Memo Resolution EMS Bad Debt and Contractural Allowable Write-Off'sAgenda No. 5
CITY COUNCIL MEMORANDUM/RESOLUTION
City Council Meeting: June 10, 2008
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 November 1,
2007 through March 31, 2008. For this period we are requesting to write -off $336,964.28 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 $23,440.83.
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 $408,396.23.
This is the second write -off of FY 2007 -2008 totaling $1,204,999.60 out of an anticipated budgeted
amount of $2,425,998 of total Bad Debt Expenses.
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 $1,204,999.60.
PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this
10th day of June, 2008, at which meeting a quorum was present, held in accordance with the provisions of
V.T.C.A., Government Code, §551.001 et seq.
M APPI
H4 Baldwin, Aayor
A T:
r
a Dennis, City Secretary
Memo- Resolution.doc