Subject:
Title
Request to Write-Off Uncollectible Ambulance FY 18/19
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Fiscal Impact:
The removal of receivables in the amount of $9,782,255.49 from the financial statements does not preclude continuing efforts to collect the receivables in future years. In accordance with County Policy BCC-37, Fire Rescue sends appropriate uncollected accounts to a collection agency for further action. The Medicare/Medicaid/Champus $15,190,252.92 is not forwarded to the collection agency as it is the contractual write off amount.
Annually, during BCFR’s budget development process, EMS billing revenue is forecasted based on historical net revenue received from EMS account receivables. Revenue forecasting in this manner takes into consideration the write-offs from contractual adjustments and uncollected billing charges.
Dept/Office:
Fire Rescue
Requested Action:
Recommendation
The Fire Rescue Department requests, in accordance with Ordinance No. 79-21, that the Board approve the FY 2018-2019 uncollectible EMS accounts receivable write-off as noted below.
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Summary Explanation and Background:
The removal of these Emergency Medical Services (EMS) accounts receivable is in accordance with Ordinance 79-21 and generally accepted accounting principles. A specific listing of each account is available from Fire Rescue upon request. A file containing all the County’s uncollectible receivables shall be maintained by the Clerk of the Circuit Court, as required by ordinance.
Emergency Medical Services (EMS):
Appropriate Accounts for a Financial Write-Off
The EMS write-off is a balance sheet financial write-off only. Even though this write-off occurs annually, the County, through the actions of its billing service provider and debt collection agency, Intermedix and Linebarger Goggan Blair & Sampson, LLP respectively, continues to pursue collections of these accounts. This portion of the write-off consists of accounts that were appropriate for referral for a financial write-off after up to five attempts to collect were made. These accounts have “Dates of Service” through September 2018. The write-off amount of $9,782,255.49 reflects those accounts that are no longer current (older than 1 year). This allows EMS to update receivable reporting for patients that are current only.
Medicare/Medicaid/Champus Contractual Write-Off
The EMS write-off is a balance sheet financial write-off only. The Medicare/Medicaid/Champus write-offs are based upon required contractual adjustments. These write-offs are the difference in what BCFR bills for service and what Medicare, Medicaid and Champus agree to pay contractually. The annual write-off figures for these accounts are the annual total (through September 2018) of the amounts of mandatory write-offs applied to Medicare, Medicaid or Champus accounts. The amount of $15,190,252.92 is the contractual write-off figure from the monthly Intermedix reports “Management Summary Report”.
Clerk to the Board Instructions: