HomeMy WebLinkAboutResolution 2004-066
RESOLUTION NO. 2004-066
WHEREAS, the Director of Finance requested proposals for a contract for billing and
collection of emergency medical service fees; and
WHEREAS, three proposals were received and reviewed by a committee of five,
consisting of, three members from the Finance department, the Assistant Fire Chief, and the
Managing Director of Administrative/Fiscal Services.
WHEREAS, the best and most qualified proposal was received from Southwest
General Services, Inc., which the Council so finds.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS, that:
1.
The City Manager be, and is hereby authorized to execute the attached contract for billing
and collection of emergency medical service fees with Southwest General Services, Inc., as
the act and deed of the City.
PASSED AND APPROVED this 2ih day of September 200
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Patricia Hutson, City Secretary
APPROVED AS TO CONTENT:
City of North Richland Hills
Service Contract for Emergency Medical Services
Billing and Collection Service
The contract is entered into and made by and between Southwest General Services (SGS)
hereinafter referred to as "Contractor", and the City of North Richland Hills, hereinafter
referred to as "City", to be effective as hereinafter provided. For and in consideration of the
covenants and agreements contained herein, and for the mutual benefits to be obtained
hereby, the parties agree as follows:
I. Term of Contract;"'Termination; Scope of Work
(A) The initial term of this contract shall be for a period of thirty-six (36) months, beginning
October 1, 2004 through September 30, 2007. However, the City shall have the right
and option to renew for two (2) one (1) year terms under the same terms and
conditions by giving written notice to Contractor of City's election to so extend the
term. Such notice shall be given not more than ninety (90) nor fewer than thirty (30)
days prior to the expiration of the said initial term.
(B) The parties further agree that either party may cancel and terminate this contract,
without cause, upon thirty (30) days written notice to the other party,
(C) During the initial term, or any extension term, Contractor shall provide such labor,
supervision, equipment and materials as ma" be necessary for emergency medical
services billing and collection services for the City of North Richland Hills, including
emergency medical services account management, rate adjudication for Medicare and
Medicaid, and electronic claim filing for Medicare and Medicaid and insurance
companies. Such services shall be performed in accordance with the terms and
conditions of the City's Proposal No. 04-1190 and the Contractor's response.
(D) Contract shall include the Electronic Patient Care Reporting system with the Medusa
Lifenet EMS software. The system will include five (5) laptop computers, five (5)
docking stations, five (5) printers, software and licensing, training, support and
maintenance.
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At the end of the initial three year contract term, City will own all equipment and
software listed above and all data stored on SGS servers. In the event another vendor
is chosen at the end of the contract term, all data will be transferred to City
electron ¡cally.
The Proposal No. 04-1190 and the response of the Contractor are all made a part of
the contract. In the event a conflict exists among these documents, they shall control
in the following order:
1) This written Service Contract;
2) Vendor's Response;
3) Proposal No. 04-1190
Contractor acknowledges and agrees that the provision of ambulanoe service mayor
may not change over the term of this agreement. The rates charged may change, the
service may change, and/or the service may cease to be a City function, The parties
agree that, if the service is stopped, neither party will have any further obligation under
this contract.
II. Compensation and Procedures
(A) Fees will be calculated as a percentage of monthly collections. City and Contractor
mutually agree that a fee of 6% of net collections, current and/or delinquent, shall be in
effect until the EPCR system is 100% operational in a live environment, as approved
through a letter of acceptance by the No'1h Richland Hills Information Services
Department. Contractor guarantees a collection rate percentage of 61 % measured at
the end of a six-month collection period, to begin the month following the transport
month, The collection rate shall be based on the original billed amount less any
amounts disallowed by Medicare and Medicaid as well as billing errors. The
disallowed amount does not include the patient co-pay for Medicare and Medicaid. If
Contractor does not reach the guaranteed percentage by the end of the sixth month, a
25% penalty shall be imposed on the current month's collection fee.
(B) Once the EPCR is accepted as 100% operational, City and Contractor agree that a fee
of 9% of net collections, current and/or delinquent, shall be in effect for a period of 36
months following the date of acceptance, and is contingent upon the execution of the
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first one-year extension as provided for in the terms of the contract. Immediately
following this 36 month period at a fee of 9%, a fee of 7,5% of net collections, current
an~/or delinquent, shall remain in effect for the remainder of that period; and also if
executed, shall continue throughout the term of the second one-year extension.
Contractor agrees that the guaranteed collection rate as stated in Section A above, as
well as the procedures for imposing a 25% penalty on the current month's collections
fee, shall remain in effect.
If the City terminates the contract prior to the end of the 36 month period following the
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acceptance of the EPCR, then the City shall pay a pro-rata share of the cost of the
EPCR to the Contractor for the remaining months of the 36 month period. City and
Contractor agree the cost of the EPCR system is $91,500.
Upon expiration of the contract, the City will continue to pay Contractor for amounts
collected within 180 days of the expiration date for billings initiated during the contract
period, Any outstanding accounts at the end of the 180-day collection period shall be
turned over to the City or, at the City's request, to the City's delinquent account
collection contractor.
III. Accounts are Property of City
All accounts receivable, including documentation of any kind furnished by the City, shall at all
times remain the property of the City. In the event of termination of this contract for any
reason or expiration thereof; account receivables and all other documentation which is
generated, supplied for, prepared by or for the City of North Richland Hills, shall be returned
within thirty (30) days to the City.
IV. Additional Duties of Contractor and City
(A) Telephone Service
Contractor agrees to have in operation within three (3) days after the execution of this
Contract, a toll fee phone number, which shall be without cost or expense to the caller.
Telephone to be answered during regular business hours by an employee of
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Contractor who will answer any questions regarding the bills or other services provided
by Contractor under this agreement. The phone number shall be published on all
sta~tements sent by Contractor in its efforts of collection and billing under this
agreement.
(B) City to Provide Records
City agrees that it shall provide the Emergency Medical Service reports to Contractor
to allow it to fulfill its duties under this Agreement. The reports will be furnished in
ASCII file format, which can be downloaded into the Contractor's billing program or
printed by the Contractor for manual input into the Contractor's billing system. Any
programming costs incurred by the Contractor in relation to the downloading of billing
information are solely the responsibility of the Contractor and will not be reimbursed by
the City,
V. Protection Aaainst Accident to Emplovees and the Public
The Contractor shall at all times exercise reasonable precautions for the safety of employees
and others on or near the work and shall comply with all applicable provisions of Federal,
State, and Municipal safety laws. The safety precautions actually taken and the adequacy
thereof shall be the sole responsibility of the Contractor,
VI. Records
Any records Contractor does not turn over to the C~ty shall be kept available for inspection
and copying by City, whether written or electronically generated and stored, which sufficiently
and adequately contain all billing statement, collection activity, account activity, disposition,
etc., relative to this Contract. These records shall be kept from the inception of the contract
and for two years following termination or expiration of the Contract. Contractor will be
responsible for making electronic back-ups on a daily basis and provide a copy at an offsite
location. Accounts Receivable records retention shall be FE of date of receipt plus three
years,
VII. Laws and Ordinances
The Contractor shall at all times observe and comply with all Federal, State, and local laws,
ordinances, regulations, and policies of the City, which in any manner affect the Contractor or
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the work, including those related to debt collection. Contractor shall indemnify and save
harmless the City, its officers, employees, and agents against any claim arising from the
violation 9f any such laws, ordinances, and regulations whether by the Contractor or his
employees in accordance with Article XII. If the Contractor performs any work knowing it to
be contrary to such law, ordinances, rules or regulations, and without such notice to the City,
Contractor shall bear all costs arising therefrom.
VIII. Assianment and Sublettina
The Contractor agrees to retain control and to give full attention to the fulfillment of this
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Contract, that this Contract will not be assigned without the prior written consent of the City
Manager of North Richland Hills, and that no part or feature of the work except the "Electronic
Patient Care Reporting" (EPCR) system will be sublet to anyone objectionable to the City
Manager. Both parties agree that the contractor will subcontract the EPCR system as
referenced in the Contractor's proposal. The Contractor further agrees that the subletting of
any portion or feature of the work, or materials required in the performance of this
Agreement, shall not relieve the Contractor from his obligations to the City as provided by this
Agreement.
IX. Independent Contractor; Indemnification
The Contractor is and shall be an independent Contractor and shall not, with respect to its
acts or omissions, be deemed an agent or employee of the City. The Contractor shall
defend, indemnify and hold harmless the City and its officers, agents, and employees from
and against all damages, injuries (including death), ~Iaims, property damages (including loss
of use), losses, demands, suits, judgments and costs, including reasonable attorney's fees
and expenses, in any way arising out of or resulting from the performance of the work or
caused by the negligent act or omission of the Contractor, his officers, agents, employees,
subcontractors, licenses, or invitees.
X. Insurance and Insurance Certificate
Contractor shall procure and maintain, for the duration of the contract, insurance as set forth
in the Request for Proposal.
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XI. Miscellaneous
(A) Binding of Parties
The undersigned represents and warrants that he or she is the duly authorized
representative of the Contractor and is authorized to execute this Contract which has
been approved and accepted by the Contractor.
This Agreement shall not be considered fully executed or binding on the City of North
Richland Hills until the same shall have been executed by Contractor, the Mayor or his
designate, and the City Secretary, and approved and accepted by the City Council of
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the City of North Richland Hills in open m~eting as required by law.
This Contract shall be binding upon the parties hereto, and their successors and
assigns.
(B) Paragraph Headings
The paragraph headings contained herein are for convenience only and are not
intended to define or limit the Scope of any provisions in this Agreement.
(C) Venue/Governing Law
In the event of breach of this Contract, venue for all causes of action shall be instituted
and maintained in Tarrant County, Texas. The parties agree that the Laws of the
State of Texas shall apply to the interpretation, validity and enforcement of this
Agreement.
(D) Notice
Except as otherwise provided in this Contract, all notices required or permitted shall be
in writing and be deemed to be delivered when received at the address provided
below. Each party shall notify the other in writing upon change of address,
City of North Richland Hills Southwest General Services
Larry Koonce Scott Fothergill
Director of Finance Chief Operating Officer
P.O, BOX 820609 9441 LBJ Frwy., Suite 600
North Rich/and Hills, Texas 76182- 0609 Dallas, TX 75243
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(E) Severability
The provisions of this Agreement are severable. If any paragraph, section,
subdivision, sentence, cause, or phrase of this agreement is for any reason held to be
contrary to the law or contrary to any rule or regulation having the force and effect of
the law, such decisions shall not affect the remaining portions of the Agreement.
However, upon the occurrence of such event, either party may terminate this
agreement by giving the other party thirty (30) days written notice.
(F) Entire Contract
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It is understood and agreed the entire agr~ement of the parties is contained herein and
that this agreement supersedes all oral agreements and negotiati.~.ms between the
parties relating to the subject matter as well as any previous agreements presently in
effect between the parties relating to the subject matter hereof.
IN WITNESS WHEREOF, the parties have executed the Contract in the year and on
the day set forth below.
CITY OF NORTH RICHLAND HILLS
SOUTHWEST GENERAL SERVICES
By:Ú~:I
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TITLE: C ()O
DATE: 12/7/ of
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George Staples, A torney for the City
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