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Memo Resolution EMS Accounts Receivables Adj.Agenda No. 4 CITY COUNCIL MEMORANDUM/RESOLUTION City Council Meeting: March 20, 2012 Department: EMS Subject: EMS Accounts Receivables Adjustments BACKGROUND: Per City Policy, EMS is to bring our contractual and accounts receivables adjustments before City Council for proper accounting procedures to be accomplished by the Finance Department. FISCAL IMPACT Traditionally, These adjustments have been presented in three segments, but after the City's audit was approved after Fiscal Year 2010, Finance and EMS have worked to move Contractual Allowables, the funds we cannot collect by law due to accepting payments from governmental health care agencies (Medicare, Medicaid, etc), to the revenue calculations through journal entries. As a result, only those accounts that our self -pay patients do not pay on will be brought to Council. The first adjustments we are requesting Council to make are on private pay accounts that have been referred to our collection agency (MVBA). These represent accounts that were sent to MVBA from October 1, 2011 through January 31, 2012. For this period we are requesting to remove $226,956.83 from our accounts receivables account. These funds will be continued to be pursued and if recovered will be accounted for as miscellaneous revenue. The second adjustment comes from our internal billing procedures. Some of these are negotiated charge reductions, write -offs of co -pays for citizens in the cities we serve, bills of homeless patients who we cannot locate any longer, and bills of deceased patients who do not have insurance or estates from which to recover EMS charges for service. The amount of this category is $14,071.02. This period's total adjustments are $241,027.85. This is the first Account Receivable Adjustment of Fiscal Year 2012. RECOMMENDATION Staff recommends Council approval of these Contractual and Account Receivable Adjustments. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ: That the above stated EMS recommends City Council approve the Account Receivable Adjustments of $241,027.85. Memo - Resolution.doc City Council Memorandum Page 2 PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this 20'' day of March, 2012, at which meeting a quorum was present, held in accordance with the provisions of the Texas Government Code, §551.001 et seq., as amended. APPROVE 0 Hal-Baldwin, Mayor ATTEST: Brenda Dennis, City Secretary Memo- Resolution.doc