STRATEGIC PRIORITY: Public Safety
AGENDA DATE: January 10, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Fire-Rescue Department
EXECUTIVE: Jon Fortune
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service contract, with two one-year renewal options, for the implementation and operation of the Ambulance Supplemental Payment Program and preparation and reporting of the cost allocation report to the Texas Health and Human Services Commission with Public Consulting Group, LLC through an intergovernmental agreement with the City of Frisco - Estimated Revenue: General Fund $40,150,179.00; Estimated Expense: General Fund $1,606,007.16 (subject to appropriations)
Body
BACKGROUND
This service contract will provide for the implementation and operation for the Ambulance Supplemental Payment Program (ASPP), and preparation and cost allocation reporting through Texas Health and Human Services Commission (HHSC) for uncompensated emergency ambulance service for the City. The City’s cost to provide Medicaid-covered patient care to each Medicaid patient and the uninsured is greater than revenue received during the monthly billing and collection services. The ASPP is a federally approved program that helps reduce the gap between the cost of providing emergency ambulance services to Medicaid patients and what Medicaid pays for those services. Additionally, the ASPP will help cover a portion of the City’s tremendous cost for providing ambulance services to uninsured patients. This contract will allow the vendor to assist Fire-Rescue Department in analyzing the emergency medical services costs, the billing and collection claims from Digitech, the billing and collection vendor, to ensure compliance with the federal Medicaid regulations, and prepare a cost allocation report under the set standard by HHSC for the City.
In the last five and a half fiscal years this program has captured $133.8 million in gross revenue that the City would have had to continue covering from its general fund, which represents a portion of the current gap. Under this contract the City will pay Public Consulting Group, LLC a commission of four percent of collected gross revenues paid by HHSC. Public Consulting Group, LLC a national firm, and a leader in developing effective Medicaid Cost Recovery programs around the country, will also assist the City of Dallas in implementing changes that are required by the Center for Medicare and Medicaid Services with the extended State Waiver 1115 Program.
This Interlocal Purchasing Agreement is authorized by Chapter 791 of the Texas Government Code and Subchapter F, Chapter 271, Texas Local Government Code. Section 271.102 of the Texas Local Government Code which authorizes a local government to participate in a Cooperative Purchasing Program with another local government or a local cooperative organization.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 9, 2019, the City Council authorized a three-year service contract with Public Consultant Group, Inc. for the implementation and operation of the Medicaid supplement payment program for a commission of six percent of collected gross revenues, by Resolution No. 19-0096; and
On January 8, 2022, the City exercised the first of two annual renewal options by Supplemental Agreement No. 1 to extend the term of the service contract with Public Consulting Group, Inc. for an additional one-year term from January 8, 2022 to January 7, 2023; and
On January 8, 2023, the City exercised the second of two annual renewal options by Supplemental Agreement No. 2 to extend the term of the service contract with Public Consulting Group, Inc. for an additional one-year term from January 8, 2023 to January 7, 2024.
The Public Safety Committee will be briefed by memorandum regarding this matter on January 8, 2024.
FISCAL INFORMATION
Estimated Revenue: General Fund $40,150,179.00
FY 2024-25 - $13,383,393.00
FY 2025-26 - $13,383,393.00
FY 2026-27 - $13,383,393.00
Estimated Expense: General Fund $1,606,007.16
FY 2024-25 - $535,335.72
FY 2025-26 - $535,335.72
FY 2026-27 - $535,335.72
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$40,150,179.00 |
Revenue |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
N/A |
N/A |
N/A |
|
• The Business Inclusion and Development Policy does not apply to Revenue contracts. |
|
• Public Consulting Group, Inc. - Non-Local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Interlocal Agreement/Inter governmental Agreement |
• Interlocal Agreements/Intergovernmental Agreements allow the City to take advantage of competitively bid contracts by a State agency or local government and enable the City to purchase goods or services at lower prices |
|
|
• Interlocal Agreements/Intergovernmental Agreements are an alternative method of meeting the requirements for competitive bidding or competitive sealed proposals, not an exception from that requirement |
OWNER
Public Consulting Group, LLC
William S. Mosakowski, President
Tony McLean Brown, Vice President