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Jf R,}1/O)~ Iuty · FRANK T. MARTINEZ TY OF LOS ANGEL. Office of the City Clerk CALIFORNIA CITY CLERK Council and Public Services KAREN E. KALFAYAN Room 395, City Hall Executive Officer Los Angeles, CA 90012 Council File Information - (213) 978-1043 General Information - (213) 978-1133 When malting inquiries Fax: (213) 978-1040 relative to this matter refer to File No. HELEN GINSBURG ANTONIO R. VILLARAIGOSA Chief', Council and Public Services Division MAYOR 03-0814 November 9, 2005 City Administrative Officer Chief Legislative Analyst Information Technology Agency Fire Department RE: LOS ANGELES FIRE DEPARTMENT AMBULANCE BILLING PROCESS REVIEW AND OUTSOURCING ASSESSMENT BY BEARINGPOINT INC. At the meeting of the Council held October 26, 2005, the following action was taken: Attached reports adopted....................................... X Attached motion adopted() .......................... ············------ Attached resolution adopted() .................................. ______ Ordinance adopted .............................................. _______ Motion adopted to approve attached report ...................... ______ Motion adopted to approve attached communication ............... _______ To the Mayor FORTHWITH. X Ordinance Number ............................................... ------- Publication date .............................................. ·---~-- Effective date ................................................. ______ Mayor concurred. 11-0 7 - O5 Mayor failed to act - deemed approved .......................... ______ Findings adopted ............................................... ______ Negative Declaration adopted ................................... ______ Categorically exempt ............ ·······························------ PLACE IN riLES ~~y Clerk NOV~005 Jf r,}1/o)~ iUTY ·. ~ ~\U\\%\"> { AN~~L EMPLOYMENT OPPORTUN<TY - AFF<RMAT<VE ACT<ON EMPLOYER .RECEIVED OFFICE OF J;l:J(,J,tti y Mayor's Tlf~~Vtt.f""' R City Cle~T~ C±,.[g~'SdiFcfdfi.£ 2005 OCT 27 PM 2: 3 2[D5 OCT ?.7 PM 2: · I CITY OF LOS A NGE:L S Cl.TY CLERK BY___ -...-,,=,-=-, FORTHWITH DEPUTY ·SUBJECT TO MAYOR'S APPROVAL COUNCIL FILE NO. 03-0814 COUNCIL DISTRICT NO. COUNCIL APPROVAL DATE October 26, 2005 RE: LOS ANGELES FIRE DEPARTMENT AMBULANCE BILLING PROCESS REVIEW AND OUTSOURCING ASSESSMENT BY BEARINGPOINT INC NOV O7 2005 LAST DAY FOR MAYOR TO ACT (10 Day Charter requirement as per LAAC 4.133) DO NOT WRITE BELOW THIS LINE - FOR MAYOR OFFICE USE ONLY *DISAPPROVED CP. 8 0 *Transmit obj eidons iW"wrifilng pursuant to C 9.i2.1385 O :ro -l -:=: c:: rn -< I '+-:\0 Nov O7 2005 o -.J :\; S? 0 DATE OF MAYOR APPROVAL OR DISAPPROVAL · 1 C.. n""i ------·- ol g:l ~ ~o , rn ~ - .,.., v .. -- c w O ~ o-- rn MAYOR NOV Oij 2005 File No. 03-0814 2-b THE COUNCIL OF THE CITY OF LOS ANGELES Your PUBLIC SAFETY COMMITTEE · and PERSONNEL COMMITTEE report as follows: Public Comments PUBLIC SAFETY and PERSONNEL COMMITTEES REPORT relative to Los Angeles Fire Department (LAFD) ambulance billing process review and outsourcing assessment by BearingPoint Inc. Recommendations for Council action: 1. INSTRUCT the LAFD, with the assistance of the City Administrative Officer (CAO) and the Information Technology Agency, to prepare and release a Request for Proposal (RFP) for the billing process and technology improvements as identified in the CAO report dated November 17, 2004. 2. DIRECT the LAFD and the CAO to report back with results of the RFP process and recommend~tions concerning how to proceed. 3. RESOLVE that Employment Authority for one Senior Systems Analyst II within the LAFD is APPROVED. Fiscal Impact Statement: The CAO reports that the adoption of the recommendations contained in its report will have no fiscal impact on the General Fund. However, the CAO notes that once a strategy for improvement of the· ambulance billing process has been selected, a significant investment in ambulance billing technology improvements may be required, which would, in turn, yield an increase in billing collections. The CAO reports that the amount of the increased investment and billing collections cannot be accurately determined until the results of the RFP process have been received and reviewed. · (Information Technology and General Services Committee waived consideration of the above matter.) Summary: In a report dated November 17, 2004, the CAO states the LAFD responds to all 9-1-1 emergency medical services requests within the City. In instances where paramedics provide sufficient medical care at the scene, the patient is not transported to the hospital and there is no charge for the services provided. Fees are applied to patients transported to the hospital via an LAFD ambulance. The CAO further notes that on July 9, 2003, the Council adopted a recommendation instructing the initiation of an outside review of the LAFD ambulance billing process by BearingPoint Inc. Included as part of the review was an assessment of ambulance billing costs including an analysis of the fee schedule and benchmarking of the LAFD billing practices and fee schedule against similar agencies. The BearingPoint study also included an assessment of the feasibility and payback associated with outsourcing the LAFD ambulance billing unit operations, and recommendations concerning how the City should proceed to streamline the LAFD ambulance billing processes. The CAO reports that the LAFD has already initiated some of the ambulance billing process improvements recommended by the BearingPoint study, however, there are improvements yet to be accomplished. Finally, the CAO states that because of the significant potential for streamlining the ambulance billing process and the potential for an increased revenue flow, the City should explore the costs and the options for implementing an automated field data capture capability in-house. The CAO recommends issuing a RFP for the acquisition of the necessary technology upgrades such as hand held devices and software to permit electronic field data capture of billing information utilizing a system integrator. The Audits and Governmental Efficiency Committee approved the recommendations contained in the CAO report on December 13, 2004. At a regular meeting on June 13, 2005, the Public Safety Committee amended the CAO's recommendations to include the approval of a position authority for one Senior Systems Analyst II within the LAFD. On August 3, 2005, the Personnel Committee concurred with the Public Safety Committee. This matter is now being forwarded to Council for consideration. Respectfully submitted, PUBLIC SAFETY COMMITTEE MEMBER VOTE MEMBER VOTE MISCIKOWSKI YES ZINE YES REYES YES GARCETTI YES WEISS ABSENT ZINE ABSENT PARKS YES fZ6fT ADOPTED SG 10/11/05 OCT 2-6 2005 #030814d."'."pd ,qs ANGELES CITY com,r· _ro_nm M.AYOR FORfflYlfI'Ji MAYOR WITH flLE! -4-, l ~:> ,·J "' t_'} ·r· ;,_ r ·t _ ~.... -~ TO THE COUNCIL OF THE File No. 03-0814 OIJY OF LOS ANGELES Your AUDITS AND GOVERNMENTAL EFFICIENCY Committee reports as follows: Public Comments AUDITS AND GOVERNMENTAL EFFICIENCY COMMITTEE REPORT relative to the Los Angeles Fire Department (LAFD) ambulance billing process review and outsourcing assessment by BearingPoint, Inc. , Recommendations for Council action: 1. INSTRUCT the LAFD, with the assistance of the City Administrative Officer (CAO) and the information Technology Agency, to prepare and release a Request for Proposals (RFP) for the billing process and technology improvements identified in the CAO report (contained on the Council File). 2. INSTRUCT the LAFD and the CAO to report back to the City Council with the results of the RFP process and recommendations concerning how to proceed. Fiscal Impact Statement: The CAO reports that adoption of the recommendations contained in its report dated November 17, 2004, will have no fiscal impact on the General Fund. However, once a strategy for improvement of the ambulance billing process has been selected, a significant investment in ambulance billing technology improvements may be required, which would, in turn, yield an increase in billing collections. The amount of the increased investment and billing collections cannot be accurately determined until the results of the RFP process recommended by the CAO have been received and reviewed. (Information Technology and General Services Committee waived consideration of the above . matter) Summary: On July 9, 2003, Council adopted a Public Safety Committee recommendation to initiate a review of the LAFD ambulc;Jnce billing process. The review was conducted by BearingPoint, Inc., and included a review of the efficiency of the ambulance billing process, an analysis of the cost assessment and fee schedule, and an assessment of outsourcing opportunities. " . The BearingPoint study presented recommendations for improvements to the LAFD ambulance billing process, which included: increasing ambulance billing fees to cover actual costs of service; reducing the time to generate an invoice; implementation of strategies for managing accounts receivables and collections; develop~ent of additional performance measures and reporting to track ambulance related processes, receivables, collections and revenue; development of a communication strategy and management reporting tools; and a review of City policy on collecting delinquent self pay accounts. In addition, the BearingPoint study recommended that the City consider the development of a Request for Information (RFI) and/or a Request for Proposals (RFP) for: 1) full outsourcing (an end-to-end solution involving data capture, billing and collection services);
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