Title
a. Ratify and authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Renewal & Amendment No. 6 with Credit Consulting Services, Inc. for debt collection services at NMC to extend the term of the Agreement for one additional year, retroactive to July 1, 2015, for a full Agreement term of August 1, 2007 through June 30, 2016, with no increase to the total Agreement amount of $3,100,000.
b. Authorize the Deputy Purchasing Agent for NMC or his designee to execute one (1) future Amendment to the agreement which does not significantly alter the scope of work and does not cause an increase of more than $100,000 which is ten percent (10%) of the original amount of the Agreement ($1,000,000).
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
a. Ratify and authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Renewal & Amendment No. 6 with Credit Consulting Services, Inc. for debt collection services at NMC to extend the term of the Agreement for one additional year, retroactive to July 1, 2015, for a full Agreement term of August 1, 2007 through June 30, 2016, with no increase to the total Agreement amount of $3,100,000.
b. Authorize the Deputy Purchasing Agent for NMC or his designee to execute one (1) future Amendment to the agreement which does not significantly alter the scope of work and does not cause an increase of more than ten percent (10%) of the original amount of the Agreement.
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. The payment amount is based on a percentage of debt collected.
The term of this Agreement expired on June 30, 2015. More than half of NMC’s agreements have expiration dates of June 30 which creates an excessively high workload during the fiscal year end. Out of the nearly 200 Agreements NMC processed between February and June of 2015 a small percentage were not completed prior to expiration on June 30 such as the amendment for this Agreement with Credit Consulting Services. Therefore, NMC is requesting that this Renewal and Amendment be retroactive to July 1, 2015 so as to cover services rendered since that time. To help prevent such a high volume of agreements to process at next fiscal year end, NMC has started to stagger the end dates on some of its Agreements so the vast majority don’t expire on June 30 and are more evenly processed throughout the year.
NMC is requesting a one year extension on the term of this Agreement to allow for time to solicit for debt collection services during FY15-16 with the intent of awarding new agreements for FY16-17. NMC had issued a Request for Proposals (RFP) for debt collection services during FY13-14 but the selection process was not completed in a timely manner so no awards were made.
This Renewal and Amendment No. 6 extends the term of the Agreement only. The Board of Supervisors previously approved a total Agreement amount of $3,100,000 and the Agreement has a balance remaining of $446,370 which NMC will use during Fiscal year 2015-16, therefore no increase to the Agreement amount is being requested at this time.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Renewal & Amendment No. 6 as to legal form and risk provisions, and the Auditor-Controller has reviewed and approved as to payment provisions. The Renewal & Amendment No. 6 has also been reviewed and approved by NMC’s Finance Committee on 8/27/15 and by its Board of Trustees on 9/4/15.
FINANCING:
There is no dollar amount for Renewal and Amendment No. 6. $446,370 is included in the FY15-16 Adopted Budget for this Agreement. There is no impact to the General Fund.
Prepared by: Vince Carr, Director of Patient Financial Services, 783-2345
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Renewal & Amendment No. 6 to Credit Consulting Services Agreement
Amendment No. 5 to Credit Consulting Services Agreement
Renewal & Amendment No. 4 to Credit Consulting Services Agreement
Amendment No. 3 to Credit Consulting Services Agreement
Renewal & Amendment No. 2 to Credit Consulting Services Agreement
Renewal & Amendment No. 1 to Credit Consulting Services Agreement
Agreement with Credit Consulting Services
Spend Sheet for Credit Consulting Services Agreement
Attachments on file with the Clerk of the Board