Memo Resolution EMS Bad Debt and Contractural Allowable Write-OffsAgenda No. 3
CITY COUNCIL MEMORANDUM /RESOLUTION
City Council :Meeting:
Department:
Subject:
BACKGROUND:
February 12, 2008
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 July 1, 2007
through October 31, 2007. For this period we are requesting to write -off $157,110.75 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 $38,768.13.
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 $240,319.38.
This is the first write -off of FY 2007 -2008 out of budgeted amounts of $1,297,220 of anticipated
Contractual Allowables and $1,282,530 of anticipated Bad Debt Expenses.
RECOMMENDATION
Staff recommends Council approve the recommended write -off s.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ:
That the above stated staff recommendation is hereby approved by City Council as per City policy.
PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this
12`x' day of February, 2008, 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 2
APPROVI -1) 7
Kal Baldwin, Mayor
ATTEST.
r
Brenda Dennis, City Secretary
Memo - Resolution.doe