ACTION REQUESTED:
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Communication from the City Manager and the Fire Chief with a Request to APPROVE and Authorize the Execution of a Three-Year CONTRACT with FIRE RECOVERY USA to Provide Billing and Collection of Fire Department Non-Emergency Medical Services, the Cost of which would be Determined by the Recovery Rate.
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BACKGROUND: As part of the Fire Department’s efforts to offset a portion of the expenses associated with providing Non-Emergency Medical Service (EMS), a Request for Proposal (RFP) was developed to select a vendor to assist the City with billing and collecting for these services. The RFP was advertised and a pre-proposal meeting was held for potential respondents. Proposals were opened on November 20, 2018.
Three vendors responded, one of which did not meet the minimum requirements and was not
scored. A committee was formed and the remaining two proposals were reviewed, utilizing the
criteria listed in the RFP.
Scoring as follows:
Billing and Collecting Fire Services #32-18
|
|
Max Score |
Fire Recovery |
Lifequest Services |
United Adjustment Corp |
|
Rater #1 |
100 |
93 |
85 |
0 |
|
Rater #2 |
100 |
92 |
83 |
0 |
|
Rater #3 |
100 |
96 |
90 |
0 |
|
TOTAL |
300 |
281 |
258 |
0 |
Once the RFP’s were reviewed, the separately sealed pricing information was opened and the committee analyzed the rates (as a percent of collection) that each company proposed. Fire Recovery proposed 20% with an average recovery rate of 75%-80%, and Lifequest Services proposed 7.25% with an average recovery rate of 55%-60%.
The table below shows the rate comparison:
|
Company |
Amount Billed |
Recovery % |
Amount Recovered |
% back to PFD |
Received by the PFD |
|
Fire Recovery |
$400,000 |
90% |
$360,000 |
80% |
$288,000 |
|
|
$400,000 |
80% |
$320,000 |
80% |
$256,000 |
|
|
$400,000 |
70% |
$280,000 |
80% |
$224,000 |
|
|
$400,000 |
60% |
$240,000 |
80% |
$192,000 |
|
|
$400,000 |
50% |
$200,000 |
80% |
$160,000 |
|
|
$400,000 |
40% |
$160,000 |
80% |
$128,000 |
|
|
$400,000 |
1% |
$4,000 |
80% |
$ 3,200 |
|
|
|
|
|
|
|
|
Lifequest |
$400,000 |
90% |
$360,000 |
92.5% |
$333,000 |
|
|
$400,000 |
80% |
$320,000 |
92.5% |
$296,000 |
|
|
$400,000 |
70% |
$280,000 |
92.5% |
$259,000 |
|
|
$400,000 |
60% |
$240,000 |
92.5% |
$222,000 |
|
|
$400,000 |
50% |
$200,000 |
92.5% |
$185,000 |
|
|
$400,000 |
40% |
$160,000 |
92.5% |
$148,000 |
|
|
$400,000 |
8.65% |
$3,460 |
92.5% |
$ 3,201 |
Collection rate from Fire Recovery in comparable cities in Illinois:
Naperville, IL: 97% Collection Rate $421,818 Collected
Elgin, IL: 86% Collection Rate $430,935 Collected
Fire Recovery has agreed to all terms and conditions of the proposal document.
FINANCIAL IMPACT: The vendor will keep a portion of the amount collected as their fee.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The City will see an increase in revenue.
IMPACT IF DENIED: The City will need to find an alternative billing vendor
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: Fire Recovery 03517-200331
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Support sustainability.
2. Have an efficient government.
DEPARTMENT: Fire