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Resolution 93-20995 • RESOLUTION NO. 93-20995 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT TO THE AGREEMENT BETWEEN CONSOLIDATED MEDICAL SERVICES, INC. AND THE CITY Off' MIAMI BEACH, FLORIDA,EXTENDING THE AGREEMENT FOR A PERIOD OF NINETY (90) DAYS, COMMENCING RETROACTIVELY TO NOVEMBER 30, 1993, AND ENDING ON FEBRUARY 28, 1994. WHEREAS, On October 1, 1992, the City entered into an Agreement with Consolidated Medical Services, Inc. , (CMS) to provide billing and collection services to persons transported on City rescue vehicles, the Agreement attached and incorporated herein as Exhibit "A" ; and WHEREAS, the Agreement expired on November 30, 1993 ; and WHEREAS, the Administration has recommended that rather than renew the existing Agreement with CMS, a new Request for Proposal for the services be prepared and distributed; and WHEREAS, in order to assure that the services required under the Agreement continue to be performed in an undisturbed manner, up to and until the selection of the new proposal and/or bidder, the Administration further recommends that a First Amendment to the Agreement be approved, for a period not to exceed ninety (90) days, the Amendment commencing retroactively to November 30, 1993 , and ending on February 28, 1994. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are authorized to execute a First Amendment to the Agreement between Consolidated Medical Services, Inc. , and the City of Miami Beach, Florida, extendin. the Agreement for a period of ninety (90) days, retroactive to ovember 30, 1993, \nd ending on February 28, 1994. PASSED AND ADOPTED THIS . 151 DAY OF Decembe i , 993 , )1 AL MA O: ATTEST: .(1Nakkl CITY CLERK FORM APPROVED , LEGAL DEPT. a:\rja\cms.res By C2 Date 12"1`�-5 O CITY' OF N1IAM/. I ' • E EACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. ` 713 4) -3 TO: Mayor Seymour Gelber and DATE: December 15 , 1993 Members of the City Commission FROM: Roger M. Cart AC City Manager SUBJECT: CONSOLIDATED MEDICAL SERVICES MONTH-TO-MONTH AGREEMENT TO TAKE EFFECT ON EXPIRATION OF PRESENT YEARLY AGREEMENT DATED NOVEMBER 30, 1993. • ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission authorize the Administration to enter into a month-to-month agreement with Consolidated Medical Services for the billing and collection of Emergency Transport Fees until a bid process for these services is completed. BACKGROUND On September 2, 1992, the City Commission approved a 14-month trial period commencing October 1, 1992, for Consolidated Medical Services (CMS) to bill and collect service fees for Fire Department Emergency Transport.. Although the Finance Department had been performing this function for years, it was decided in 1992 that a private sector company should be retained to determine if it could be more effective in the collection process than an internal department. Although Consolidated Medical Services (CMS) achieved this result, the original Commission Memorandum #540-92, stipulated that "a bid process will be undertaken at the end of the period. " . ANALYSIS Previous to the agreement with Consolidated Medical Services, the Finance Department had been able to collect approximately 35% of the total Fire Rescue transport charges levied, which resulted in approximately $375,000 annually. An accounts receivable overview of the last six (6) ' months of the trial period with Consolidated Medical Services (June - November, 1993, see attached) , revealed a gross collection rate of 61.4%. This resulted in a revenue of approximately $433,000 during this period. With no interruption in billing or any reduction in the number of transports, we feel that the revenues will continue at this rate and produce approximately $800, 000 annually. The review of this data from Consolidated Medical Services (CMS) appears to demonstrate that a private company is more effective in its billing and collection services. . Therefore, it seems appropriate that a bid specification be prepared and the bidding process go into effect as quickly as possible. 12 AGENDA ITEM — — DATE 2-is- 3 • Commission Memorandum Page 2 December 15, 1993 CONCLUSION It is recommended that the City Commission authorize the City Manager to enter into a month-to-month agreement with Consolidated Medical Services (CMS) to be effective from December 1, 1993, and continue until the bidding process is completed. Attachment(s) 1 RMC\BD • F 1\CamMemo.CMS 1.3 .14 CITY OF MIAMI BEACH EM SERVICES • M028 12/09/93 4 '4 ACCOUNTS RECEIVABLE OVERVIEW As of Month End Nov 93 -=C-HARGE5-4-PAYMENTS Nov 92 Nov 93 Oct-93 Sep 93---Aug 93 .Iu-l-93 Jun--93 TOT-AL AVERACE • .. Transports 494 829 535 408 578 596 564 3,510 585 Chg 209.51 204.40 201 .96 206.86 203.46 2-03.19 --208.69 204-,-61 Average 0/Trans 211 .22 204.40 202.34 207.37 203.46 203.53 209.43 204.94 TOTAL CHARGES 103,500 169,450 108-050 84,4. 0 -1-17,600 121 , 100 117,700 718,300 119,717 LESS: Medicaid Dis 0 8,612 3,661 3,359 4,557 4,254 2, 191 26,634 4,439 Medicare Di-s 0 2241-27 13r632 17,741 1-8--SC3 21,641 19,156 112,820 18,803 . . .. W/C Disallowance 0 0 0 .0 100 0 0 100 17 HMO/PPO Dis O 451 178 359 49 155 51 j ,243 207 --HoiwFeas nd#-0ent 0 10, 195 5, 139 -3,664, . 6,755 1 , 154 650 27,55S 4,593 - Champus Dis 0 11 11 11 0 0 0 33 6 City Employees - 150 4,216 124 1 ,515 260 323 130 6,320 1 ,053 ransport-Ads . 0 150 0 400 250 0- 0 800 133 Small Bal Adj 0 - 8 304 32 33 20 23 420 70 Credit Trans Adj 0 250 0 - 30 242 0 0 522 87 Mod A Dis 0 0 0 0 0 4 0 0 . 0 . Medicaid A Dis 0 0 0 0 0 0 0 . 0 0 -NE-T--GHARCES - 103,350 123,430 857249 57T28-7 86,831 . 93T557 95,499 541 ,853 90,309 PAYMENTS 75 89,585 53,893 71 ,706 76,314 87,481 61 ,713 440,692 73,448 -LESS � i Refunds 0 1 ,049 0 1 ,051 1 ,028 1 ,821 2,409 7,358 1 ,226 :s::s:m: s:sms====: • -NET--PAYMENTS 75 88,536 53T893--7-0--655 75--286---85-,-66 0 -59-,-304 433,334 72,222 - PCT. OF COLL • YEAR TO DATE "I Gross Coll X 0.1X 52.9% 49.9% 85.0% 64.9X 72.2% 52.4% 61 .4% 61 .4% 3 1 Net Coll X 0.1% 71 .7% 63.2% 123.3% 86.7% 91 .6% 62.1% 80.0% 80.0X • CURRENT A/R • AVG---- --Tot-a-I -A/8 2-04-,575 51-,r246 586,-332--- 580,326-----598r492"�--596-r1-1-6----S95T382 577,982 u/0 to Collection 0 68,714 36, 044 35,318 9,415 7, 080 2,200 t58,771 26,462 Bad Debt X of Chg 0.0% 40 .6% 33.4% 41 .8% 8.0% 5.8% 1 .9% 22.1% 22.1% �• ---- -5--- . t. FIRST AMENDMENT TO AGREEMENT BETWEEN CONSOLIDATED MEDICAL SERVICES, INC. AND THE CITY OF MIAMI BEACH, FLORIDA This First Amendment to the Agreement between Consolidated Medical Services, Inc. (CMS) and the City of Miami Beach, Florida, (CITY) made and entered into this 15 day of December, 1993. WITNESSETH: WHEREAS, On October 1, 1992 , the City entered into an Agreement with CMS to provide billing and collection services for persons transported on City rescue vehicles; and WHEREAS, this Agreement expired on November 30, 1993 . NOW, THEREFORE in consideration of the mutual covenants contained herein, - and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows: 1. Paragraph 18 of the Agreement is hereby amended to read as follows: 18 . This agreement will expire on February 28, 1994. 2 . Paragraph 21 is hereby added as follows: 21. Any controversy or claim for money damages arising out of or relating to this Agreement, or the breach hereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and the arbitration award shall be final and binding upon the parties hereto and subject to no appeal, and shall deal with the question of the costs of arbitration and all matters related thereto.. In w • that regard, the parties shall mutually select three arbitrators, but to the extent the parties cannot agree upon three arbitrators, then each party and the American Arbitration Association shall appoint one. Judgment upon the award rendered may be entered by any court having jurisdiction, or application may be made to such court for an order of enforcement. Any controversy or claim other than a controversy or claim for money damages arising out of or relating to this Agreement, or the breach hereof, including any controversy or claim relating to the right to specific performance, shall be settled by litigation and not arbitration. 3 . Paragraph 22 is hereby added as follows: 22. The City desires to enter into this Agreement only if in so doing City can place a limit on its liability for any cause of action for money damages due to an alleged breach by City of this Agreement, so that its liability for any such breach never exceeds the sum of $1, 000. CMS hereby expresses its willingness to enter into this Agreement with a $1, 000 limitation on recovery for any damage action for breach of contract. Accordingly, CMS hereby agrees that City shall not be liable to CMS for damages in an amount in excess of $1,000 for any action occurring from breach of contract arising out of the performance or non performance of any 2 1 application imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitations placed upon City's liability as set forth in Florida Statute, Section 768 .28. 4. The parties hereby ratify and confirm all of the terms and conditions of the Agreement which remain unchanged. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their respective duly authorized officer, and the respective corporate seals to be affixed this , W. day of January, ;, 199 4. Cii of Miami Beac ity Clerk ayor Attest: Consolidated edical Services: � ��L ,zp/p tJ cretary y 'resident O a:\rja\cms.fam FORM APPROVED LEGAL DEPT. By Date /2-i4-13 3