROUND With the pending expiration of the current ambulance billing contract, a request for quotes (RFQ) was prepared by the Fire Department to solicit a new ambulance billing and collection service provider. The Purchasing Division distributed the RFQ to our current provider as well as to other firms who had previously shown interest in providing this service to the City of Oshkosh. In addition, the RFQ was posted online for any other interested parties. ANALYSIS The City received three proposals that were reviewed by the Finance Director, Fire Chief and Battalion Chief of Emergency Medical Services, with two of the three proposals meeting the general requirements of the request. One of the proposals stood out above the others in both quality and fees for this critical service. Lifequest Services of Wautoma, WI, offered the lowest fee structure, coming in at 5.49% of net payments and 28% for bills that require comprehensive collections efforts. The other qualified provider offered a quote of 6.5% of net payments and 33% for collections. In addition, Lifequest offers improved customer service with extended business hours into the evenings and on Saturday mornings, answering all phone calls during business hours. They also have a strong track record of success and positive customer service. FISCAL IMPACT Our current fee for billing services is 5.75% of net payments and collections. When comparing this with the rates of the proposed provider, at 5.49 %, we believe that we will realize an increase in revenues due to Lifequest's comprehensive processes and procedures in ambulance billing and collection services. RECCOMENDATION Staff recommends that the Council enter into a contract with Lifequest Services for ambulance billing and collection services. In addition to providing the lowest rates, they also offer the highest service levels in many of the required areas, and, in many cases, exceed our requirements. Respectfully Submitted, Approved: Timothy Franz City Manager Fire Chief f TIPQ ' - 11 2: . 1 `Services Experience LifeQuest Services Extreme Collection Rates LifeQuest 911 Pro Billing Package COSTS / FEE PROPOSAL InitialStartup Costs .................................................. .............................No Charge On -site Training ...................................................... .............................No Charge LEADERS............................................................. .............................No Charge COST OF SERVICES LifeQuest 911 Pro Billing (Phase I Billing) Cost based on Amount Collected ....................... ............................... ...........................5.49 /o Collections Services (Phase II) Cost based on Amount Collected ...................... ............................... ...........................5.49 /o Collections Services (Phase III) Cost based on Amount Collected ..................................................... .............................28 /o (In TRIP participating companies, typically all but 5.02% of the total cash collected is received in Phase I and Phase II) These processes will yield an approximate 85 -90% collection rate provided LifeQuest 911 Pro Billing receives timely, complete and accurate reporting from the City of Oshkosh.