| | | | | | | |  | Competitive Bid Reports - C2 C
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Alina T. Hudak, City Manager | | | DATE: | September 13, 2023 | | | |
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, TO AUTHORIZE NEGOTIATIONS RELATING TO REQUEST FOR PROPOSALS NO. 2023-015-ND, FOR EMERGENCY MEDICAL TRANSPORT BILLING AND COLLECTION SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH DIGITECH EMS BILLING LLC, AS THE TOP-RANKED PROPOSER; FURTHER, IF THE ADMINISTRATION IS NOT SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH DIGITECH EMS BILLING LLC, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH EMS MANAGEMENT AND CONSULTANTS, INC., AS THE SECOND-RANKED PROPOSER; FURTHER, IF THE ADMINISTRATION IS NOT SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH EMS MANAGEMENT AND CONSULTANTS, INC., AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH CHANGE HEALTHCARE TECHNOLOGY ENABLED SERVICES, LLC, AS THE THIRD-RANKED PROPOSER; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS. |
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| | | | | | | | RECOMMENDATION
| It is recommended that the Mayor and City Commission approve the Resolution accepting the City Manager’s recommendation, pursuant to RFP 2023-015-ND, for emergency medical transport billing and collection services, to negotiate with Digitech EMS Billing LLC, the top-ranked proposer. The Resolution also authorizes the Administration, if negotiations are not successful with Digitech EMS Billing LLC, to negotiate with EMS Management and Consultants, Inc., the second-ranked proposer, and, Change Healthcare Technology Enabled Services, LLC, the third-ranked proposer, in order of rank. The Resolution also authorizes the City Manager and City Clerk to execute an agreement upon the conclusion of successful negotiations.
The solicitation is currently under the cone of silence. |
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| | | | | | | | BACKGROUND/HISTORY
| The Fire Department provides medical transportation services, commonly known as ambulance services, to residents and visitors. Medical transportation services are critical to transfer patients quickly and efficiently from an incident to a health care facility. While in transit, highly trained personnel provide the emergency medical services that may be needed.
To assist with receiving reimbursement for the costs of the emergency medical and transportation services provided, the City currently has a contract with a third-party firm specializing in emergency medical transportation billing and collection services. On September 12, 2018, the Mayor and City Commission awarded a contract for the services to Advanced Data Processing, Inc., a subsidiary of Intermedix Corporation, pursuant to RFP 2017-002-JC. The initial term of the Agreement expired on June 26, 2022, and in order to seek a replacement contract for these services, on February 9, 2022, the Mayor and City Commission authorized the issuance of Request for Proposals (RFP) 2022-019-ND. Bids were due on April 13, 2022, and a sole responsive proposal was received from Digitech EMS Billing LLC. Subsequently, on August 3, 2022, because the RFP's specifications inadvertently contained requirements that severely limited competition, the City Manager, pursuant to Section 2-367(b)(1) of the Miami Beach City Code, approved the rejection of the sole responsive, responsible bidder and authorized the issuance of a new solicitation once the specifications and requirements had been revised. |
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| | | | | | | | ANALYSIS
| On April 25, 2023, the City issued RFP No. 2023-015-ND for emergency medical transport billing and collection services. A voluntary pre-proposal conference to provide information to proposers submitting a response was held on May 10, 2023. One (1) addendum was issued. The Procurement Department issued bid notices to 5,990 companies through the e-procurement system, with 48 prospective bidders accessing the advertised solicitation. RFP responses were due and received on June 9, 2023. The City received a total of four (4) proposals from the following firms:
Air Methods Corporation d/b/a Cypheron Healthcare Solutions
Change Healthcare Technology Enabled Services, LLC
Digitech EMS Billing LLC
EMS Management and Consultants, Inc.
On June 8, 2023, the City Manager appointed the Evaluation Committee via LTC # 260-2023. The Evaluation Committee convened on June 26, 2023, to consider the proposals received. The Committee was comprised of Joseph Florio, Firefighter I, Fire Department; Jorge Linares, Fire Division Chief, Fire Department; Femi Ogunmola, Financial Analyst III, Finance Department; and Victor White, Division Chief, Fire Department. The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance, and the Government Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of each proposal. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the ranking of proposers, as indicated in Attachment A, including the top three ranked firms as follows:
1st ranked – Digitech EMS Billing LLC
2nd ranked – EMS Management and Consultants, Inc.
3rd ranked – Change Healthcare Technology Enabled Services, LLC
A summary of each top-ranked firm based on information provided in the proposals follows.
Digitech EMS Billing LLC
Since being founded in 1984, Digitech EMS Billing LLC has refined its software platform to create a cloud-based billing and business intelligence solution that monitors and automates the entire emergency medical services (EMS) revenue cycle. Digitech leverages its proprietary technology to offer fully outsourced services that maximize collections, protect compliance, and deliver results for clients. Its mission is to provide the highest quality EMS billing service centered around superior technology, responsive customer support, real-time reporting, and integration expertise. Digitech has over 20 years of experience working for Florida EMS providers.
Digitech is the incumbent providing these services to the City, and the City has been satisfied with its work and offered positive feedback.
EMS Management and Consultants, Inc.
For 27 years, EMS Management and Consultants, Inc. (EMS MC) has processed over 3.3 million claims annually across 41 states, including over 226,000 claims in Florida. EMS MC has experience implementing and interfacing with ESO ePCR software as a Platinum Partner, with over 130 ambulance providers nationally. Its success is based on innovation, advocacy, and compliance.
Change Healthcare Technology Enabled Services, LLC
Change Healthcare Technology Enabled Services, LLC (Change Healthcare) has 33 years of experience in billing and medical revenue management, and its adept team helps its clients implement successful billing strategies. Change Healthcare works with 200+ agencies to process a high volume of over 1 million transports, which generates approximately $1 billion in charges. Relevant local experience includes clients such as the City of Miami Department of Fire Rescue, the City of Hialeah, and the City of Coral Gables. |
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| | | | | | | | SUPPORTING SURVEY DATA
| | Not Applicable |
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| | | | | | | | FINANCIAL INFORMATION
| Since 2019 Digitech has charged the City an annual fee of 4.75% on reimbursements for medical billing and collections and a $9 fee per Medicaid account processing (approximately $88,520 annually). In its proposal to the RFP, Digitech proposes an annual fee of 4.65% for medical billing and collections and a $8 fee for Medicaid account processing (approximately $85,032 annually), which will result in the City retaining a more significant portion of the reimbursement revenue collected. Moreover, additional cost savings are expected since the City no longer needs to lease the hardware and intends to negotiate a rate for the managed software (ESO ePCR). |
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| | | | | | | | | Amount(s)/Account(s): | The RFP is intended to be revenue-generating. |
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| | | | | | | | CONCLUSION
| After reviewing the submissions and the Evaluation Committee’s rankings and commentary, Digitech EMS Billing LLC (Digitech) is deemed to be the best-qualified provider of emergency medical and transportation billing and collection services. Digitech has provided these services to the City of Miami Beach since 1994. Digitech currently processes over 1,000,000 claims annually for more than 50 clients in Florida. The firm maintains two Florida offices (Miami Lakes and Tampa). Digitech has been involved in the Florida Program for Emergency Medical Transportation (PEMT) since 2016 and, therefore, has an in-depth understanding of Florida regulations, including Florida Medicaid claims processing.
EMS Management and Consultants, Inc., the second-ranked proposer, and, Change Healthcare Technology Enabled Services, LLC, the third-ranked proposer, are also well qualified if negotiations with Digitech are not successful.
For the reasons stated herein, it is recommended that the Mayor and City Commission approve the Resolution authorizing the Administration to enter into negotiations with Digitech EMS Billing LLC, as the top-ranked proposer; further, if the Administration is not successful in negotiating an agreement with Digitech EMS Billing LLC, authorizing the Administration to enter into negotiations with EMS Management and Consultants, Inc., as the second-ranked proposer; further if the Administration is not successful in negotiating an agreement with EMS Management and Consultants, Inc., authorizing the Administration to enter into negotiations with Change Healthcare Technology Enabled Services, LLC, as the third-ranked proposer; and further authorizing the City Manager and City Clerk to execute an agreement upon conclusion of successful negotiations by the Administration. |
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| | | | | | | | | Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? | | Does this item utilize G.O. Bond Funds? | | | No | | No | |
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| | | | | | | | Legislative Tracking Fire/Procurement |
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