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HomeMy WebLinkAbout08-36 Resolution No. 08-36 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH ANDRES MEDICAL BILLING, LTD. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that Olufemi Folarin,City Manager,be and is hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Andres Medical Billing,Ltd. for emergency medical service billing and management reporting services, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schack, Mayor Presented: February 27, 2008 Adopted: February 27, 2008 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk —OL Resolution No. 08-36 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH ANDRES MEDICAL BILLING, LTD. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,be and is hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Andres Medical Billing, Ltd. for emergency medical service billing and management reporting services, a copy of which is attached hereto and made a part hereof by reference. Ed Schock, Mayor Presented: February 27, 2008 Adopted: Vote: Yeas Nays Recorded: Attest: Diane Robertson, City Clerk 4 ' , CITY OF ELGIN AGREEMENT FOR Bid Number: 07-125 for: EMS Billing and Management Reporting This Agreement is made and entered into thisa7day of -r su0\r 200by and between the City of Elgin ("the CITY"), a municipal corporation organ' ed and existing under the laws of the State of Illinois, and kiidves Medica( 13i lima ,1 t- , incorporated in the state of J U I i h OI S and having a principal place of business at 3 14. j dge, AoluQ, ("the CONTRACTOR"). Air Itneon ghtsfT-L ARTICLE I. DEFINITION. "THIS-CONTRACT" as used herein shall mean this Agreement and all attachments hereto, the Request for Proposal (RFP) including all documents referenced therein and the Contractor's bid response (bid) thereto incorporated by reference herein and made a part hereof. The CONTRACTOR agrees to provide the goods and/or servies all in accordance with the RFP and CONTRACTOR'S Bid. In the event there is a conflict between this Agreement and the bid documents,the bid documents shall supersede this Agreement. ARTICLE II. SCOPE OF WORK. The CONTRACTOR shall provide the goods or services described in the RFP and bid, at the prices and terms contained therein. ARTICLE III. DURATION.The CONTRACTOR shall commence the performance of THIS CONTRACT upon receipt,of a fully executed contract from the City of Elgin and shall end Deccoo,r2o12. ARTICLE IV. TERMINATION. The following shall constitute events of default under THIS CONTRACT: a) any material misrepresentation made by the CONTRACTOR to the CITY,b) any failure by the CONTRACTOR to perform any of its obligations under THIS CONTRACT including, but not limited to, the following: (i) failure to commence performance of THIS CONTRACT at the time specified in THIS CONTRACT due to a reason or circumstance within the CONTRACTOR's reasonable control,(ii) failure to perform THIS CONTRACT with sufficient personnel and equipment or with sufficient material to ensure the completion of THIS CONTRACT within the specified time due to a reason or circumstance within the CONTRACTOR's reasonable control, (iii) failure to perform THIS CONTRACT in a manner reasonably satisfactory to the CITY, (iv) failure to promptly re-perform within reasonable time the services that were rejected by the CITY as erroneous or unsatisfactory, (v) failure to comply with a material term of THIS CONTRACT, including, but not limited to the Affirmative Action requirements, and(vi) any other acts specifically and expressly stated in THIS CONTRACT as constituting a basis for termination for cause. The CITY may terminate THIS CONTRACT for its convenience upon fourteen(14)days prior written notice. ARTICLE V . DAMAGES. From any sums due to the CONTRACTOR for goods or services, the CITY may keep for its own the whole or any part of the amount for expenses, losses and damages as directed by the Purchasing Director, incurred by the CITY as a consequence of procuring goods or services as a result of any failure, omission or mistake of the CONTRACTOR in providing goods or services as provided in THIS CONTRACT. ARTICLE VI. GOVERNING LAWS AND ORDINANCES. This CONTRACT is made subject to all the laws of the State of Illinois and the ordinances of the CITY and if any such clause herein does not conform to such laws or ordinances, such clause shall be void(the remainder of the contract shall not be affected) and the laws or ordinances shall be operative in lieu thereof. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois. ARTICLE VII. AFFIRMATIVE ACTION. The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, ancestry, national origin, place of birth, age or physical handicap which would not interfere with the efficient performance of the job in question. The CONTRACTOR will take affirmative action to comply with the provisions of Elgin Municipal Code Section 3.12.100 and will require any subcontractor to submit to CITY a written commitment to comply with those provisions. The CONTRACTOR will distribute copies of 1 commitment to all persons who participate in recruitment, screening, referral and selection of job applicants and prospect subcontractors. The CONTRACTOR agrees that the provisions of Chapter 3.12 of the Elgin Municipal Code, 1976 hereby incorporated by reference, as if set out verbatim. ARTICLE VIII. ASSIGNABILITY. The CONTRACTOR shall not assign, sell or transfer any interest in TI' CONTRACT without prior written consent of the CITY. . . i . • ARTICLE IV. AMENDMENTS. There shall be no modification of the CONTRACT,except in writing and executed with the same formalities of the original. ARTICLE X. NOTICES. Any notice given under this CONTRACT shall be in writing and shall be deemed to have been given when hand delivered or deposited in the U.S. mail, certified or registered, return receipt requested, addressed, it'to CONTRACTOR, at the address set forth above to the attention of the project manager or undersigned representative;anclif to the City, to the attention of the City Manager, 150 Dexter Court, Elgin, IL 60120 or to such other address and/or authorized representatives as either party shall designate in writing-to the other in the manner herein provided. I1 ARTICLE XI. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to and shall indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits,judgments, costs, attorney's fees, damages or any and all other relief or liability arising out of or resulting front or through or alleged to arise out of any acts or negligent acts or omissions of Contractor or Contractor's officers, emplqees, agents or subcontractors in the performance of this agreement, including but not limited to,all goods delivered or services or work performed hereunder. In the event of any action against the City, its officers,employees, agents, boards or commis ions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel (7 f the City's choosing. The provisions of this Article shall survive any expiration and/or termination of this agreement. ARTICLE MI. PUBLICITY. The CONTRACTOR may not use, in any form or medium,the name of the City of Elgin for public advertising unless prior written permission is granted by the CITY. ARTICLE XIII. APPROPRIATIONS. The fiscal year of the CITY is the 12 month period ending December 31. The obligations of the CITY under any contract for any fiscal year are subject to and contingent upon the appropriation of funds sufficient to discharge the obligations which accrue in that fiscal year and authorization to spend such funds for the puriooses of the contract. ARTICLE XIV. This agreement shall not be construed so as to create a joint venture, partnership, employment or pother agency relationship between the parties hereto. I If, for any fiscal year during the term of the CONTRACT, sufficient funds for the discharge of the CITY'S obligations kinder the contract are not appropriated and authorized, then the CONTRACT shall terminate as of the last day of the prededing fiscal year, or when such appropriated and authorized funds are exhausted, whichever is later, without liability to the CITY for damages,penalties or other charges on account of such termination. ARTICLE XV. ENTIRE AGREEMENT. This CONTRACT embodies the whole agreement of the parties. There s all be no promises, terms, conditions or obligations other than those contained therein; and this agreement shall superse e all previous communications,representations, or agreements, either verbal or written,between the parties. The person signing THIS CONTRACT certifies that s/he has been authorized by the CONTRACTOR to commit the CONTRACTOR contractual and has been authorized to execute THIS CONTRACT on its behalf. IN WITNESS WHEREOF the parties have hereto set their hands the day and year first above written. CONT w CT, • C Y OF ELGFN A / 4.1We"'" , ,4 0.-: e4) .., Name an. itle Olufemi ollIFIV City I ana r • 7 . 1 . . ft4 February 8, 2008 ! `` l ` TO: Mayor and Members of the City Council ', FROM: Olufemi Folarin, City Manager "'''`'ll W'i' James R. Nowicki, Fiscal Services Director SUBJECT: RFP #07-125, Emergency Medical Service Billing and Management Reporting Services with Andres Medical Billing, Ltd. PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to award a contract for full service Emergency Medical Service (EMS) billing, collection and management reporting to Andres Medical Billing, Ltd. (Andres). RECOMMENDATION It is recommended that the City Council accept the proposal of Andres to provide EMS billing, collection and management reporting services for a period of five (5) years with an option to renew for an additional two (2) year term at a cost of 6.25 percent of net collections. BACKGROUND Andres has been providing ambulance billing, collection and reporting services since January 1997. Over the past 10 years, Andres has provided a high level of service and significantly' contributed to the improved collection rate that the City has experienced during the past two years. Their current contract expired December 31, 2007. To ensure the quality and integrity of the City's procurement system and to maximize the purchasing value of public funds, the, Finance Department issued a Request for Proposal ("RFP") for EMS billing, collection, and management reporting services. The RFP was sent to three vendors, published in the November 7, 2007 edition of the Courier News and posted on the City's Web Site www.cityofelain.org. A total of nine proposals were received on or before the submission due date of December 3, 2007. The RFP required that each company's submission include a description of their billing, collection, and reporting processes, a list of client and hospital references, a company history,; and the cost of providing this service. The purpose of the proposal was to demonstrate the company's qualifications, experience, and ability to administer the City's ambulance billing and management reporting in accordance with agreed upon specifications. The cost portion of the EMS Billing and Management Reporting Services February 8, 2008 Page 2 proposal requested a fee quote based upon a percentage of monthly collections received on accounts billed less any refunds (net collections). The RFP anticipated that the ambulance fees for residents and non-residents would increase during the contract term as Medicare/Medicaid emergency medical service rates for basic life support and advanced life support increased. Therefore, each company was asked to provide a proposed fee that considered assumed rate increases throughout the term of the contract. The fee percentages submitted ranged from 5.75 percent to 9.60 percent of net collections. Andres submitted an initial fee of 6.25 percent of net collections and will decrease this fee to 5.75 percent based on the anticipated rate increases as described in the RFP. Each of the responding firm's proposals were evaluated separately by representatives from the Finance, Purchasing, and Fire Departments and then combined for a final analysis. The proposals were analyzed and ranked based on ability to meet City Of Elgin's criteria, experience, references and cost. The cost was not the primary factor considered in the selection of a service provider. In fact, two companies submitted proposals with slightly lower fee percentages. However, they were not responsive with respect to our request for hospital references thus reducing their overall ranking. Andres provides ambulance billing, collection and reporting services for a multitude of Fire Departments throughout the Chicagoland area. In addition, Andres has established relationships with several area hospitals which allow them electronic access to billing records. Having this access has increased the City's collection rate. In 2005, the City billed $1,516,000 and collected $850,000 (56%) compared to collections of$1,403,000 on billings of$1,940,000 (72%) in 2006. Based on Andres' proposal and reference checks, we have determined that they would best meet the needs of the City and provide the best value for the cost of this service. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT For the ten month period beginning March 1, 2008, there are sufficient funds budgeted and available ($166,440) in the 2008 General Fund, Fiscal Services' Customer Service Division, account number 010-2005-718-45.10 (Collection Services) to enter into this annual contract of $81,250 ($67,710 prorated for 10 months) with Andres Medical Billing, Ltd. LEGAL IMPACT None EMS Billing and Management Reporting Services February 8, 2008 Page 3 ALTERNATIVES 1. The City Council may choose to accept the proposal as recommended. 2. The City Council may choose to award the contract to one of the other eight companies that submitted an RFP. Respectfully submitted for Council consideration. JRN: cal