HomeMy WebLinkAboutResolution 1999-064
RESOLUTION NO. 99-64
WHEREAS, the Director of Finance requested proposals for a contract for billing
and collection of emergency medical service fees; and
WHEREAS, five proposals were received and reviewed by the Finance Department;
and
WHEREAS, the lowest and best 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 13th day of September, 1999.
APPROVED:
ATTEST:
l}!áI/Vix,i~
Patricia Hutson, City Secretary
APPROV§D-, TO F~~ /?D LEGALITY:
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City of North Richland Hills
Service Contract for
Emergency Medical Services
Billing and Collection Service
CÖfPY
This contract is made and entered by and between Southwest General Services, Inc.,
hereinafter referred to as "Contractor", and the City of North Richland Hills, Texas, 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, 1999 through September 30,2002. 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 sixty-(60) 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 may 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. 99-866 and the Contractor's Proposal in
response. The Proposal No. 99-866, the response of Contractor, Attachments "A"
and "B" are all made a part of the contract.
TERM Of_C.o_NTRAC1.;. TERMINATION; SCOPE OF WQR.K, - CONTINUED
In the event there exists a conf1ìct among these documents, they shall control in the following
order:
(a) This written Service Contract;
(b) Vendors Response:
(c) Proposal No. 99-866
Contractor acknowledges and agrees that the provision of ambulance 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.
City agrees to pay Contractor fees based on the Vendors Response attached as Exhibit "B".
It is understood that ambulance services payments, for a number of valid causes, may be
delayed for up to one hundred fifty (150) days from date of service. In that instance,
Contractor collections will be based upon collections received as a result of billings during the
contract period. This determination will extend for a period of one hundred fifty (150) days
after the end of the initial period and apply only to billings generated within the contract
period.
Contractor will also assume collection activity for all active EMS accounts receivable on the
contract commencement date.
City shall pay contractor within thirty (30) days following receipt of invoice. Contractor agrees
that City shall not be invoiced more frequently than once every thirty days.
2
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 or prepared by or for the City of North Richland Hills, shall be returned
within five (5) days to the City.
IV.
ADDITIONAL DUTIES OF CONTRACTOR AND CITY
In addition to the duties provided in this Contract the parties shall abide by the following terms
and conditions:
(A) REMIT FEES TO CITY
Contractor agrees that all fees collected or paid shall be directly remitted to the City.
All instructions for payment issued by Contractor shall indicate that payment shall be
made to the City. In no event shall Contractor designate, imply or infer that payment
should be made in any other manner for collections under this Contract.
(B) TELEPHONE SERVICE
Contractor agrees to have in operation within three (3) days after the execution of this
Contract, a toll free phone number, which shall be without cost or expense to the
caller, Telephone to be answered during regular business hours by an employee of
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
statements sent by Contractor in its efforts of collection and billing under this
agreement.
3
(C) 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, will not be reimbursed by the City.
V.
TIME OF COMPLETION
Contractor agrees and covenants that all work thereunder shall be completed in accordance
with the schedule set forth in the Notice to Bidders.
VI.
PROTECTION AGAINST ACCIDENT TO EMPLOYEES 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.
VII.
RECORDS
Contractor shall keep available for inspection and copying by City, records, whether written or
electronically generated and stored, which sufficiently and adequately contain all bills and
collections, accounts, 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.
4
VIII.
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
the work, including those related to debt collection. Contractor shall indemnify and save
harmless the City against any claim arising from the violation of 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.
IX.
ASSIGNMENT AND SUBLETTING
The Contractor agrees to retain control and to give full attention to the fulfillment of this
Contract, that this Contract will not be assigned without the prior written consent of the City,
and that no part or feature of the work will be sublet to anyone objectionable to the City's
Director of Finance. 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.
X.
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), claims, 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.
5
XI.
INSURANCE AND CERTIÐ.Çt\ TES OF INSURANCE
Contractor shall procure and maintain, for the duration of the contract, insurance as set forth
in the Notice to Bidders.
XII.
MISCELLANEO~
(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
the City of North Richland Hills in open meeting 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) INTERPRET CONTRACT FAIRLY
Although this Agreement is drafted by the City, should any part be in dispute, the
parties agree that the Agreement shall not be construed more favorably for either
party.
6
M 15.C.E_LL._';N EQU S -co NTI N U E D
(D) 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.
(E) 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
Contractor
Larry Koonce
Director of Finance
P.O. Box 820609
North Richland Hills, Texas 76182-0609
817/581-5535
Scott Fothergill
Southwest General Services
1201 Elm Street
Suite 5010 Renaissance Tower
Dallas, Texas, 75270-2016
(F) SEVERABILITY
The provisions of this Agreement are severable. If any paragraph, section,
subdivision, sentence, clause, 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.
7
(G) ENTIRE CONTRACT
It is understood and agreed the entire agreement of the parties is contained herein and
that this agreement supersedes all oral agreements and negotiations 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
BVµ7d:¡r-
DATE:
! b-II-t1Cj
TITLE: CJ.../t.( O(JCo-f,'CtI ') O.f(,'(<:./
I
DATE: -10- I - q1
ATTEST:
ATTEST:
("?MuMá~
Patricia Hutson, City Secretary
r ~ li ~
1Jw~ tAMCv JM~ - .5ii¡JP!,,1C>{
-----.
8
ATTACHMENT A - Proposal #99-866
1. "Gross Amount Billed" - Is defined as transports received from the City
of North Rlchland Hills Fire Department on a regular basis excluding
transports received with "Unknown Names" and/or "Unknown Addresses"
Also excluded from Gross Amount Billed will be transports/accounts
written-off or discontinued per request by a designated City of North
Rlchland Hills' employee
. Note: Southwest General Services will make every attempt to locate
patient information for all transports received,
2. "Performance Guarantee" - Southwest General Services will guarantee
a Gross Collection Rate of 56% to be measured by the end of a 6-month
collection process.
3, "Penalty Clause" - If Southwest General Services does not satisfy its
proposed Guaranteed Gross Collection Rate of 56% after the end of a 6-
month collection process, a penalty of 25% will be assessed to the current
month's commission,
4. "Exception Rule" - If Medicare Part B places the City of North Richland
Hills on "Pre-Payment Review", this will delay Medicare Part B payments
for up to 6 months. Therefore, the 6-month measurement period to
measure performance would be extended by an additional 6 months.
City of North Richland Hills
Larry Cunningham
City Manager
~,t:- '(;;vro'Jf·
Southwest General Services, Inc.
Scott Fothergill
COO & Director of Billing and Collections
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CLAIMS SUBMISSION AGREEMENT
This agreement is made by and between the City of North Richland Hills, herein called "City" and
Southwest General Services, Inc., herein called "Agent".
The City of North Richland Hills resolved on September 13, 1999, to enter into an agreement with
Southwest General Services, Inc, effective October 1, 1999, for the billing and collection of
emergency ambulance services provided by the City of North Richland Hills Fire Department,
Therefore:
1. Agent has authority to submit claims on behalf of the City to Medicare, Medicaid, other
insurance carriers, and any other payer source.
2, Agent will submit claims to payers in the specific format as required by the payer source
and to research and correct any and all claim discrepancies caused by it.
3, That all original source documents and source records (i.e" medical/financial records
and/or billing statements) will be maintained and that every claim and billing can be
associated and identified with a source document.
4. Agent will establish and maintain procedures and controls so that information concerning
Medicare beneficiaries and Medicaid recipients. or any information obtained from the
Department of Health and Human Services or its agents, shall not be used by agents,
officers or employees of the City or the Agent, except as provided in Section 1106 of the
Social Security Act, as amended: and the Federal Regulations prescribed there under.
5. Agent will not disclose any information concerning a Medicare beneficiary to any person
or orga.Dizatìon other than the Secretary of Health and Human Services, his or her
designees or agents of the Medicare Carrier without the express written permission of the
Medicare beneficiary or his or her lawful representatives.
6, That the City, as provider of services, and Agent, as submitter of claims for payment,
accept the responsibility for all claims submitted to Medicare / Medicaid and will ensure
that all such claims conform to all appropriate rules and regulations.
This agreement shall be valid for the period of the contract between the City and the Agent.
Signed and dated this 1 sl day of October 1999 by:
~~~
City of North chland Hills