Loading...
HomeMy WebLinkAboutResolution No. 2011-06ti<<rty KENAI. ALASKA CITY OF KENAI RESOLUTION NO. 2011 -06 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A COLLECTIONS POLICY FOR DELINQUENT AMBULANCE BILLS OWED TO THE CITY. WHEREAS, the City of Kenai commenced billing for City provided ambulance services on May 1, 1995; and, WHEREAS, through FY10 the City has collected $2,514,789 in ambulance fees but has carried an uncollected balance of 5867,277 with delinquencies dating back to 1998; and, WHEREAS, in FY10 the City invoiced $413,666 for 677 ambulance runs, if 100% collected, the financial equivalent of levying a mill rate of 0.66 mills on City property owners; and, WHEREAS, approximately 24% of patients transported by the City's Fire Department are not residents of the City and, absent potential sales tax, contribute nothing to the City's tax base to support these important, lifesaving services; and, WHEREAS, the City intends to begin actively collecting unpaid balances dating back to January 1, 2007, and may utilize a third party collection service to do so; and, WHEREAS, unpaid invoices dated January 1, 2007, to June 30, 2010, total approximately $250,000; and, WHEREAS, active collection action against patients who have failed to pay for ambulance services but who have the means and ability to pay is in the best interest of the City of Kenai and its taxpayers. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the Council approves the following collection policy for delinquent ambulance bills: Patients who still have an unpaid balance after receiving a minimum of two invoices, and after receiving notification of the City's Charity Care Policy, shall be subject to the following collection procedures: 1. The City shall issue a demand for payment indicating the balance owed and providing documentation of the City's Charity Care Policy. The demand shall include a date by which the City must be paid in full or by which the patient must make written repayment arrangements with the City. 2. Patients may enter into a payment plan with the City for payment of their past due balance. A payment plan may include a signed confession of judgment, a Resolution No. 2011 -06 Page 2 of 2 written repayment agreement, an assignment of the Alaska Permanent Fund dividend, or any combination thereof. 3. Patients failing to satisfy their account by payment, by approval for charity care, and /or by entering into a repayment plan by the due date may be turned over to the City's third -party collection agent for further collection action. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of January 2011. ATTEST: Carol L. Freas, City Clerk Approved by Finance: PAT PORTER, MAYOR KENAI, ALASKA \77 To: Rick Koch, City Manager /From: Terry Eubank Date: January 13, 2011 Re: Resolution 2011 -06 Ambulance Fee Collection Policy. 'Village with a Past, Ci y with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014 Pursuant to Council requests, I have prepared a resolution approving the administration planned collection procedure on delinquent and future ambulance billing invoices. The change in policy is the final step in an overhaul of the City's ambulance billing process. This process has included implementing a third party billing service to process City ambulance bills, development and implementation of a charity care policy to assist those patients who have a limited or no ability to pay, and finally the development of a comprehensive collection procedure for unpaid patient bills. At June 30, 2010 the City was carrying $867,277 in outstanding ambulance bills some dating back to 1998. Invoices prior to January 1, 2007 shall be written off and no further collection action shall be taken. Invoices from January 1, 2007 through current total $254,520 and will be subject to the following collection action. Upon adoption of this collection policy, the City will be soliciting for a third party collection service. The fee for such a service will be contingent upon actual collections (a of what they actually collect). Prior to pursuing collections, patients will be informed and provided and opportunity to apply for the City's Charity Care Policy. Those failing to apply or not qualifying will be provided one final opportunity to pay their balance in full or enter into a payment plan with the City by signing a confession of judgment, provide a promissory note, or assigning their 2011 Alaska Permanent Fund dividend to the City. Accounts failing to utilize any of these remedies will be forwarded to the City's contracted collection company. This policy will ensure that those who are financially unable to pay will not. Those with the means to pay will pay for the services received. Through this policy the City will be able to offer flexible payment arrangements but have more aggressive tools for those who refuse to pay.