File #: 19-021    Version: 1 Name:
Type: Contract Status: Approved
File created: 1/15/2019 In control: City Council
On agenda: 1/22/2019 Final action: 1/22/2019
Title: 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.
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|1010|Rater #2
100
92
83|1010|Rater #3
100
96
90|1010|TOTAL
300
281
258|1010|
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,...

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