Item 10EProfessional services agreement with Intermedix
June 20, 2006
Professional Services Agreement
City currently staffs 2 mobile intensive care unit (MICU);
12 personnel staffing those ambulances and 1 person to cover during vacation, sick and training leave;
During calendar year 2005 Fire Services responded to 816 EMS calls resulting in the transport of 551 patients (430 non-residents);
Average cost per EMS run is $1,102.69;
Average cost per transport is $1,628.96;
Professional Services Agreement
Finance staff currently spends 4 to 6 hours per month ($185) on ambulance fee collections and insurance filing with an estimated 40-50% collection rate ($68,500);
The city does not accept Medicare assignment;
Professional Services Agreement
Intermedix would be compensated as follows:
12% of the total amount collected on each account;
13.8% of the total amount collected if payment is made by a credit card;
Professional Services Agreement
Approval of the agreement would require a fee amendment to increase our transport fee from $300 to $855;
Current fee lowest among 12 cities with the highest fee of $1,115 charged for emergency transports;
Keller, Bedford, Colleyville, Euless, and Richland Hills fee currently $855;
The proposed fee would increase our recovery of cost from 18.4% to 52.5%;
Professional Services Agreement
Transport revenue would increase (net of Intermedix fees and excluding the increase in Medicare collections)
$133,339 assuming 55% collection rate;
$163,692 assuming 65% collection rate;
Intermedix expertise in Medicare would increase our revenue and increase our level of service to residents on Medicare;
Intermedix has indicated that collection rates in some instances exceed 65%;
Initial term of agreement is for 1 year
QUESTIONS?