MANAGER’S MEMO ITEM
ITEM: Medical Billing Services
PREPARED BY: Theresa Tarka, Purchasing Assistant
Deputy Chief Bob Tutko
Gina Barr, Administrative Secretary
BID AMOUNT: $ 32,012 approximately ACCOUNT: 001.751.0000.5315
BUDGET AMOUNT: $50,000.00
PURPOSE: To recommend approval of contract to provide ambulance billing services
Staff is recommending approval of a contract with Andres Medical Billing for ambulance billing
services. An outside billing service has assisted the Financial Services Department and Fire
Department for several years in the collection of monies for ambulance services rendered by the
Downers Grove Fire Department for Advanced Life Support (“ALS”) and Basic Life Support
Each year Village emergency personnel transports approximately 3,500 patients. The Village
charges the following per trip for residents and non-residents:
$500-ALS I $650.00-ALS I
$550-ALS II $700-ALS II
$350-BLS, plus $5.00 per mile $450-BLS plus $5.00 per mile
Payment for these services is paid primarily by Medicare, Medicaid, private insurance and self
payment. The Village currently sends ambulance reports to the selected billing firm via the mail.
In the future they will be uploading the reports electronically.
Ambulance report data is submitted on a monthly reimbursement basis to a billing company.
An initial invoice is sent to the patient within 24 hours of entry. Invoices are generated and
mailed on a daily basis by the company. A “Request for Insurance Information” form and a
return envelope are also included with the invoice.
On October 19, 2005 an RFP was sent out and advertised on the E Procurement web-site for
Medical Billing Services denoting estimated yearly revenue collected in fiscal year 2004/2005 of
$533,532.67. The following nine vendors responded:
1. Speciality Billing
2. Paramedic Services
3. Springfield Service Corp
4. Andres Medical Billing
5. Per Se Technologies
6. Health Serve, LLC
7. Advanced Data Processing
8. Accelerated Receivable & Management LTD
9. Diversified Ambulance
Prices for their services range from 6%-12.05% of the monthly collection, with Andres Medical
Billing is being recommended as the low, most responsive bidder. Andres Medical Billing and
Springfield Service Corporation each responded with the lowest rates of 6%. Springfield Service
Corporation had only one municipal client reference while Andres Medical Billing has provided
billing services for the Village of Downers Grove since 2000 and they have been in business
eleven years with an organizational emphasis in municipal ambulance billing. Andres is a very
reliable firm and demonstrated consistently the service level that is required for ambulance
billing. Andres Medical Billing is familiar with and compliant with Medicare and Medicaid
billing procedures as well as HIPAA compliance. References for Andres include over one
hundred thirty one municipalities.
See attached bid tabulation.
Staff recommends the approval of the proposal from Andres Medical Billing and approval of a
contract for FY 2005/06.
REQUESTED COURSE OF ACTION:
Staff requests Council approval at the Council meeting on December 20, 2005.