Memo Resolution EMS bad Debt and Contractual Allowable Write- Off'sAgenda No. 3
CITY COUNCIL MEMORANDUM /RESOLUTION
City Council Meeting: June 8, 2010
Department:
Subject:
BACKGROUND:
EMS
EMS Bad Debt and Contractual Allowable
Write -Offs
Per City Policy, EMS is to bring uncollectible debt and non - collectable contractual allowables to City
Council throughout the year. For uncollectible debt, we are to write the debt off after 180 days of non-
payment.
FISCAL IMPACT
Our write off request is presented in three segments. First are the accounts that have been referred to our
collection agencies. These represent accounts sent to MVBA from August 1, 2009 through November 30,
2009. For this period we are requesting to write -off $738,325.42 in collection accounts.
The second item to be written off 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. The
amount of this category is $30,753.48.
Lastly, Contractual allowables represent the funds we cannot collect by law due to accepting assignment
of Medicare, Medicaid and other government payments. This amount represents the difference between
what we have charged per our usual and customary charges and what we have been paid by
Medicare/Medicaid. The amount of these automatic write -offs is $494,431.15.
This second write -off of FY 2010 totals $1,263,510.05. Our anticipated budgeted write -offs for this Fiscal
Year is $2,856,819 of total Bad Debt Expenses and if approved, this request will bring our actual write -
offs to $2,561,999.63 due to larger than expected bad debt expenses.
RECOMMENDATION
Staff recommends Council approval of the Interlocal Agreement.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ:
That the above stated EMS recommends City Council approve the Write -Off amount of. $1,263,510.05
PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this
8th day of June, 2010, at which meeting a quorum was present, held in accordance with the provisions of
the Texas Government Code, §551.001 et seq., as amended.
Memo - Resolution.doc
City Council Memorandum
Page P
APPRO
Hal Bal in, Mayor
ATl T:
� 1 ,
Brenda Dennis, City Secretary
3iemo- Resolution.doc