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TO: Mayor Richard C Irvin
FROM: Christopher Minick Chief Financial Officer/City Treasurer
DATE: January 21, 2025
SUBJECT:
Seeking approval of a Resolution Authorizing the Chief Financial Officer of the City to execute an agreement for Ambulance Billing Services with EMS Management & Consultants (EMS MC)
PURPOSE:
To enter into an agreement for the provision of ambulance billing and collection services with EMS MC. EMS MC acquired Andres Billing Services in 2024 and assumed the City's ambulance billing contract with Andres. EMS MC has provided a proposed agreement for a 12-month period ending February 28, 2026.
BACKGROUND:
In 2008, the City entered into a contract for ambulance billing services with Andres Medical Billing. Andres has billed and collected charges for ambulance and paramedic services on behalf of the City since that time until 2024. During 2024, Andres Medical Billing was acquired by EMS Management & Consultants (EMS MC). EMS MC assumed Andres' book of business and contracts as a result of the acquisition. EMS MC has been providing services since the acquisition under the terms of the Andres contract from 2008.
The City and EMS MC have been working on a successor agreement to the Andres contract to update the contractual arrangement. The services performed include billing Medicaid and Medicare as well as 3rd party insurance companies for ambulance runs completed by City Fire personnel. EMS MC will also bill the patient if and as applicable based on the City's medical billing policies. EMS MC also provides the applicable reporting for those services to the City.
DISCUSSION:
The proposed agreement is similar in scope and scale to the contract that the City had in place with Andres. One major change to the contract is the fee charged for the services. Andres contract called for a fee of 5% of collections. The new contract with EMS MC incorporates a reduced fee of 4% of collections. We anticipate that the savings for the reduction in fees could approximate $50,000 annually. Additionally, the EMS MC contract provides for City personnel to have access to service and reporting portals to assist in the tracking and record keeping related to the services provided.
The initial term of the contract would be a 12-month period from March 1, 2025 to February 28, 2026. Like the Andres contract, the proposed agreement with EMS MC contains automatic renewals of one year duration subject to a 60-day termination notice. Additionally, either side may terminate the contract for any reason whatsoever with 60 days' notice to the other party.
It is the intent of the City's Finance and Fire Department personnel that we will undertake a competitive process within the next 24 months to provide the best value vendor for ambulance billing services. In the meantime, it is important to have an up-to date contract with EMS MC while that process is pending.
IMPACT STATEMENT:
Passage of the Resolution will allow for an updated definition of terms with the City's ambulance billing vendor and would also allow for potential savings of $50,000 annually.
RECOMMENDATIONS:
A motion to approve a Resolution Authorizing the Chief Financial Officer of the City to execute an agreement for Ambulance Billing Services with EMS Management & Consultants (EMS MC)
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Chief Financial Officer of the City to execute an agreement for Ambulance Billing Services with EMS Management & Consultants (EMS MC)
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, The City provides ambulance service and bills relevant Medicare, Medicaid, and third-party insurers for those services, and
WHEREAS, the City entered into a contract with Andres Medical Billing in 2008 to provide billing, collection, and related administrative and recordkeeping services for ambulance billing, and
WHEREAS, EMS Management & Consulting (EMS MC) acquired Andres Medical Billing during 2024, and
WHEREAS, EMS MC assumed the City's contract for services with Andres Medical Billing as a part of that acquisition and EMS MC has been providing ambulance billing services for the City under the terms of that 2008 contract, and
WHEREAS, the City and EMS MC wish to update the terms of the service agreement, including but not limited to a reduction in the service fee from 5% to 4% of collections, and
WHEREAS, the initial term of the contract will be a 12-month period from March 1, 2025 to February 28, 2026,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Chief Financial Officer of the City is hereby authorized to execute an agreement for Ambulance Billing Services with EMS Management & Consultants (EMS MC).