SR 07-26-2011 3NCity Council Meeting: July 2622, 1*2,011
Agenda Item: /I~
To: Mayor and City Council
From: Scott Ferguson, Fire Chief
Subject: Emergency Ambulance and Billing Services Contract
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Ameri-Care Ambulance, aCalifornia-based company, to provide
emergency ambulance and billing services for a three year term with a one year
optional renewal
Executive Summary
Emergency ambulance and billing services have been provided by a contractor since
2004. Following a competitive bidding process, staff recommends a contract with
Ameri-Care to provide emergency ambulance and billing services for a three year term
beginning in August 2011with a one year optional renewal.
Discussion
The City has utilized an emergency ambulance and billing service company since 2004
to provide billing services for the Fire Department for the costs associated with
Emergency Medical Services provided by Fire Department paramedics in connection
with the response, assessment, treatment and/or transportation of members of the
public. Costs are assessed based on the. Advanced Life Support Assessment Fee
adopted on June 15. 2004 and the Skilled Nursing Facility fee adopted on June 15,
2010. The Fire Department fleet includes six paramedic engine companies and other
support units, including four ambulances which are mainly used for special events.
Contracted emergency ambulances are used to transport patients on behalf of the Fire
Department. On-board medics treat patients in the back of the ambulance until the
patient arrives at a medical facility.
1
Contractor Selection
A request for proposals for an emergency ambulance and billing service was
disseminated to 16 licensed ambulance companies in Los Angeles County and placed
on the City's website through Planet Bids. Five Los Angeles County ambulance
providers submitted proposals. Bids ranged from 0% to 20% of net collections for
providing billing services.
A committee of six staff from the Fire and Finance departments evaluated a total of
eight proposals and made site visits. Five proposals were to provide ambulance and
billing services and three proposals were submitted to manage the billing only.
After a thorough review, the committee recommends Ameri-Care as the best bidder
based on the evaluation. criteria. Ameri-Care was one of only two respondents that
offered no additional charges for billing services and the only one committed to the
purchase of property in Santa Monica on which to locate an ambulance station. Ameri-
Care's main office in Carson would allow for additional ambulances to response to the
City in a timely manner, should the need arise. The company is large, has experience
with 911 dispatch systems, has redundant. systems for operations and dispatch,
employs real-time vehicle location services, and would provide quarterly utilization
reports. In addition, in-house mechanics would address major vehicle repairs and
mobile mechanics would be on hand for minor repairs. Ameri-Care would participate in
joint fire and ambulance crew training and partner with Santa Monica to provide CERT
and CPR training to the community. Additionally, Ameri-Care demonstrated a billing
and reporting system that displayed strong financial controls and flexible reporting
capacity.
Financial Impacts & Budget Actions
Ameri-Care's compensation would be based on a share of the fee received from the .
patient rather than a direct payment from the City. There is no direct charge to the City
for services provided. Rather, the benefit to the contractor is the ability to access the
City of Santa Monica ambulance market and bill patients for ambulance services
2
provided. The value of these services would depend on actual usage. The previous
contractor estimated the gross revenue generated annually by this contract to be
approximately $2.3 million.
Anticipated revenue generated by fees collected by Ameri-Care on behalf of the Santa
Monica Fire Department has been included in the FY2011-2013 Budget in the amount
of $1,259,911 for FY2011-12 and $1,291,409 for FY2012-13.
Prepared by: Mark Bridges, Captain/Paramedic Coordinator.
Forwarded to Council:
Rod Gould
City Manager
3
Approved:
Reference Contract No.
9438 (CCS).