R-1765 - 12/11/2018 - FIRE DEPARTMENT - Resolutions Supporting DocumentsLast saved by Windows User C:\Users\bliss\Desktop\Agenda Memo for Ambulance Billing Services.doc
Last printed 12/5/2018 1:26 PM
AGENDA ITEM
Regular Board of Trustees Meeting
December 11, 2018
SUBJECT: Award of Contract – Ambulance Billing Services
FROM: Barry Liss, Fire Chief
BUDGET SOURCE/BUDGET IMPACT: Program 221 - 73150
RECOMMENDED MOTION: I move that the Village Board award a Professional Service
Agreement to the company with the best overall value, Andres Medical Billing, Ltd.,
Arlington Heights, Illinois, for Ambulance Billing Services for a period of five (5) years
with three (3) additional option years to renew, beginning January 1, 2019. Additionally, I
move that the Village Board approve Resolution 2018-FD-PSI-AG-R-1765.
Background/History:
In maintaining and assuring the efficiency, appropriateness and cost effectiveness offered
through our current third party billing provider, the Village Board instructed staff to prepare and
advertise a Request for Proposals (RFP) seeking a qualified third party vendor to provide
ambulance billing services.
On September 24, 2018, an RFP was posted on the Village website and sent to six (6) companies
for Ambulance Billing Services. On October 17, 2018, the Village received seven (7) proposals
and fee schedule as follows:
Andres Medical Billing 3.42%
Lifequest Services 4%
Paramedic Billing Services 4%
PSI 4%
Medical Reimbursement Services, LLC 5%
RPM Billing 6.5%
Health Services Integration 8%
Village staff evaluated the submitted proposals based on their overall ability to provide the
desired service at the most affordable cost.
ITEM 8.C.4
Last saved by Windows User C:\Users\bliss\Desktop\Agenda Memo for Ambulance Billing Services.doc
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Three (3) of the seven (7) proposals clearly met the established criteria outlined within the
specifications in the RFP, and were further evaluated against each other. The following chart
represents those findings.
Andres PSI PBS
Years in Business 25 17 28
References Provided Yes Yes Yes
Software They Use Image Trend Zoll FH/Zoll/IT
Account Manager Yes Yes Yes
3-Day Processing Yes Yes Yes
HIPAA Compliant Yes Yes Yes
Handling of Complaints OK OK OK
Monthly Reports OK OK OK
Statistical Analysis & Reports OK OK OK
Tracking OK OK OK
24-hour Access OK OK OK
Postage included included included
Location (Local & distant) Local Local Local
Collection % Fee 25% 25% 21%
Fees 3.42% 4% 5%
Other
Current Provider
for 17 yrs.
0% 1st 6
months
As a result of those findings, it was determined that our existing vendor, Andres Medical Billing,
Ltd. was the front runner in providing the required and desired services at the most affordable
cost.
Since 2002, the Village of Oak Brook has successfully utilized Andres Medical Billing services
as its third party vendor in providing ambulance billing collection services including, but not
limited to, financial reporting and analytical services, for ambulance services rendered by the
Oak Brook Fire Department and its paramedics for Advanced Life Support (ALS) and Basic Life
Support (BLS) incidents. The current services include complete management of the electronic
billing process from patient transport to account closure at a fee of 5%.
Recommendation:
That the Village Board award a Professional Service Agreement to the company with the best
overall value, Andres Medical Billing, Ltd., Arlington Heights, Illinois, for Ambulance Billing
Services for a period of five (5) years with three (3) additional option years to renew, beginning
January 1, 2019. Additionally, I move that the Village Board approve
Resolution 2018-FD-PSI-AG-R-1765.
RESOLUTION 2018-FD-PSI-AG -R-1765
A RESOLUTION APPROVING AND AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE VILLAGE OF OAK BROOK AND ANDRES MEDICAL BILLING, LTD. FOR
AMBULANCE BILLING SERVICES
WHEREAS, the Village of Oak Brook (“Village”) desires to engage a vendor to provide certain
ambulance billing services, all as more fully detailed in the Agreement attached as Exhibit A (collectively,
the “Services”); and
WHEREAS, the Village conducted the Request for Proposals process for the Services and received
7 proposals; and
WHEREAS, Andres Medical Billing, Ltd., (“Andres”) submitted the proposal with the best overall
value to provide the Services; and
WHEREAS, the Village and Andres desire to enter into and execute a professional services
agreement authorizing Andres to provide the Services (“Agreement”), which Agreement is attached as
Exhibit A; and
WHEREAS, the Village President and Trustees have determined that it is in the Village’s best
interests to enter into the Agreement with Andres;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of,
this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Approval of the Agreement. The President and Board of Trustees hereby approve
the Agreement by and between the Village and Andres in substantially the same form as Exhibit A, and in
a final form approved by the Village Attorney.
Section 3: Authorization and Execution of the Agreement. The Village Manager and Village
Clerk shall be, and hereby are, authorized to execute the Agreement after receipt of the Agreement fully
executed by Andres.
Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and
approval in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
Resolution 2018-FD-PSI-AG-R-1765
Agreement for
Ambulance Billing Services
2 of 3
APPROVED THIS ___ day of December, 2018
Gopal G. Lalmalani
Village President
PASSED THIS ___ day of December, 2018
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
Resolution 2018-FD-PSI-AG-R-1765
Agreement for
Ambulance Billing Services
3 of 3
EXHIBIT A
AGREEMENT
[ATTACHED]
4849-1989-8746, v. 1
REV=EW OF CONTRACTS
Awarded Contract Prlce:
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$20′000‐$500′000
$500′001‐寧1′000′000
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Date:/aイ ツー/Three (3) Orlglnals slgned by other pafty
Original provlded to staff member for other party
Original provided to Official Flles
Date/1nitlals
Date/1nitlals
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Village of oak Brook l Approved by 8oard orTrustees_ Date/initials:
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This Agreement is entered into as of 2018 between
the Village of Oak Brook, hereinafter referred to as Oak Brook and Andres Medical
Billing, Ltd., hereinafter referred to as AMB.
WHEREAS, Oak Brook has determined that it is in their best interest to retain the
services of an outside billing service to collect monies for services rendered by Oak
Brook.
WHEREAS, AMB does hereby hold itself as being ready and able to perform a billing
service program as described herein.
NOW, THEREFORE, in consideration of the aforementioned promises and mutual
covenants and promises stated herein, the parties hereby agree as follows:
1 . AMB shall provide an Accounts Receivable program within AMB's computer
billing system for the exclusive purpose of collections for Oak Brook.
AMB will enter into said computer billing system, any and all ambulance trips
received from Oak Brook. AMB shall abstract, from the documentation provided
by Oak Brook, all diagnosis and procedure information necessary to determine
the level and type of service provided, any billable diagnostic and therapeutic
procedures performed, any billable supplies and ancillary services rendered, and
the appropriate diagnosis codes to be billed for all ambulance run information
provided by AMB by the client for that purpose.
AMB will follow established billing industry guidelines, including those established
by State and Federal government programs, for ambulance services. Oak Brook
retains responsibility for providing accurate and complete documentation of
services provided. Oak Brook understands that AMB will code/bill only from the
documentation provided.
2. AMB shall provide electronic billing of Medicare, Medicaid, lnsurance claims,
including 3d party payors, when applicable. lt is the responsibility of Oak Brook to
inform AMB of any changes in the company's status that would affect billing.
3. AMB will invoice all patients as directed by Oak Brook, in accordance with State
and Federal programs.
Patient invoicing will be done on a billing form specific for Oak Brook.
lnvoicing/collection activities will be conducted on the following standard
schedule:
1st invoice
lnsurance request
Automated phone call
2d invoice 10 days after phone call
Final notice 20 days after 2nd invoice
Collections or W/O review 30 days after final notice
Bill schedules may vary based on parameters set by department.
Collection agency or write off if no results from above as pre-determined by Oak
Brook. lf Oak Brook decides to use a collection agency AMB, without charges,
shall provide Oak Brook or the collection agency with records of its billing efforts.
AMB will not receive any funds in the event the collection agency surceeds in
collecting part or all of the charges for services rendered by Oak Brook.
All monies received by AMB on behalf of Oak Brook will be posted to the
patients' accounts on a schedule set forth by Oak Brook. All checks will be made
payable to Oak Brook. lt is the responsibility of Oak Brook to notify AMB of any
payments and/or documents pertainang to billing received at Oak Brook relating
to the services heretofore described.
AMB will maintain an 800-phone line for the purpose of customer service. This
line will be staffed Monday through Friday from 8:30 am to 7:30 pm Central time.
AMB will promptly respond to all Oak Brooks'service recipient concerns related
to all billing practices conducted herein.
6. AMB will submit a monthly reports detailing the transports billed from the
previous month. lt is the responsibility of Oak Brook to verify these reports and
provide AMB with any missing data. All reports currently within the software of
AMB'S billing system will be provided to Oak Brook at no additional cost.
within 3 days of receipt
30 days after l"tinvoice
20 days after insurance request45
7. AMB shall recognize and comply with the right of authorized Oak Brook
representatives to review any and all payment records pursuant to claims and/or
collection procedures conducted herein. Oak Brook shall have the right to audit
such reports at reasonable times.
8. Oak Brook agrees to pay AMB in accordance with the following fee schedule for
the aforementioned services so long as this agreement has not been terminated.
a. AMB shall be paid a fee ol (3.42o/o) of all payments
collected.
b. Payments to AMB shall be based upon revenues received in the
preceding month. AMB will provide a monthly billing to Oak Brook
calculating amounts owed to AMB based upon the above stated
formula.
c. Failure to pay AMB within 30 days of the monthly bill may constitute
immediate termination of the contract and possible legal action at the cost
of Oak Brook.
9. lf Oak Brook determines it is in their best interest to use a collection agency, Oak
Brook will deal directly with the collection agency regarding their fees.
10. lt is expressly understood and agreed that AMB is an independent contractor
who shall at all times maintain insurance in force as herein provided and AMB
shall in all events defend and save and hold harmless Oak Brook from any and
all liabilities, obligations, debts, charges, or judgments arising from claims,
injuries or debts, charges, or judgments arising from injuries or property damage
claims attributable to the activities of AMB while engaged in the performance of
its duties under this Agreement.
11. lt is the sole determination of Oak Brook as to fees for services that will be
charged to its patients and/or facilities. lt is recommended such fees should be
based on fair market value.
12. This agreement shall be effective on the date hereof and shall remain in full force
and effect for a term of five (5) years. Thereafter, this Agreement may be
extended for successive one (1) year periods for a maximum of three (3) years,
at the Village's sole discretion, unless terminated as hereinafter set forth. All
terms and provisions of this Agreement shall continue in full force and effect
unless otherwise modified. Either party may terminate this agreement at any time
by giving the other party ninety (90) days written notice. Notwithstanding the
aforementioned, this agreement shall be subject to immediate termination by Oak
Brook if AMB fails to maintain insurance as in part 13.
13. AMB maintains General Liability $1 ,000,000 per occurrence / $2,000,000
aggregate; Commercial Auto w/ hired non-owned coverage $1 ,000,000; Workers
Compensation $500,000/$500,000/$500,000; Professional Liability of
$1,000,000i Employment Practices Liability $250,000
14
AMB shall, while this Agreement is in effect, provide Oak Brook with Certificates
of lnsurance showing the coverage provided for above and the general liability
policy shall name the Village of Oak Brook, its officers, employees and agents as
an additional insured. The Certificate of lnsurance shall indicate that the
insurance cannot be canceled, suspended or reduced in amount or coverage
without at least 30 days' prior written notice to Oak Brook.
lf this contract is terminated prior to its completion, Oak Brook allows AMB to
continue collections efforts for a period of 6 months following the contract
termination, unless other arrangements have been agreed to by both parties in
writing. Oak Brook understands that they will be responsible to pay AMB their
commission on their collections during this time period in accordance with section
8 (c).
Proper notice may be given by certified or registered mail to:
Patrick J. Mannix
Chief Executive Officer
Andres Medical Billing, Ltd.
3223 N. Wilke Road
Arlington Heights, lL 60004
OR TO:
At termination of the Agreement it is the responsibility of AMB to return to Oak
Brook any and all records and documents submitted to AMB, except as required
by Federal Law.
lN WITNESS WHEREOF, the Responsible Party of Oak Brook and an Authorized Agent
of AMB have executed this agreement.
V:LLAGE OF OAK BR00K
BY:
ANDRES MEDICAL B:LL:NG,LTD.
BY:
DATE:DATE: