Title
a. Authorize the Chief Executive Officer for Natividad Medical Center or his designee to execute renewal & amendment No. 8 to the agreements with Receivable Solutions, Inc. (A-13319) and Credit Consulting Services, Inc. (A-13320) pursuant to the Request for Proposal (RFP) #9600-64 for debt collection services, to extend an additional one-year period (July 1, 2025 through June 30, 2026) for a revised full agreement term of October 1, 2016 through June 30, 2026 and adding $3,500,000 for a revised total aggregate amount for all contracts not to exceed $16,470,000.
b. Authorize the Chief Executive Officer for Natividad Medical Center or his designee to execute up to three (3) future amendments to the agreement which do not significantly alter the scope of work and do not cause an increase of more than 10% ($240,000) of the original cost of the agreement.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
a. Authorize the Chief Executive Officer for Natividad Medical Center or his designee to execute renewal & amendment No. 8 to the agreements with Receivable Solutions, Inc. (A-13319) and Credit Consulting Services, Inc. (A-13320) pursuant to the Request for Proposal (RFP) #9600-64 for debt collection services, to extend an additional one-year period (July 1, 2025 through June 30, 2026) for a revised full agreement term of October 1, 2016 through June 30, 2026 and adding $3,500,000 for a revised total aggregate amount for all contracts not to exceed $16,470,000.
b. Authorize the Chief Executive Officer for Natividad Medical Center or his designee to execute up to three (3) future amendments to the agreement which do not significantly alter the scope of work and do not cause an increase of more than 10% ($240,000) of the original cost of the agreement.
SUMMARY/DISCUSSION:
Natividad Medical Center utilizes two outside contractors, per RFP 9600-64 to collect on Natividad Medical Center’s self-pay patients and bad debt collections. The contractor shall receive four (4) daily data files of all self-pay patients from Natividad Medical Center’s Meditech system. With this information, the contractors will be responsible to send three (3) collection notices to the patient within a 150-day time-frame requesting payment. The contractors are responsible for billing, collecting, arranging and setting up a payment plan for services incurred at Natividad Medical Center. If there is no response, the patients account is put into a bad debt collection for further collection efforts. Liens are applied as appropriate.
Payment is based on the amount of debt collected and is, therefore, an unknown, so the agreement documents themselves do not state a total agreement amount specifically. Natividad Medical Center is requesting an increased aggregate dollar limit for both agreements not to exceed $12,970,000 which reflects an estimated amount Natividad Medical Center might pay for debt collection fees through June 30, 2025.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this renewal & amendment No. 8 as to legal form, and the Auditor-Controller has reviewed and approved as to payment provisions. The Amendment is scheduled to be reviewed by Natividad Medical Center’s Finance Committee and Board of Trustees on August 8, 2025.
FINANCING:
The cost for this renewal & amendment No. 8 is $3,500,000 of which is included in the Fiscal Year 2025-26 Adopted Budget. Amounts for remaining years of the agreement will be included in those budgets as appropriate. Funding will be provided from NMC’s Enterprise Fund 451-9600-6613.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The Debt Collection Services agreements give Natividad Medica Center the ability to collect patient’s monetary responsibilities for the services they have incurred at Natividad Medical Center and place liens as appropriate.
__ Economic Development
X Administration
__ Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Tracy Short, Director of Patient Financial Services, 783-2347
Approved by: Charles R. Harris, Chief Executive Officer, 783-2504
Attachments:
Receivable Solutions, Inc. Renewal & Amendment No. 8
Credit Consulting Services, Inc. Renewal & Amendment No. 8
Receivable Solutions, Inc. Amendment No. 7
Credit Consulting Services, Inc. Amendment No. 7
Receivable Solutions, Inc. Amendment No. 6
Credit Consulting Services, Inc. Amendment No. 6
Receivable Solutions, Inc. Renewal & Amendment No. 5
Credit Consulting Services, Inc. Renewal & Amendment No. 5
Receivable Solutions, Inc. Amendment No. 4
Credit Consulting Services, Inc. Amendment No. 4
Receivable Solutions, Inc. Amendment No. 3
Credit Consulting Services, Inc. Amendment No. 3
Receivable Solutions, Inc. Amendment No. 2
Credit Consulting Services, Inc. Amendment No. 2
Receivable Solutions, Inc. Amendment No. 1
Credit Consulting Services, Inc. Amendment No. 1
Receivable Solutions, Inc. Agreement
Credit Consulting Services, Inc. Agreement
Attachments on file with the Clerk of the Board