Subject:
Title
Approval, Re: Write off uncollectible ambulance debt associated with Emergency Medical Services (EMS) accounts for Fiscal Years (FY) 2024 and 2025 related to the closure of accounts associated with Change Healthcare; and to approve the annual write-off of uncollectible EMS-Management & Consultants ambulance debt for January 1, 2025, through September 30, 2025.
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Fiscal Impact:
In accordance with BCC-37, Brevard County Fire Rescue (BCFR) refers appropriate delinquent accounts to a contracted collection agency for further recovery actions.
1. $7,187,847.83 is requested to be removed through uncollectible financial write-offs to facilitate the closeout of accounts associated with Change Healthcare for fiscal year FY2024. This action does not preclude continued collection efforts in future years.
2. $14,389,075.85 is requested to be removed through uncollectible financial write-offs to facilitate the closeout of accounts associated with Change Healthcare for fiscal year FY2025 and includes the final balance of the contract with an end date of July 13, 2025.
3. $5,485,613.10 is requested to be removed through uncollectible financial write-offs to facilitate the closeout of accounts associated with EMS-Management & Consultants for the period of January 1, 2025, through September 30, 2025.
Dept/Office:
Public Safety Group: Brevard County Fire Rescue
Requested Action:
Recommendation
Fire Rescue requests Board approval, in accordance with Resolution No. 79-21, for the FY2024 and FY2025 write-offs of uncollectible EMS accounts receivable and the closure of accounts associated with Change Healthcare and EMS-Management & Consultants.
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Summary Explanation and Background:
The removal of these Emergency Medical Services (EMS) accounts receivable is undertaken in accordance with Resolution 79-21 and Generally Accepted Accounting Principles (GAAP). Pursuant to the requirements of the ordinance, a record of all County receivables deemed uncollectible shall be maintained by the Clerk of the Circuit Court.
The amounts proposed for write-off represent accounts that are no longer current, have been referred to the County’s contracted collection agency, or are otherwise determined to be uncollectible after reasonable collection efforts. This action permits EMS to accurately update its accounts receivable records to reflect only active and current patient balances.
The requested debt write-off associated with Change Healthcare reflects the closure and/or transfer of all remaining accounts previously administered through that billing platform. The delay in finalizing these accounts resulted from the February 2024 Change Healthcare cybersecurity incident, which temporarily impaired BCFR contractor’s ability to process billing, collect payments, and reconcile EMS transport revenues. A timeline of incidents during disruption is attached, along with the Department’s plan moving forward.
Clerk to the Board Instructions:
File to County uncollectible receivables.