Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute amendment No. 2 to the agreements with Receivable Solutions, Inc. (A-13319) and Credit Consulting Services, Inc. (A-13320) for debt collection services, adding $2,400,000 for a revised total aggregate amount not to exceed $6,970,000 with no change to the agreement term of October 1, 2016 through September 30, 2020.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute amendment No. 2 to the agreements with Receivable Solutions, Inc. (A-13319) and Credit Consulting Services, Inc. (A-13320) for debt collection services, adding $2,400,000 for a revised total aggregate amount not to exceed $6,970,000 with no change to the agreement term of October 1, 2016 through September 30, 2020.
SUMMARY/DISCUSSION:
NMC utilizes 2 collection agencies, Receivable Solutions and Credit Consulting Services, to provide collection services for NMC self-pay patients and bad debt collections as a result of RFP 9600-64. Each agency receives daily files of accounts to send collection notices to patients. If payments are not received within 150 day time frame the account will turn over to proceed with collection efforts. The volume of accounts sent to these agencies fluctuate volume based on NMC business. The agreement documents themselves do not state a total agreement amount specifically. Payment is based on the amount of debt collected and is therefore an unknown. NMC is requesting an increased aggregate dollar limit for both agreements not to exceed $6,970,000 which reflects the estimated amount NMC might pay for debt collection fees through the end of the agreement term.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this amendment No. 2 as to legal form, and the Auditor-Controller has reviewed and approved as to payment provisions. The ...
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