File #: A 20-336    Name: Amendment No. 3 to Debt Collection Services Master Agreement per RFP #9600-64
Type: BoS Agreement Status: Passed - Natividad Medical Center
File created: 8/14/2020 In control: Board of Supervisors
On agenda: 9/1/2020 Final action: 9/1/2020
Title: Authorize the Chief Executive Officer for Natividad Medical Center (NMC) or his designee to execute amendment No. 3 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 (1) year (October 1, 2020 through September 30, 2021) for a revised full agreement term of October 1, 2016 through September 30, 2021 and adding $1,000,000 for a revised total aggregate amount not to exceed $7,970,000.
Attachments: 1. Board Report, 2. Receivable Solutions Amendment No. 3, 3. Credit Consulting Services Amendment No. 3, 4. Receivable Solutions Amendment No. 2, 5. Credit Consulting Services Amendment No. 2, 6. Receivable Solutions Amendment No. 1, 7. Credit Consulting Services Amendment No. 1, 8. Receivable Solutions Agreement, 9. Credit Consulting Services Agreement, 10. Item No. 13 Completed Board Order
Related files: A 22-627
Title
Authorize the Chief Executive Officer for Natividad Medical Center (NMC) or his designee to execute amendment No. 3 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 (1) year (October 1, 2020 through September 30, 2021) for a revised full agreement term of October 1, 2016 through September 30, 2021 and adding $1,000,000 for a revised total aggregate amount not to exceed $7,970,000.
Report
RECOMMENDATION:

It is recommended the Board of Supervisors:

Title
Authorize the Chief Executive Officer for Natividad Medical Center (NMC) or his designee to execute amendment No. 3 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 (1) year (October 1, 2020 through September 30, 2021) for a revised full agreement term of October 1, 2016 through September 30, 2021 and adding $1,000,000 for a revised total aggregate amount not to exceed $7,970,000.

SUMMARY/DISCUSSION:


NMC utilizes two outside contractors, per RFP 9600-64 to collect on NMC's self-pay patients and bad debt collections. The contractor shall receive three (3) daily data files of all self-pay patients from NMC'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 arranging and setting up a payment plan for services incurred at NMC. If there is no response, the patients account is put into a bad debt collection for further collection efforts. Liens are applied as appropriate.

The agreement documents themselves do not state a total agreement amount specifically. Payment is based on the amount of debt collected and is...

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