Title
Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 5 to the Agreement (A-11010) with Credit Consulting Services Inc. for Bad Debt Collection Services at NMC, extending the Agreement to June 30, 2015 for a total Agreement amount not to exceed $3,100,000 (no increase to previously approved amount) in the aggregate.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 5 to the Agreement (A-11010) with Credit Consulting Services Inc. for Bad Debt Collection Services at NMC, extending the Agreement to June 30, 2015 for a total Agreement amount not to exceed $3,100,000 (no increase to previously approved amount) in the aggregate.
SUMMARY/DISCUSSION:
Credit Consulting Services Inc. is one of two agencies that NMC uses to provide collection services for NMC's self-pay patients and bad debt collections. Credit Consulting Services receives a daily data file of all self-pay patients from NMC's Meditech system and is responsible to send three (3) collection notices to the patient within a 150 day time frame, if no response is received from the patient, then the account is put into bad debt collections. Credit Consulting Services has been providing this service to Natividad since 2007 and is a need to recover bad debt monies.
This Renewal and Amendment No. 5 extends the term of the Agreement through June 30, 2015. No additional dollars from the previously approved amount of $3,100,000 are being requested at this time.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No. 5 as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Amendment No. 5 as to fiscal provisions. The Amendment No. 5 has also been reviewed and approved by Natividad Medical Center's Board of Trustees.
FINANCING:
As a result of Amendment No. 3, the Board of Supervisors approved a $700,000 increase for Fiscal Year 2011-2012 in the maximum liability for the Agreement (for a total Agreement amount not to exceed $3,100,000 in the aggregate). Amendment No. 4 was approved for Fiscal Year 2012-2013 at the same aggregate amount. As a result of this Amendment No. 5, no additional dollars will be added. Remaining funds from the previous year's purchase orders (approximately $1,300,000). $700,000 is budgeted in the Fiscal Year 2013/14 Recommended Budget. Amounts for remaining years of the Agreement will be included in those budgets as appropriate. There is no impact to the General Fund.
Prepared by: Vince Carr, Patient Financial Services Director, 783-2345
Approved by: Harry Weis, Chief Executive Officer, 783-2553
Attachments: Amendment No. 5, Original Agreement, Spendsheet, Amendments 1, 2, 3, and 4
Attachments on file with the Clerk to the Board's Office