HomeMy WebLinkAboutAgenda Statement 1984/02/28 Item 7 COUNCIL AGENDA STATEMENT
Item 7
Meeting Date 2/28/84
:M TITLE: Resolution /21C / - Approving Extension of the Paramedic Service Contract and
Rate Schedule Amendment for MedTrans (DBA Hartson's
Ambulance Service)
1MITTED BY: Director of Public Safet9u (4/5ths Vote: Yes No x
IElnED BY: City Manager 7'6,.
two y-ar Paramedics' Service Contract with MedTrans (DBA Hartson's) terminated on
rnber 8, 1983. During this time of uncertainty, as it pertains to the anti-trust laws,
Ef feels that it would be appropriate to issue a request for proposals for paramedic
vices. At this time MedIrans is also requesting an amendment to the Rate Schedule due
Changes in Medicare reimbursement policies.
)NMENDATION: That Council adopt resolution approving the extension of the Paramedic
Service Contract and Rate Schedule Amendment for MedTrans, and direct
staff to initiate a RFP process for the paramedic service.
RDS/COMMISSIONS RECOMMENDATION: Not applicable.
USSION:
ae past the City has negotiated paramedics contracts without going through a bid process.
ff is requesting that the contract with Hartson's be extended until September 8, 1984.
s should allow sufficient time for an RFP to be developed and issued, proposals prepared,
Witted and evaluated, a provider recommended by staff and selected by Council, the contract
Dtiated and executed,and a smooth transition effected.
tson's is also requesting that this contract extension contain an amendment to allow them
immediately initiate patient charges for life support supplies.
the inception of the paramedics program, hospitals have resupplied paramedic units with
gs and medical supplies used in the medical treatment of patients in the field. The
ients were then billed for those drugs and medical supplies by the hospital. These
plies include airway tubes, splints, cervical collars, EKG pads, IV needles and materials.
cruse of the recent changes in Medicare reimbursement policies, it is no longer possible for
pitals to bill Medicare for supplies used in prehospital, paramedic care. And since
vitals are not allowed to discriminate between Medicare patients and all others, all local
pitals have discontinued billing patients for supplies. Hospitals are now billing the
amedic agency for the resupply of paramedic units.
tson's is requesting an amendment in the fee schudule that would allow them to charge cost
s 77% for these disposable supplies and drugs that are administered to patients. Hartson's
1s the 77% markup is justified in order to recover bad debt (67%) and costs for administer-
this new program (10%) . Hartson's current collection rate on paramedic-level bills is
roximately 60%. 'Ib recover the 40% bad debt, a 67% markup is required. The remaining 10%
kup will allow them to recover the estimated additional overhead costs related to charging
supplies and drugs. Hartson's is developing agreements with the various hospitals whereby
hospitals would charge cost plus 10% for these drugs and supplies. Under this new system,
charges to patients would be considerably less than those formerly charged to the patient
the hospitals, Since it is accepted practice for hospitals to include personnel application
is and substantial overhead costs in the price of the item. In essence, the charge for
se supplies is being transferred from the hospital bill to the paramedic/transport bill.
in A-113 (Rev. 11/79)
Item 7
Meeting Date
Page 2
net effect will be a reduced cost for supplies to the patient.
UNCIAL IMPACT: None
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