Exhibit A
Summary of the Services
I. Onsite and Offsite Billing and Collections Services
Tasks:
a. Work the backlog of aged Accounts with specialists with domain knowledge focused on Medicare, Medi-Cal, Commercial, Managed Care and other third-party payors
b. Determine the status of each Account as it relates to contractual allowance, rejected status, rebilling requirements, responsibility of secondary and tertiary payors, completeness of documentation, accuracy of insurance and demographic information, and accomplish procedures required to obtain payment
c. Proprietary quality assurance programs
d. Inventory management system
e. Inventory reconciliation and account integrity system
f. Reporting tools include (sample executive reports attached hereto as Exhibit F):
§ Areas of financial opportunity
§ Root cause analysis
§ Management Action Plan
g. Expertise in all levels of appeals
h. Bill any unbilled Account; correct and resubmit any rejected Account in which payment is due from a payor
i. Edit Claims in accordance with payor specific billing requirements and County’s approval
j. Late charge billing as deemed appropriate by the County
k. UB04 and 1500 secondary and tertiary billing
l. UB04 and 1500 rebilling as necessary to secure payment and/or resolution
m. Patient detail bills on assigned Accounts, as requested
n. Statements and/or approved letters to patients, as appropriate
o. Apply appropriate follow-up work events for Medicare, Medi-Cal, Commercial, Managed Care and other third-party payors
p. Investigate and resolve pending Accounts by contacting the insurance carrier, and as necessary, the physician and/or the insured
q. Submit documentation necessary for payment to the responsible party, including, but not limited to, claims, itemized statements, pre-certification documents, and referrals
r. Retroactive consent form completion
s. Respond to patient inquiries related to billing and collection activity on assigned Accounts
t. Prepare denied Accounts or episodes for appeal to the appropriate payor
u. Monitor remittance advice and rejection rates for prompt payment and resolution of pending Accounts
v. Evaluate problems and issues causing rejection or aging of Accounts and recommend solutions
Account Assignment:
• Initial Assignment of Accounts. On the Task Order Effective Date, the County will assign to RCS all of its inpatient and outpatient third-party Accounts with balances greater than two hundred fifty dollars ($250.00) at day ninety (90) following discharge date or service date, excluding the following financial class codes: D-County Programs, J-Jail, N-County Indigent, U-Undetermined, W-Well Program, and Z-Local/State Fed. All of these Accounts will be worked by the Assigned Personnel located on site at the County. The estimated initial placement of Accounts is approximately $15 million in approximately 9,200 Accounts as shown in table below.
• Continued Assignment of Accounts Greater Than $250.00. After the initial assignment described in (a) above, for a period of six (6) months after the Task Order Effective Date, the County shall assign daily to RCS all inpatient and outpatient third-party Accounts with balances greater than two hundred fifty dollars ($250.00) at day one hundred twenty (120) following discharge date or service date, excluding the following financial class codes: D-County Programs, J-Jail, N-County Indigent, U-Undetermined, W-Well Program, and Z-Local/State Fed. The foregoing Accounts will be worked by the Assigned Personnel located on site at the County.
• Assignment of Third-Party Accounts Less Than $250.00. The County will assign daily to RCS ongoing placements of all its inpatient and outpatient Third-Party Accounts with balances between five dollars ($5.00) to two hundred fifty dollars ($250.00) at day one (1) following discharge date or service date, excluding the following financial class codes: D-County Programs, J-Jail, N-County Indigent, U-Undetermined, W-Well Program, and Z-Local/State Fed. If RCS identifies self pay in the assigned third-party balances, RCS will bill and follow through with the self pay recovery. The estimated initial assignment of Accounts is approximately $2.5 million in approximately 18,500 Accounts. RCS will work Accounts utilizing the collection matrix shown on page 15. RCS reserves the right to change the collection matrix based upon RCS’s resolution and RCS’s collection of payments on assigned Accounts.
Low Balance Third Party Account Process and Tools:
1) Payor specific skills based routing
a. Allowing accounts to be assigned to CSR’s that have specific expertise with working certain payers.
b. This also allows for the ability to manage/work multiple claims when speaking to a payer.
1) Electronic Billing (if applicable to the contractual terms)
a. RCS has a long standing relationship with Relay Health utilizing its ePremis billing platform.
1) Medicare Manager Product
a. RCS contracts with Emdeon Business Services to utilize their Medicare Manager DDE Plus application. The product allows for the view, prioritization, as well as the ability to sort claims.
BILLING AND COLLECTION WORK MATRIX
FOR LOW BALANCE THIRD PARTY ACCOUNTS
II. Revenue Cycle Performance Review (RCPR)
1) The RCPR will consist of a review of the County’s PA, HIM, and PFS departments. The RCPR will identify problematic components of the revenue cycle based on financial data analysis, utilizing RCS’s proprietary diagnostic tools. The RCPR will also include a review of the current processes in relation to best practice processes.
The Consultant assigned to the RCPR will be responsible for the following:
a. Submit the detailed RCPR Data Request Worksheet to the County to be completed and returned prior to the start of the RCPR;
b. Perform an offsite data analysis using the completed RCPR Data Request Worksheet;
c. Prepare a benchmark analysis and develop a benefit forecast;
d. Schedule a one day onsite visit at the County to conduct interviews with the County’s managers for PA, HIM, and PFS departments; and
e. Provide the County with final executive summary and management action plan (“MAP”) to the County’s management to include recommendations based on the results of the RCPR.
III. Self Pay Accounts
• Assignment of Self Pay Accounts. The County will assign daily to RCS ongoing placements of all its inpatient and outpatient Self Pay Accounts, excluding the following financial class codes: N-County Indigent, and U-Undetermined; with balances five dollars ($5.00) and above at day one (1) following discharge date or service date, or resolution of third-party balances; and day one (1) following payment date by primary and/or secondary insurance. If RCS identifies third-party insurance in assigned self pay balances, RCS will bill and follow through with the insurance recovery. The estimated initial assignment of Accounts is approximately $9.4 million in approximately 8,200 Accounts. RCS will work Accounts utilizing the Self Pay Segmentation Process as shown on page 17.
Self Pay Account Process and Tools:
1) Interactive Intelligence – Interaction Dialer
a. Predictive, power, preview, precise and agent-less dialing
b. Comprehensive campaign management
c. Multi-site campaign management
d. Inbound/outbound call blending
e. Agent-less messaging and outbound IVR campaigns
f. Stage-based predicting
g. Remote agent capable
h. Multiple scripting options
i. Contact-based rules for maximum dialing flexibility
2) In Bound Call Skills Based Account Routing
a. RCS has the ability to route accounts to specific teams and/or individuals based on where account is tracking within the collection system.
3) Call Recording
a. All inbound and outbound calls are recorded and saved within individual .wav files should the need to replay occur.
4) Account Segmentation
a. RCS utilizes a custom application to determine an accounts propensity to pay. This application captures multiple data points to enable the prioritization of collection efforts based on specific segmentation categories.
5) Medicaid Verification
a. RCS provides a Medicaid verification check on specific segments of the assigned inventory to ensure all payer efforts are exhausted prior to engaging the self-pay collection efforts.
6) Custom Statements
a. RCS will customize the format of their statements to incorporate the facilities logo’s, watermark’s, and other miscellaneous information that is specific to the facility. This process allows for a seamless transition to the facilities patient base.
7) Acceptance of Credit Cards and Electronic Checks
a. RCS has the ability to accept credit cards and electronic checks when speaking with the patients. All funds are directly deposited to the clients bank account by utilizing the existing facility merchant agreements. This process allows for our Customer Service Representative (CSR) to confirm the funds are available (CC) while the patient is still on the phone.
8) Web Based credit card acceptance
a. A separate product that RCS can provide is a custom web portal that will patients the ability to pay on their accounts by accessing a web link placed on the client home page.
9) Multi-Language Customer Service Representatives
a. RCS has multiple bi-lingual (Spanish and English) Customer Service Representatives (CSR) available within the local Patient Contact Center. In addition, RCS contracts with a telephone interpreter service who can provide translation expertise with over 100 different languages and dialects.
Account Segmentation utilizes customized technology to determine the patient’s propensity to pay their account. This application captures multiple data points including current visit data, demographics, historical payment information, as well as third party data sources to assign an internal score. Please note that these data sources DO NOT include credit bureaus. Based on the scoring result, the account will be placed into one of five categories each containing customized work events to achieve optimum efficiencies and maximum collections, while ensuring the highest level of patient satisfaction.
EXHIBIT B
Summary of Contractor’s Fees
In consideration of the services provided by Contractor in Exhibit A, County shall pay Contractor based on the following fee schedule:
I. Onsite and Offsite Billing and Collections Services
Tasks:
a. Onsite Project – Accounts aged greater than 90 days over $250
i. 14.95% on all payments received on assigned accounts
1. Anticipated costs during the scope of work $457,000 - $710,000
(i) Anticipated cash collections for this scope of work $3.0 M -$4.8 M
2. Term is 8 months
3. Additional termination provisions are as follows:
(i) Changes in Service Fee. RCS will provide the County sixty (60) days prior notice of any increase in the Service Fee. If the proposed increase is not acceptable to the County, the County may terminate this Task Order by providing RCS with thirty (30) days prior written notice to RCS.
(ii) Initial Placement of Accounts. The RCS Service Fee is based on the placement amount, financial class mix, aging of Accounts, and number of Accounts. RCS may adjust the Service Fee percentage if the placement does not meet the minimum criteria described in Section (a) of Attachment B. If the County does not agree with the adjusted percentage, RCS may terminate this Task Order without penalty by providing the County with written notice. The County warrants that any Accounts placed with RCS are not currently and have not previously been placed with, or worked by other outside organizations.
b. Outsourced Project – Accounts from $5 to $250
i. 19.97% on all payments received on assigned accounts
1. Anticipated costs during the scope of work $636,000 - $982,000
(i) Anticipated cash collections for this scope of work $3.2 M -$4.9 M
2. Term is 24 months, subject to the procedures set forth below and the term of the Agreement.
3. Additional termination provisions are as follows:
(i) Term.
a. Either party provides the other party with thirty (30) days written notice prior to the end of the Initial Term.
b. in the event that Task Order Exhibit C-1 (“TO C-1”) is terminated for any reason at any time during the Term of such Task Order, RCS shall have the option to terminate Task
Order Exhibit C-2 (“TO C-2”) by providing thirty (30) days prior written notice to the County.
(ii) Changes in Service Fee. RCS will provide the County sixty (60) days prior notice of any increase in the Service Fee. If the proposed increase is not acceptable to the County, the County may terminate this Task Order by providing RCS with thirty (30) days prior written notice to RCS. RCS will continue to work Accounts assigned RCS prior to the effective date of termination in accordance with Section 5(b)(i).
(iii) Initial Placement of Accounts. The RCS Service Fee is based on the placement amount, financial class mix, aging of Accounts, and number of Accounts. RCS may adjust the Service Fee percentage if the placement does not meet the minimum criteria described in Section (a) of Attachment B. If the County does not agree with the adjusted percentage, RCS may terminate this Task Order without penalty by providing the County with written notice. The County warrants that any Accounts placed with RCS are not currently and have not previously been placed with, or worked by other outside organizations.
II. Revenue Cycle Performance Review (RCPR)
a. Included within the scope of contract for Onsite Project – No additional fees
III. Self Pay Accounts
a. Outsourced Self Pay Project
i. 6.81% on all payments received on assigned accounts
1. Anticipated costs during the scope of work $423,000 - $619,000
(i) Anticipated cash collections for this scope of work $6.2 M -$9.0 M
2. Term is 24 months, subject to the procedure set forth below and the term of the Agreement.
3. Additional termination provisions are as follows:
(i) Term. Either party provides the other party with thirty (30) days written notice prior to the end of the Initial Term.
(ii) Changes in Service Fee. RCS will provide the County sixty (60) days prior notice of any increase in the Service Fee. If the proposed increase is not acceptable to the County, the County may terminate this Task Order by providing RCS with thirty (30) days prior written notice to RCS. RCS will continue to work Accounts assigned RCS prior to the effective date of termination in accordance with Section 5(b)(i).
(iii) Initial Placement of Accounts. The RCS Service Fee is based on the placement amount, financial class mix, aging of Accounts, and number of Accounts. RCS may adjust the Service Fee percentage if the placement does not meet the minimum criteria
described in Section (a) of Attachment A. If the County does not agree with the adjusted percentage, RCS may terminate this Task Order without penalty by providing the County with written notice. The Medical Center warrants that any Accounts placed with RCS are not currently and have not previously been placed with, or worked by other outside organizations.
EXHIBIT C
Task Orders
This Exhibit C consists of the following individual Task Orders:
Exhibit C-1 Billing and Collection Services and RCPR
Exhibit C-2 Billing and Collection Services for Low Balance Insurance
Exhibit C-3 Billing and Collection Services for Self Pay
EXHIBIT C-1
TASK ORDER
Onsite Billing and Collection Services and RCPR
1. Term. The Term of this Task Order shall begin on , 2010 (“Task Order Effective Date”) and shall continue for eight (8) consecutive months thereafter (“Term”), unless earlier terminated in accordance with the Agreement or the provisions of Sections 4(b), 4(c), or 5(c) below. Subject to agreement on rates and services, the Term of this Task Order may be extended upon mutual written agreement of Contractor and the County.
2. Scope of Services. During the Term, Contractor will provide resources to perform Services for the County’s facility, San Mateo Medical Center, consisting of the services described in Sections 2(a) and 2(b) below (“Services”):
(a) Billing and Collection Services. Commencing with the Task Order Effective Date, Contractor will provide the number of Assigned Personnel it deems appropriate to provide the Billing and Collection Services on site at San Mateo Medical Center, consisting of billing, rebilling, follow-up and collection and including the tasks outlined in Attachment A for the County’s accounts receivable described in Attachment B that are assigned to Contractor from the County (the “Accounts”). The Billing and Collection Services are subject to the following:
(i) Length of Time Accounts to be Worked and Defaulted Accounts. All Accounts assigned to Contractor will be worked by Contractor until the earlier of the following to occur:
(A) the day that payment arrangements for an Account has been secured by Contractor; or
(B) the last day of the thirty (30) day period set forth in Section 5(b); or
(C) the day that Contractor determines the balance of the Account is not collectible and is therefore a Defaulted Account. For the purposes of this Task Order, a “Defaulted Account” is an Account that Contractor has unsuccessfully sought payment from any third-party payor that is responsible for charges from which the accounts receivable arises and unsuccessfully sought payment from the patient.
(ii) Directing Payment on Accounts. Contractor will direct all payments and remittances on Accounts to the County. Any payments or remittances received by Contractor will be recorded and immediately forwarded to the County.
(iii) Establishing Procedures. Contractor will work with the County to establish procedures for Contractor to return bad debts, adjustments and self pay balances determined to be in default to the County or for Contractor to place bad debt directly with the County’s primary collection agency.
(iv) Monthly Reports. Contractor will meet at least monthly with the County’s designated senior management team to provide the County with monthly management reports (“Monthly Reports”) that will allow the County to track Contractor’s collection performance under this Task Order. The Monthly Reports will the following:
(A) Placement Report includes patient name, Account number, guarantor name, date assigned, balance assigned, and total number of Accounts and balances assigned.
(B) Recovery Placement Analysis provides a trending report of assigned Accounts by assignment date by month, to include the total amount of Accounts assigned, additional charges, recalls, adjustments, net assignment total, total payments on assigned Accounts, bad debt total, number of paid in full payments, remaining active Account inventory total, percent collected, percent of bad debt, and percent of active inventory.
(C) Root Cause Analysis provides detailed information by Accounts on lost or delayed payments due to lack of documentation, lack of certification, and other delayed causes. This analysis can be used as a tool for internal training.
(D) Account Recovery Analysis
(E) Account Resolution Analysis
(v) Limitation of Contractor’s Duties. Contractor’s duties are limited to billing, rebilling, follow-up and collection based on information furnished by the County on the Accounts. Contractor does not hereby take any responsibility for reviewing, correcting or confirming any information furnished by the County.
(b) Revenue Cycle Performance Review. Commencing within a reasonable time after the Task Order Effective Date, Contractor will provide a Consultant (the “Consultant”) to perform a Revenue Cycle Performance Review (“RCPR”) of the County’s Patient Access (“PA”), Health Information Management (“HIM”) and Patient Financial Services (“PFS”) as described in Attachment C.
(c) Assigned Personnel. The Assigned Personnel under this Task Order will include, but not be limited to the following:
(i) Operations Executive. Contractor will assign an Operations Executive to oversee and monitor the Billing and Collection Services project under this Task Order. He or she will be on site at the County on an as-needed basis, and will meet with the County’s designated senior management team to review the collection performance and the achievement of mutual project goals.
(ii) Interim Revenue Cycle Director. During the Term of this Task Order, Contractor will provide County with an Interim Revenue Cycle Director (the “Director”) that will manage the revenue cycle operations at the County’s San Mateo Medical Center. The Director will provide County with recommended changes to its revenue cycle policies, procedures and processes to assist with efficiencies and to increase the County’s cash collection activities. The Director will provide recommendations to increase the percentage of clean claims and reduce registration errors. The Director will also provide training and development for County’s revenue cycle employees by answering questions, offering recommendations, and performing quality assurance on work performed.
(iii) Project Director. Contractor will assign a Project Director, who will be on site during the Term of this Task Order. He or she will be responsible for managing the daily operations of the Billing and Collection Services and its Project Team. The Project Director will also be the liaison for Contractor with the County’s designated senior management team.
(iv) Project Team. Contractor will assign additional Assigned Personnel, as it deems appropriate, that will include supervisors, and billers and follow-up representatives, with experience in Medicare (Part A and B), Medi-Cal, Medi-Cal Health Maintenance Organization (“HMO”) programs, managed care (including California managed care payors), commercial insurance, and other third-party payors.
(d) Revenue Cycle Training. Contractor will provide onsite and web-based revenue cycle training of up to forty (40) hours for the County’s business office staff on a mutual agreed upon subject matter based on the patient accounting issues affecting reimbursement of claims, including but not limited to the following:
(i) customer service;
(ii) billing and follow-up techniques; and
(iii) resolution, research and analysis techniques.
3. County Responsibilities. In addition to its obligations in the Agreement, the County will provide and perform the following in order for Contractor to perform its obligations under this Task Order:
(a) Billing Information. The County shall provide Contractor with all billing information for the County including, but not limited to, the name of the patient, the date of service, the nature and extent of services provided, patient diagnosis, and any supporting medical and non-medical information necessary to bill such services and to perform the Billing and Collection Services. The County shall be responsible for appropriately coding the service provided, and applying the correct MS-DRG, CPT, HCPCS, ICD-9 or other codes associated with the service.
(b) Payment Information. The County will provide Contractor access to copies of any the County documentation or information necessary for Contractor to perform the Billing and Collection Services, which will include UB04s, CMS 1500s, EOBs, medical records, and certification and/or authorization information. The County will also provide to the onsite Assigned Personnel access to its patient accounting system via personal computers, at no charge to Contractor. The County shall also be responsible for producing and providing Contractor with any requested patient account system reports, and providing Contractor with copies of daily cash posting sheets.
(c) Aged Trial Balance Listing. On or before the Task Order Effective Date, the County shall provide Contractor an alphabetic trial balance listing of all Accounts as defined in Section (a) of Attachment B. The County will provide Contractor with collector codes or financial classes to organize the workflow, track payment, and other project activity. The collector codes or financial classes will be included in the daily payment reports to be provided to Contractor.
(d) VIP Accounts. The County will notify Contractor of any special instructions regarding handling of its Accounts, such as “VIP” Accounts to be excluded and other instructions it deems necessary to maintain public relations in the community.
(e) Uncollectible Accounts. The County will not knowingly assign any Accounts to Contractor that County has deemed to be uncollectible.
(f) Workspace Requirements. The County will furnish, at no charge to Contractor, adequate desks and chairs, personal computers, space, telephones, printers, letterhead, envelopes, postage, and other supplies deemed Data Request Worksheet to Contractor in order for Contractor to perform its obligations under this Task Order.
(g) RCPR Data Request Worksheet. On or before the Task Order Effective Date, the County will complete and return the RCPR Data Request Worksheet to Contractor in order for Contractor to perform its obligations under this Task Order.
(h) Assist with Scheduling. The County’s management will assist in scheduling the appropriate County’s staff for interviews conducted on site at the County for Consultant to gather additional information for the RCPR.
4. Payments:
(a) Service Fee – Billing and Collection Services. On or about the first of each month, Contractor will deliver an invoice to the County for a service fee (the “Service Fee”), which is calculated as fourteen and ninety-five hundredths percent (14.95%) on all payments or remittances posted by the County on Accounts during the prior month. The Service Fee is due and payable by the County on all such payments or remittances posted by the County commencing day fourteen (14) after the Task Order Effective Date and continuing until the earlier of the following to occur:
(i) thirty (30) days after the last day of the Term of this Task Order; or
(ii) the last day of the thirty (30) day period described in Section 5(b).
All invoices are due and payable in accordance with the terms of the Agreement.
(b) Changes in Service Fee. Contractor will provide the County sixty (60) days prior notice of any increase in the Service Fee. If the proposed increase is not acceptable to the County, the County may terminate this Task Order by providing Contractor with thirty (30) days prior written notice to Contractor.
(c) Initial Placement of Accounts. The Contractor Service Fee is based on the placement amount, financial class mix, aging of Accounts, and number of Accounts. Contractor may adjust the Service Fee percentage if the placement does not meet the minimum criteria described in Section (a) of Attachment B. If the County does not agree with the adjusted percentage, Contractor may terminate this Task Order without penalty by providing the County with written notice. The County warrants that any Accounts placed with Contractor are not currently and have not previously been placed with, or worked by other outside organizations.
5. Other Terms:
(a) Sole Source. Contractor will be the sole source vendor for placement of the Accounts described in Attachment B, other than placement by the County of its defaulted Accounts or bad debt accounts with its collection agency.
(b) Accounts Assigned Prior to Expiration or Termination. With respect to the expiration or termination of this Task Order in accordance with the terms of the Agreement, Contractor shall have the option to continue working Accounts assigned to Contractor on or before the expiration date or the effective date of such termination for thirty (30) days after such date. If Contractor chooses to continue to work the Accounts assigned as of the effective date of termination or expiration, Contractor will notify the County. During the thirty (30) day period, Contractor will invoice and the County will pay the applicable Service Fee on payments and remittances posted by the County on such Accounts during the thirty (30) day period in accordance with Section 4(a). Contractor will return any records on the Accounts to the County at the end of the thirty (30) day period, and upon such return, Contractor shall have no further obligation to the County with respect to such Accounts.
(c) Make Whole Cost. In the event that the County terminates this Task Order for any cause (other than a termination for breach) in accordance with Section 4 of the Agreement, the County will pay to Contractor the Make Whole Costs, if any, on or before the effective date of such termination. “Make Whole Costs” are limited to the reasonable, documented expenses to terminate apartment leases and furnishings incurred by Contractor. Make Whole Costs for terminating this Task Order shall not exceed ten thousand dollars ($10,000.00).
ATTACHMENT A
TO TASK ORDER EXHIBIT C-1
For Billing and Collection Services and RCPR
Onsite Billing and Collections Services Tasks
In addition to the Billing and Collection Services defined in Section 2(a) above, the Assigned Personnel will perform the following tasks for the accounts assigned during the Term of this Task Order to included, but not be limited to:
• Work the backlog of aged Accounts with specific focus on Medi-Cal through project work events
• Determine the status of each Account as it relates to contractual allowance, rejected status, rebilling requirements, responsibility of secondary and tertiary payors, completeness of documentation, accuracy of insurance and demographic information, and accomplish procedures required to obtain payment
• Bill any unbilled Account; correct and resubmit any rejected Account in which payment is due from a payor
• Edit Claims in accordance with payor specific billing requirements and County’s approval
• Late charge billing as deemed appropriate by the County
• UB04 and 1500 secondary and tertiary billing
• UB04 and 1500 rebilling as necessary to secure payment and/or resolution
• Patient detail bills on assigned Accounts, as requested
• Statements and/or approved letters to patients, as appropriate
• Apply appropriate follow-up work events for Medicare, Medi-Cal, Commercial, Managed Care and other third-party payors
• Investigate and resolve pending Accounts by contacting the insurance carrier, and as necessary, the physician and/or the insured
• Submit documentation necessary for payment to the responsible party, including, but not limited to, claims, itemized statements, pre-certification documents, and referrals
• Retroactive consent form completion
• Respond to patient inquiries related to billing and collection activity on assigned Accounts
• Prepare denied Accounts or episodes for appeal to the appropriate payor
• Monitor remittance advice and rejection rates for prompt payment and resolution of pending Accounts
• Evaluate problems and issues causing rejection or aging of Accounts and recommend solutions
ATTACHMENT B
TO TASK ORDER EXHIBIT C-1
For Billing and Collection Services and RCPR
Accounts Assigned to Contractor
During the Term of this Task Order, the County will assign the Accounts described below to Contractor:
(a) Initial Assignment of Accounts. On the Task Order Effective Date, the County will assign to Contractor all of its inpatient and outpatient third-party Accounts with balances greater than two hundred fifty dollars ($250.00) at day ninety (90) following discharge date or service date, excluding the following financial class codes: D-County Programs, J-Jail, N-County Indigent, U-Undetermined, W-Well Program, and Z-Local/State Fed. All of these Accounts will be worked by the Assigned Personnel located on site at the County. The estimated initial placement of Accounts is approximately $15 million in approximately 9,200 Accounts as shown in Exhibit D.
(b) Continued Assignment of Accounts Greater Than $250.00. After the initial assignment described in (a) above, for a period of six (6) months after the Task Order Effective Date, the County shall assign daily to Contractor all inpatient and outpatient third-party Accounts with balances greater than two hundred fifty dollars ($250.00) at day one hundred twenty (120) following discharge date or service date, excluding the following financial class codes: D-County Programs, J-Jail, N-County Indigent, U-Undetermined, W-Well Program, and Z-Local/State Fed. The foregoing Accounts will be worked by the Assigned Personnel located on site at the County.
ATTACHMENT C
TO TASK ORDER EXHIBIT C-1
For Billing and Collection Services and RCPR
Description of Revenue Cycle Performance Review
1. Overview. The RCPR will consist of a review of the County’s PA, HIM, and PFS departments. The RCPR will identify problematic components of the revenue cycle based on financial data analysis, utilizing Contractor’s proprietary diagnostic tools. The RCPR will also include a review of the current processes in relation to best practice processes.
2. Contractor Responsibilities: The Consultant assigned to the RCPR will be responsible for the following:
(a) Submit the detailed RCPR Data Request Worksheet to the County to be completed and returned prior to the start of the RCPR;
(b) Perform an offsite data analysis using the completed RCPR Data Request Worksheet;
(c) Prepare a benchmark analysis and develop a benefit forecast;
(d) Schedule a one day onsite visit at the County to conduct interviews with the County’s managers for PA, HIM, and PFS departments; and
(e) Provide the County with final executive summary and management action plan (“MAP”) to the County’s management to include recommendations based on the results of the RCPR.
ATTACHMENT D
TO TASK ORDER EXHIBIT C-1
For Billing and Collection Services and RCPR
Initial Assignment of Accounts
EXHIBIT C-2
TASK ORDER
BILLING AND COLLECTION SERVICES
OF LOW BALANCE INSURANCE
1. Term. The Term of this Task Order shall begin on , 2010 (“Task Order Effective Date”) and shall continue for an initial term of twenty-four (24) consecutive months (“Initial Term”); unless (i) earlier terminated in accordance with the Agreement; or (ii) the provisions of Sections 4(c), 4(d), or 5(c) below; or (iii) either party provides the other party with thirty (30) days written notice prior to the end of the Initial Term. The Initial Term is hereby referred as the “Term”.
In addition, in the event that Task Order Exhibit C-1 (“TO C-1”) is terminated for any reason at any time during the Term of this Task Order, Contractor shall have the option to terminate this Task Order Exhibit C-2 (“TO C-2”) by providing thirty (30) days prior written notice to the County.
2. Scope of Services. Contractor will perform the Services described below for the County’s facility, San Mateo Medical Center, consisting of billing, rebilling, follow-up and collection and including the tasks outlined in Attachment A for the County’s accounts receivable described in Attachment B that are assigned to Contractor from the County (“Accounts”). Contractor will provide the number of Assigned Personnel it deems appropriate to provide the Services from a Service Center (Assigned Personnel and Service Center are defined in Exhibit D to the Agreement). The Services are subject to the following:
(a) Length of Time Accounts to be Worked and Defaulted Accounts. All Accounts assigned to Contractor will be worked by Contractor in accordance with Attachment C until the earlier of the following to occur:
(i) the last day of the one hundred twenty (120) day period after the date of the assignment of the Account with Contractor, unless payment arrangements for an Account have already been secured by Contractor;
(ii) the last day of the thirty (30) day period set forth in Section 5(b)(i);
(iii) the last day of the sixty (60) day period described in Section 5(b)(ii); or
(iv) the day that Contractor determines the balance of the Account is not collectible and is therefore a Defaulted Account. For the purposes of this Task Order, a “Defaulted Account” is an Account that Contractor has unsuccessfully sought payment from any third-party payor that is responsible for charges from which the accounts receivable arises and unsuccessfully sought payment from the patient.
(b) Directing Payment on Accounts. Contractor will direct all payments on Accounts to the County. Any payments received by Contractor will be recorded and immediately forwarded to the County.
(c) Establishing Procedures. Contractor will work with the County to establish procedures for Contractor to return bad debts, adjustments and self pay balances, to the County.
(d) Monthly Reports. Contractor will provide the County with monthly management reports that will allow the County to track Contractor’s collection performance under this Task Order.
(e) Limitation of Contractor’s Duties. Contractor’s duties are limited to billing, rebilling, follow-up and collection based on information furnished by the County on the Accounts. Contractor does not take any responsibility for reviewing, correcting or confirming any information furnished by the County.
3. County Responsibilities. In addition to its obligations in the Agreement, the County will provide and perform the following in order for Contractor to perform its obligations under this Task Order:
(a) Billing Information. The County shall provide Contractor with all billing information for the County including, but not limited to, the name of the patient, the date of service, the nature and extent of services provided, patient diagnosis, and any supporting medical and non-medical information necessary to bill such services and to perform the Services. The County shall be responsible for appropriately coding the service provided, and applying the correct MS-DRG, CPT, HCPCS, ICD-9, or other codes associated with the service.
(b) Payment Information. The County will provide Contractor access to copies of any County documentation or information necessary for Contractor to perform the Services, which will include UB04s, CMS 1500s, EOBs, medical records, and certification and/or authorization information.
(c) Interface Development. On or before the Task Order Effective Date, Contractor will have developed and implemented an interface to receive the County’s accounts receivable assignments, payment information, account transactions, demographic information and notes. The County will provide Contractor with all data necessary to properly represent the County’s collection system including, but not limited to, demographic information, financial information, notes and insurance information. Data file(s) will be provided electronically by modem or secure Internet or other media pre-agreed to by both Contractor and the County. Data file(s) provided by the County will preferably be flat ASCII in any format the County chooses. Transmission of cash, adjustments, and charge data will be provided by the County electronically on a daily basis using the agreed to medium. The County will provide Contractor with a daily audit to assure the concurrency of balances between the County and Contractor.
(d) Daily and Weekly Requirements. The County shall provide Contractor with cash posting, charge data, notes, and demographic updates on a daily basis using agreed to electronic protocol and a weekly reconciliation to assure the concurrency of balances between the County’s patient accounting data and Contractor.
(e) Collection System. The County will provide Contractor with the necessary software and hardware at no charge to Contractor to ensure a secure and functioning connection to the County’s collection system (“Collection System”). Access to the Collection System will be provided by the County to Contractor from the Task Order Effective Date until the earlier of either of the following to occur:
(i) the last day of the thirty (30) day period described in Section 5(b)(i); or
(ii) the last day of the sixty (60) day period described in Section 5(b)(ii).
The access will be provided to Contractor by the County each business day and will not be denied for more than two (2) consecutive business days. If any interruption in such access is more than two (2) consecutive business days in duration, the County will arrange for other acceptable access to the Collection System. The County will provide Contractor the name and phone number of a contact to resolve any connection/network problems with the Collection System. The County will pay for any installation and/or maintenance of Contractor’s connection to Collection System, provided that Contractor will be responsible for any additional circuit charges if incurred.
(f) VIP Accounts. The County will notify Contractor of any special instructions regarding handling of its Accounts, such as "VIP" Accounts to be excluded and other instructions it deems necessary to maintain public relations in the community.
(g) Uncollectible Accounts. The County will not knowingly assign any Accounts to Contractor that County has deemed to be uncollectible.
(h) Workspace Requirements. If Contractor deems it necessary for the Assigned Personnel to obtain any information that may be needed for Contractor to secure payment on an assigned Account, County will furnish, at no charge to Contractor, adequate desks and chairs, personal computers, space, telephones, letterhead, envelopes, postage, and other supplies deemed necessary by Contractor to allow one (1) onsite Assigned Personnel to work effectively. All unused supplies and materials will be returned to the County upon the end of such personnel’s tenure at the County.
(i) Designated Employee. The County shall designate a County employee to remove Accounts from the classification of Contractor on the Collection System that Contractor has classified as closed. Contractor will provide the County with an electronic file of the closed Accounts in addition to a weekly and monthly all inclusive paper report.
4. Payments.
(a) Service Fee. On or about the first of each month, Contractor will deliver an invoice to the County for a service fee (the “Service Fee”), which is calculated as nineteen and ninety-seven hundredths percent (19.97%) on all payments or remittances posted by the County on Accounts during the prior month. The Service Fee is due and payable by the County on all such payments or remittances posted by the County commencing day one (1) after assignment of the Account to Contractor and will continue until the earlier of the following to occur:
(i) day one (1) after the Account is placed in a closed status on Contractor’s system;
(ii) the end of the thirty (30) day period described in Section 5(b)(i); or
(iii) the end of the sixty (60) day period described in Section 5(b)(ii).
All invoices are due and payable in accordance with the terms of the Agreement.
(b) Application of the Service Fee. Contractor will apply a Service Fee to all payments and remittances posted by the County (as indicated in the Collection System) on all Accounts for which Contractor is actively pursuing recovery regardless of the resulting or originating balance of the Account. Any corrections in the County postings, or corrections of credit balances, will be posted to Contractor’s collection system. A negative Service Fee may result if the transaction was originally posted with a positive Service Fee for Contractor.
(c) Changes in Service Fee. Contractor will provide the County sixty (60) days prior notice of any increase in the Service Fee. If the proposed increase is not acceptable to the County, the County may terminate this Task Order by providing Contractor with thirty (30) days prior written notice to Contractor. Contractor will continue to work Accounts assigned Contractor prior to the effective date of termination in accordance with Section 5(b)(i).
(d) Initial Placement of Accounts. The Contractor Service Fee is based on the placement amount, financial class mix, aging of Accounts, and number of Accounts. Contractor may adjust the Service Fee percentage if the placement does not meet the minimum criteria described in Section (a) of Attachment B. If the County does not agree with the adjusted percentage, Contractor may terminate this Task Order without penalty by providing the County with written notice. The County warrants that any Accounts placed with Contractor are not currently and have not previously been placed with, or worked by other outside organizations.
5. Other Terms.
(a) Sole Source. Contractor will be the sole source vendor for placement of the Accounts described in Attachment B, other than placement of Defaulted Accounts with the County’s collection agency by the County.
(b) Accounts Assigned Prior to Termination.
(i) Termination by the County for Increase in Service Fee. Upon the termination of this Task Order by the County in accordance with Section 4(c), Contractor will continue to work Accounts assigned to Contractor on or before the effective date of termination for thirty (30) days after the such date. Contractor will invoice and the County will pay the applicable Service Fee on payments and remittances posted by the County on such Accounts during the thirty (30) day period in accordance with Section 4(a). Contractor will return any records on the Accounts to the County at the end of the thirty (30) day period, and upon such return, Contractor shall have no further obligation to the County with respect to such Accounts.
(ii) Termination for any Other Reason. Upon the termination of this Task Order by either party in accordance with the Agreement (other than a termination by the County in accordance with Section 4(c), Contractor shall have the option to continue working Accounts assigned to Contractor on or before the effective date of termination for sixty (60) days after such date. If Contractor chooses to continue to work the Accounts assigned as of the effective date of termination, Contractor will notify the County. Contractor will invoice and the County will pay the applicable Service Fee on payments and remittances posted by the County on such Accounts during the sixty (60) day period in accordance with Section 4(a). Contractor will return any records on the Accounts to the County at the end of the sixty (60) day period, and upon such return, Contractor shall have no further obligation to the County with respect to such Accounts.
(c) Make Whole Cost. In the event that the County terminates this Task Order for any cause (other than a termination for breach) in accordance with Section 4 of the Agreement, the County will pay to Contractor the Make Whole Costs, if any, on or before the effective date of such termination. “Make Whole Costs” are limited to the reasonable, documented expenses to terminate apartment leases and furnishings incurred by Contractor. Make Whole Costs for terminating this Task Order shall not exceed ten thousand dollars ($10,000.00).
ATTACHMENT A
TO TASK ORDER EXHIBIT C-2
For Billing and Collection Services of Low Balance Insurance
Services Tasks
In addition to the Services defined in Section 2 above, the Assigned Personnel will perform the following tasks for the Accounts assigned during the Term of this Task Order to included, but not be limited to:
• Work the backlog of aged Accounts with specific focus on Medi-Cal through project work events
• Determine the status of each Account as it relates to contractual allowance, rejected status, rebilling requirements, responsibility of secondary and tertiary payors, completeness of documentation, accuracy of insurance and demographic information, and accomplish procedures required to obtain payment
• Bill any unbilled Account; correct and resubmit any rejected Account in which payment is due from a payor
• Edit Claims in accordance with payor specific billing requirements and County’s approval
• Late charge billing as deemed appropriate by the County
• UB04 and 1500 secondary and tertiary billing
• UB04 and 1500 rebilling as necessary to secure payment and/or resolution
• Patient detail bills on assigned Accounts, as requested
• Statements and/or approved letters to patients, as appropriate
• Apply appropriate follow-up work events for Medicare, Medi-Cal, Commercial, Managed Care and other third-party payors
• Investigate and resolve pending Accounts by contacting the insurance carrier, and as necessary, the physician and/or the insured
• Submit documentation necessary for payment to the responsible party, including, but not limited to, claims, itemized statements, pre-certification documents, and referrals
• Retroactive consent form completion
• Respond to patient inquiries related to billing and collection activity on assigned Accounts
• Prepare denied Accounts or episodes for appeal to the appropriate payor
• Monitor remittance advice and rejection rates for prompt payment and resolution of pending Accounts
• Evaluate problems and issues causing rejection or aging of Accounts and recommend solutions
ATTACHMENT B
TO TASK ORDER EXHIBIT C-2
For Billing and Collection Services of Low Balance Insurance
Accounts Assigned to Contractor
During the Term of this Task Order, the County will assign the Accounts described below to Contractor:
(a) Assignment of Third-Party Accounts. The County will assign daily to Contractor ongoing placements of all its inpatient and outpatient Third-Party Accounts with balances between five dollars ($5.00) to two hundred fifty dollars ($250.00) at day one (1) following discharge date or service date, excluding the following financial class codes: D-County Programs, J-Jail, N-County Indigent, U-Undetermined, W-Well Program, and Z-Local/State Fed. If Contractor identifies self pay in the assigned third-party balances, Contractor will bill and follow through with the self pay recovery. The estimated initial assignment of Accounts is approximately $2.5 million in approximately 18,500 Accounts.
(b) Assignment of Credit Balance Accounts. The County will assign to Contractor a one-time placement of approximately six hundred (600) credit balance accounts at the County’s balance threshold discretion.
ATTACHMENT C
TO TASK ORDER EXHIBIT C-2
For Billing and Collection Services of Low Balance Insurance
Matrix for working third-party accounts balances $5.00 to $250.00 at time of placement
Contractor will work Accounts utilizing the collection matrix below. Contractor reserves the right to change the collection matrix based upon Contractor’s resolution and Contractor’s collection of payments on assigned Accounts.
EXHIBIT C-3
TASK ORDER
BILLING AND COLLECTION SERVICES
OF SELF PAY
1. Term. The Term of this Task Order shall begin on , 2010 (“Task Order Effective Date”) and shall continue for an initial term of twenty-four (24) consecutive months (“Initial Term”); unless (i) earlier terminated in accordance with the Agreement; or (ii) the provisions of Sections 4(c), 4(d), or 5(c) below; or (iii) either party provides the other party with thirty (30) days written notice prior to the end of the Initial Term. The Initial Term is hereby referred as the “Term”.
2. Scope of Services. Contractor will perform the Services described below for the County’s facility, San Mateo Medical Center, consisting of billing, rebilling, follow-up and collection for the County’s accounts receivable described in Attachment A that are assigned to Contractor from the County (“Accounts”). Contractor will provide the number of Assigned Personnel it deems appropriate to provide the Services from a Service Center (Assigned Personnel and Service Center are defined in Exhibit D to the Agreement). The Services are subject to the following:
(a) Length of Time Accounts to be Worked and Defaulted Accounts. All Accounts assigned to Contractor will be worked by Contractor until the earlier of the following to occur:
(i) the last day of the one hundred twenty (120) day period after the date of the assignment of the Account with Contractor, unless payment arrangements for an Account have already been secured by Contractor;
(ii) the last day of the thirty (30) day period set forth in Section 5(b)(i);
(iii) the last day of the sixty (60) day period described in Section 5(b)(ii); or
(iv) the day that Contractor determines the balance of the Account is not collectible and is therefore a Defaulted Account. For the purposes of this Task Order, a “Defaulted Account” is an Account that Contractor has unsuccessfully sought payment from any third-party payor that is responsible for charges from which the accounts receivable arises and unsuccessfully sought payment from the patient.
(b) Directing Payment on Accounts. Contractor will direct all payments on Accounts to the County. Any payments received by Contractor will be recorded and immediately forwarded to the County.
(c) Establishing Procedures. Contractor will work with the County to establish procedures for Contractor to return bad debts, adjustments and self pay balances, to the County.
(d) Monthly Reports. Contractor will provide the County with monthly management reports that will allow the County to track Contractor’s collection performance under this Task Order.
(e) Limitation of Contractor’s Duties. Contractor’s duties are limited to billing, rebilling, follow-up and collection based on information furnished by the County on the Accounts. Contractor does not take any responsibility for reviewing, correcting or confirming any information furnished by the County.
(f) Scoring and Account Segmentation. Contractor will utilize a third-party service to score qualifying Accounts in order to segregate accounts into discrete segments based upon a patient's propensity to make payment on such Account. Each segment will utilize a unique workflow as described in Attachment B.
3. County Responsibilities. In addition to its obligations in the Agreement, the County will provide and perform the following in order for Contractor to perform its obligations under this Task Order:
(a) Billing Information. The County shall provide Contractor with all billing information for the County including, but not limited to, the name of the patient, the date of service, the nature and extent of services provided, patient diagnosis, and any supporting medical and non-medical information necessary to bill such services and to perform the Services. The County shall be responsible for appropriately coding the service provided, and applying the correct MS-DRG, CPT, HCPCS, ICD-9, or other codes associated with the service.
(b) Payment Information. the County will provide Contractor access to copies of any County documentation or information necessary for Contractor to perform the Services, which will include UB04s, CMS 1500s, EOBs, medical records, and certification and/or authorization information.
(c) Interface Development. On or before the Task Order Effective Date, Contractor will have developed and implemented an interface to receive the County’s accounts receivable assignments, payment information, account transactions, demographic information and notes. The County will provide Contractor with all data necessary to properly represent the County’s collection system including, but not limited to, demographic information, financial information, notes and insurance information. Data file(s) will be provided electronically by modem or secure Internet or other media pre-agreed to by both Contractor and the County. Data file(s) provided by the County will preferably be flat ASCII in any format the County chooses. Transmission of cash, adjustments, and charge data will be provided by the County electronically on a daily basis using the agreed to medium. The County will provide Contractor with a daily audit to assure the concurrency of balances between the County and Contractor.
(f) Daily and Weekly Requirements. The County shall provide Contractor with cash posting, charge data, notes, and demographic updates on a daily basis using agreed to electronic protocol and a weekly reconciliation to assure the concurrency of balances between the County’s patient accounting data and Contractor.
(g) Collection System. The County will provide Contractor with the necessary software and hardware at no charge to Contractor to ensure a secure and functioning connection to the County’s collection system (“Collection System”). Access to the Collection System will be provided by the County to Contractor from the Task Order Effective Date until the earlier of either of the following to occur:
(i) the last day of the thirty (30) day period described in Section 5(b)(i); or
(ii) the last day of the sixty (60) day period described in Section 5(b)(ii).
The access will be provided to Contractor by the County each business day and will not be denied for more than two (2) consecutive business days. If any interruption in such access is more than two (2) consecutive business days in duration, the County will arrange for other acceptable access to the Collection System. The County will provide Contractor the name and phone number of a contact to resolve any connection/network problems with the Collection System. The County will pay for any installation and/or maintenance of Contractor’s connection to Collection System, provided that Contractor will be responsible for any additional circuit charges if incurred.
(f) VIP Accounts. the County will notify Contractor of any special instructions regarding handling of its Accounts, such as "VIP" Accounts to be excluded and other instructions it deems necessary to maintain public relations in the community.
(g) Uncollectible Accounts. the County will not knowingly assign any Accounts to Contractor that the County has deemed to be uncollectible.
(h) Workspace Requirements. If Contractor deems it necessary for the Assigned Personnel to obtain any information that may be needed for Contractor to secure payment on an assigned Account, the County will furnish, at no charge to Contractor, adequate desks and chairs, personal computers, space, telephones, letterhead, envelopes, postage, and other supplies deemed necessary by Contractor to allow one (1) onsite Assigned Personnel to work effectively. All unused supplies and materials will be returned to the County upon the end of such personnel’s tenure at the County.
(i) Designated Employee. The County shall designate a County employee to remove Accounts from the classification of Contractor on the Collection System that Contractor has classified as closed. Contractor will provide the County with an electronic file of the closed Accounts in addition to a weekly and monthly all inclusive paper report.
4. Payments.
(a) Service Fee. On or about the first of each month, Contractor will deliver an invoice to the County for a service fee (the “Service Fee”), which is calculated as six and eighty-one hundredths percent (6.81%) on all payments or remittances posted by the County on Accounts during the prior month. The Service Fee is due and payable by the County on all such payments or remittances posted by the County commencing day one (1) after assignment of the Account to Contractor and will continue until the earlier of the following to occur:
(i) day one (1) after the Account is placed in a closed status on Contractor’s system;
(ii) the end of the thirty (30) day period described in Section 5(b)(i); or
(iii) the end of the sixty (60) day period described in Section 5(b)(ii).
All invoices are due and payable in accordance with the terms of the Agreement.
(b) Application of the Service Fee. Contractor will apply a Service Fee to all payments and remittances posted by the County (as indicated in the Collection System) on all Accounts for which Contractor is actively pursuing recovery regardless of the resulting or originating balance of the Account. Any corrections in County postings, or corrections of credit balances, will be posted to Contractor’s collection system. A negative Service Fee may result if the transaction was originally posted with a positive Service Fee for Contractor.
(c) Changes in Service Fee. Contractor will provide the County sixty (60) days prior notice of any increase in the Service Fee. If the proposed increase is not acceptable to the County, the County may terminate this Task Order by providing Contractor with thirty (30) days prior written notice to Contractor. Contractor will continue to work Accounts assigned Contractor prior to the effective date of termination in accordance with Section 5(b)(i).
(d) Initial Placement of Accounts. The Contractor Service Fee is based on the placement amount, financial class mix, aging of Accounts, and number of Accounts. Contractor may adjust the Service Fee percentage if the placement does not meet the minimum criteria described in Section (a) of Attachment A. If the County does not agree with the adjusted percentage, Contractor may terminate this Task Order without penalty by providing the County with written notice. The County warrants that any Accounts placed with Contractor are not currently and have not previously been placed with, or worked by other outside organizations.
5. Other Terms.
(a) Sole Source. Contractor will be the sole source vendor for placement of the Accounts described in Attachment A, other than placement of Defaulted Accounts with the County’s collection agency by the County.
(b) Accounts Assigned Prior to Termination.
(i) Termination by the County for Increase in Service Fee. Upon the termination of this Task Order by the County in accordance with Section 4(c), Contractor will continue to work Accounts assigned to Contractor on or before the effective date of termination for thirty (30) days after the such date. Contractor will invoice and the County will pay the applicable Service Fee on payments and remittances posted by the County on such Accounts during the thirty (30) day period in accordance with Section 4(a). Contractor will return any records on the Accounts to the County at the end of the thirty (30) day period, and upon such return, Contractor shall have no further obligation to the County with respect to such Accounts.
(ii) Termination for any Other Reason. Upon the termination of this Task Order by either party in accordance with the Agreement (other than a termination by the County in accordance with Section 4(c), Contractor shall have the option to continue working Accounts assigned to Contractor on or before the effective date of termination for sixty (60) days after such date. If Contractor chooses to continue to work the Accounts assigned as of the effective date of termination, Contractor will notify the County. Contractor will invoice and the County will pay the applicable Service Fee on payments and remittances posted by the County on such Accounts during the sixty (60) day period in accordance with Section 4(a). Contractor will return any records on the Accounts to the County at the end of the sixty (60) day period, and upon such return, Contractor shall have no further obligation to the County with respect to such Accounts.
(c) Make Whole Cost. In the event that the County terminates this Task Order for any cause (other than a termination for breach) in accordance with Section 4 of the Agreement, the County will pay to Contractor the Make Whole Costs, if any, on or before the effective date of such termination. “Make Whole Costs” are limited to the reasonable, documented expenses to terminate apartment leases and furnishings incurred by Contractor. Make Whole Costs for terminating this Task Order shall not exceed ten thousand dollars ($10,000.00).
ATTACHMENT A
TO TASK ORDER EXHIBIT C-3
For Billing and Collection Services of Self Pay
Accounts Assigned to Contractor
During the Term of this Task Order, the County will assign the Accounts described below to Contractor:
(a) Assignment of Self Pay Accounts. The County will assign daily to Contractor ongoing placements of all its inpatient and outpatient Self Pay Accounts, excluding the following financial class codes: N-County Indigent, and U-Undetermined; with balances five dollars ($5.00) and above at day one (1) following discharge date or service date, or resolution of third-party balances; and day one (1) following payment date by primary and/or secondary insurance. If Contractor identifies third-party insurance in assigned self pay balances, Contractor will bill and follow through with the insurance recovery. The estimated initial assignment of Accounts is approximately $9.4 million in approximately 8,200 Accounts.
ATTACHMENT B
TO TASK ORDER EXHIBIT C-3
For Billing and Collection Services of Self Pay
Sample Self Pay Segmentation Work Matrix
EXHIBIT D
COUNTY’S RIGHTS
1. Defined Terms:
(a) “Assigned Personnel” means employees and subcontractors of Contractor who are assigned to contact patients and/or payors on behalf of County in connection with County’s accounts receivable and the employees of Contractor who supervise them, without regard to whether such personnel are present at County facilities or are providing the Services from a Service Center.
(b) “Policies” means the County’s facility, San Mateo Medical Center’s policies and procedures that govern the contacts on behalf of County by the Assigned Personnel. The Policies as of the Effective Date are set forth in Attachment 1 to this Exhibit D. County will provide Contractor with updates to the Policies in a timely manner.
(c) “Service Center” means any facility (other than a facility owned, operated or otherwise provided by County) used by Contractor to contact County patients and payors.
2. Policies Governing Contacts. County and Contractor agree that the Policies set forth in Attachment 1 to this Exhibit D will govern contacts on behalf of County by the Assigned Personnel. In the event that County desires to change the Policies, County will consult with Contractor regarding the proposed changes. Following such consultation, Contractor will make such changes in the Policies as may be reasonably requested by County (unless Contractor reasonably believes that such change would result in a violation of law).
3. Rights with Respect to Assigned Personnel. At the request of County, representatives of County will have the right to interview any and all of the Assigned Personnel and/or prospective Assigned Personnel. If County requests, after consultation with Contractor, that one or more of the Assigned Personnel be removed from a position contacting County’s patients and/or payors, Contractor will promptly remove such Assigned Personnel (unless Contractor reasonably believes that such removal has been requested for reasons that would result in a violation of law).
4. Rights to Approve Materials. Contractor will provide County, at least five business days (or such shorter time as Contractor and County agree) prior to use, with copies of (i) forms of correspondence to be used by Assigned Personnel to communicate with County’s patients and payors and (ii) scripts to be used to by Assigned Personnel to contact County’s patients and payors. In the event that County desires to change any form of correspondence or any script, County will consult with Contractor regarding the proposed changes.
5. Rights of Inspection and Monitoring. Contractor will provide County with the opportunity to monitor contacts made by the Assigned Personnel with County’s patients and payors, which rights will include the following:
(a) Inspection of Service Centers. Upon reasonable notice and at reasonable times (including any times during which Assigned Personnel are scheduled to be contacting County’s patients and/or payors), Contractor will permit County to inspect its operations at any Service Center, subject to reasonable measures taken by Contractor to protect the confidentiality of information relating to its other customers.
(b) Inspection of Records. Upon reasonable notice, Contractor will provide County with access to all records of Contractor relating to County’s receivables, including all paper records and records maintained on Contractor’s computer systems relating to contacts with County’s patients and payors.
(c) Monitoring Onsite Personnel. With respect to Assigned Personnel working at any facility owned, operated or otherwise provided by County for use by the Assigned Personnel, County shall have the right to monitor calls made on behalf of the County either in person or through the use of County’s monitoring equipment.
(d) Monitoring Service Center Operations. In addition to the rights of inspection set forth in Section 5(a), Contractor shall make available to County access to Contractor’s equipment to monitor calls being made from the Service Center on behalf of County under this Agreement. Contractor shall make such access available at such times as the Assigned Personnel are contacting County’s patients and payors.
6. Control of Assigned Personnel; Employment Relationship. Contractor and County agree that (i) the Assigned Personnel are to act as if they were employees of County with respect to their interactions with patients and payors of County and (ii) the purpose of this Section 6 is to give County the same degree of control over the Assigned Personnel with respect to contacts with County’s patients and payors as County has over its own employees engaged in such contacts. With respect to all other matters, Contractor shall have complete control of all of its employees. Notwithstanding any other provision of this Agreement, the Assigned Personnel shall be employees of Contractor and shall not be employees of County. Contractor shall be solely responsible for payroll, tax withholding, employee benefits, and all other matters related to the employment of the Assigned Personnel. Contractor shall indemnify and hold County harmless for any and all losses that may be incurred by County in the event that the Assigned Personnel are deemed to be employees of County.
ATTACHMENT 1
To
EXHIBIT D
POLICIES
(Please attach the County’s facility, San Mateo Medical Center’s
Patient Credit & Collection Policies)
EXHIBIT E
HIPAA and HITECH ACT Obligations
Any capitalized terms used in this Exhibit E that are not defined herein shall have the meaning ascribed to them in Health Insurance Portability and Accountability Act of 1996 as contained in 45 CFR parts 160, 162 and 164 (“HIPAA”) and Subtitle D (Privacy) of Title XIII of Division A and Section 4104(b) of Title IV of Division B of the American Recovery and Reinvestment Act of 2009 (the “HITECH Act”).
In order for Perot Systems Revenue Cycle Solutions, Inc. (“Contractor”) to provide Services to County of San Mateo (“County”) under the Agreement that require access to Protected Health Information, the parties agree to the following terms related to the HIPAA federal privacy regulations contained in 45 C.F.R. parts 160 and 164 (“HIPAA Privacy Regulations”), the HIPAA federal security standards contained in 45 C.F.R. parts 160 and 164 (“HIPAA Security Regulations”), the HIPAA federal standards for electronic transactions contained in at 45 C.F.R. parts 160 and 162 (“HIPAA Transaction Regulations”) and the HITECH Act.
1. Contractor is permitted to use and disclose Protected Health Information received or created by Contractor from or on behalf of County (“PHI”) as required to perform its obligations under the Agreement. Contractor may also (a) use PHI for the proper management and administration of Contractor or to carry out the legal responsibilities of Contractor; and (b) disclose PHI for the proper management and administration of Contractor or to carry out the legal responsibilities of Contractor if (i) the disclosure is Required by Law; or (ii) Contractor obtains reasonable written assurances from the person to whom it disclosed the PHI that it will remain confidential and used or further disclosed only as Required by Law or for the purpose for which it was disclosed to the person, and the person notifies Contractor of any instances of which it is aware in which the confidentiality of the PHI has been breached.
2. Contractor shall use and disclose PHI only as permitted or required by the Agreement (including this Exhibit E) or as Required by Law.
3. Contractor may disclose PHI to its agents, subcontractors and representatives solely for those purposes set forth in Section 1 of this Exhibit E only if such agents, subcontractors and representatives
agree in writing to be bound by and comply with restrictions and conditions that are substantially similar in all material respects to the restrictions and conditions regarding PHI that apply through this Exhibit E to Contractor. If Contractor uses its affiliates to provide any of the services, Contractor is not required to obtain written assurances from such affiliates or its employees; provided, however, Contractor shall be responsible for any actions or inactions of such affiliates and their employees in violation of Contractor’ obligations under this Exhibit E.
4. When Contractor has possession of PHI, is accessing PHI, or is transmitting Electronic PHI, it shall (a) use appropriate safeguards as required by the HIPAA Privacy Regulations to prevent the use or disclosure of PHI otherwise than as permitted or required under this Exhibit E; and (b) with respect to Electronic PHI, implement administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of Electronic PHI as required by, and as more specifically set forth in, the HIPAA Security Regulations. Notwithstanding the foregoing, when Contractor is present at a facility of County or its affiliates or is accessing or utilizing a system owned, leased or licensed by County or its affiliates (“County Systems”), Contractor will comply with County’s standard safeguards to prevent the use or disclosure of PHI (including County’s standard administrative, physical and technical safeguards to protect the confidentiality, integrity and availability of Electronic PHI) applicable to such County facility or such County System, provided County has given Contractor prior notice of such safeguards in writing or in the same manner as County provides notice of such safeguards to its own employees and other contractors.
5. Contractor shall report to County (a) any use or disclosure of PHI by Contractor in violation of its obligations under this Exhibit E of which it becomes aware; and (b) any Security Incident relating to Electronic PHI of which it becomes aware. “Security Incident” does not include trivial incidents that occur on a frequent basis, such as scans, “pings” or unsuccessful attempts to penetrate computer networks or servers. Beginning on the compliance date of 45 C.F.R. § 164.410, Contractor shall, following the discovery of a Breach of Unsecured PHI, notify Covered Entity of such Breach in accordance with such Section 164.410.
6. Contractor shall make its internal practices, books and records relating to the use and disclosure of PHI available to the Secretary, in a time and manner designated by the Secretary, for purposes of the Secretary determining County’s compliance with HIPAA.
7. Contractor and County agree that the Services under the Agreement will not involve Contractor maintaining any PHI.
8. Contractor shall document disclosures of PHI it makes and information related to such disclosures as would be required for County to respond to a request by an Individual for an accounting of such disclosures in accordance with 45 CFR § 164.528; provided, however, with respect to disclosures made at the request of County or by Contractor as part of the services under the Agreement or; County shall provide Contractor with notice of the requirement to document such disclosures and access to the system it utilizes to record and track disclosures required by 45 CFR § 164.528, and Contractor will use such system to track such disclosures. Upon Contractor’ receipt of written notice from County that County has received a request for an accounting of disclosures of PHI regarding an Individual, Contractor shall make available to County the information collected by it as described above to permit County to respond to such request in accordance with 45 CFR § 164.528.
9. As described in 45 C.F.R. § 164.502(b)(1), when using or disclosing PHI or when requesting PHI from County (except for the uses and disclosures described in 45 C.F.R. § 164.502(b)(2)), Contractor will make reasonable efforts to limit PHI to the minimum necessary to accomplish the intended purpose of the use, disclosure, or request. Contractor shall be treated as being in compliance with 45 C.F.R. § 164.502(b)(1) with respect to the use, disclosure, or request of PHI described in such section, only if Contractor limits such PHI, to the extent practicable, to the limited data set (as defined 45 C.F.R. § 164.514(e)(2)) or, if needed by Contractor, to the minimum necessary to accomplish the intended purpose of such use, disclosure, or request, respectively.
10. Contractor shall mitigate, to the extent practicable, any harmful effect that is known to it of a use or disclosure of PHI by Contractor in violation of its obligations set forth in this Exhibit E.
11. County shall obtain and maintain such consents, authorizations and/or permissions, if any, as may be necessary or required under HIPAA or other local, state or federal laws or regulations to permit County to disclose PHI to Contractor in order for Contractor to use and disclose PHI as required or permitted under this Exhibit E. County shall promptly inform Contractor in writing as soon as County becomes aware of any modifications to, restrictions on, defects in, or revocation or other termination of effectiveness of, any such consent, authorization or permission, to the extent any such modifications, restrictions, defects, revocations or terminations affect Contractor’ permitted or required uses and disclosures of PHI specified in this Exhibit E.
12. County shall notify Contractor in writing of any limitation(s) in its notice of privacy practices in accordance with 45 CFR § 164.520, to the extent any such limitations affect Contractor’ permitted or required uses and disclosures of PHI specified in this Exhibit E.
13. County shall notify Contractor in writing of any restriction(s) to the use or disclosure of PHI that County has agreed to in accordance with 45 CFR § 164.522, to the extent any such restrictions affect Contractor’ permitted or required uses and disclosures of PHI specified in this Exhibit E.
14. To the extent the services involve Contractor assisting County in conducting electronic transactions governed by the HIPAA Transaction Regulations, unless otherwise set forth in the Agreement or instructed by County, Contractor shall not: (a) change the definition, data, condition, or use of a data element or segment in a standard as required by 45 CFR § 162.915; (b) add any data elements or segments to the maximum defined data set as required by 45 CFR § 162.915; (c) use any code or data elements that are either marked “not used” in the standard’s implementation specification or are not in the standard’s implementation specification(s) as required by 45 CFR § 162.915; or (d) change the meaning or intent of the standard’s implementation specification(s) as required by 45 CFR § 162.915.
15. This Exhibit E shall commence on the Effective Date and shall automatically terminate on the expiration or termination of the Agreement.
16. If Contractor commits a material breach of its obligations in this Exhibit E, County may (a) terminate the Agreement (and this Exhibit E) by providing Contractor prior written notice if Contractor fails to cure such breach within 30 days of its receipt of written notice from County specifying the nature of such breach; (b) immediately terminate the Agreement (and this Exhibit E) by providing Contractor prior written notice if a cure of such breach is not possible; or (c) report such breach to the Secretary if termination of the Agreement is not feasible.
17. As required by Section 13404(b) of the HITECH Act, upon Contractor knowledge of a material breach of County’s obligations set forth in this Exhibit by County, its affiliates or their respective employees, subcontractors, agents or representatives, Contractor may (a) terminate the Agreement (and this Exhibit) by providing County prior written notice if County fails to cure such breach within thirty (30) days of its receipt of written notice from Contractor specifying the nature of such breach; (b) immediately terminate the Agreement (and this Exhibit) by providing County prior written notice if a cure of such breach is not possible; or (c) report such breach to the Secretary if termination of the Agreement is not feasible.
18. Upon the termination of this Exhibit E for any reason, Contractor shall return or destroy all PHI in the possession of Contractor, its affiliates or their respective subcontractors; and neither Contractor, nor its affiliates or their respective subcontractors shall retain copies of such PHI; provided, however, if returning or destroying such PHI is infeasible, (a) Contractor shall provide County notification of the conditions that make return or destruction infeasible; and (b) Contractor shall extend the protections of this Exhibit E to such PHI and limit further uses and disclosures of such PHI to those purposes that make the return or destruction infeasible for so long as such PHI is maintained by Contractor.
19. The references to the provisions and sections of HIPAA and the HITECH Act in this Exhibit E specifically refer to such provisions and sections as of the Effective Date, and do not include any amendments or changes to such provisions or sections enacted after the Effective Date or any guidance issued by a governmental entity after the Effective Date of the Agreement (including guidance issued pursuant to the HITECH Act). If any final amendments to HIPAA are enacted, or any guidance issued, after the Effective Date of the Agreement, to the extent such amendments or guidance require modifications to the then-current HIPAA compliance obligations of County or Contractor under this Exhibit E, County and Contractor agree to promptly meet and negotiate in good faith to mutually agree on such modifications. Any material modifications to Contractor’ obligations under this Exhibit E may include changes in financial terms as reasonably required to support such cost of compliance.
20. This Exhibit E (a) constitutes an amendment to, and is incorporated into, the Agreement; and (b) is subject to the terms and conditions of the Agreement; provided, however, if there is any conflict between the terms of this Exhibit E and the terms of the Agreement with respect to the matters covered in this Exhibit E, the terms of this Exhibit E shall control.
EXHIBIT F-1
Sample Executive Management Reports
Please see attached sample onsite executive management reports.
EXHIBIT F-2
Sample Executive Management Reports
Please see attached sample EBO executive management reports.
EXHIBIT G |
CORPORATE COMPLIANCE SMMC CODE OF CONDUCT (THIRD PARTIES) |
The person/entity listed below (the “Undersigned”) recognizes and is fully dedicated to advancing SMMC’s commitment to full compliance with all Federal, State, and other governmental health care program requirements, including its commitment to prepare and submit accurate claims consistent with such requirements. |
The Undersigned will comply with all Federal, State or other governmental health care program requirements and with SMMC’s policies and procedures relating to SMMC’s Corporate Compliance Program, including the requirements set forth in the Corporate Integrity Agreement (CIA) to which SMMC is a party (available online at http:// oig.hhs.gov/fraud/cia/agreements/the_county_of_san_mateo_03062009.pdf). |
The Undersigned, to the extent its contractual duties require it to submit the reports covered in this paragraph, will promptly submit accurate information for Federal health care cost reports including, but not limited to, the requirement to submit accurate information regarding acute available bed count for Disproportionate Share Hospital (DSH) payment. |
The Undersigned will report to the SMMC Compliance Officer any suspected violation of any Federal health care program requirements or of SMMC’s Compliance Program policies and procedures. |
The Undersigned has the right to use the SMMC Disclosure Program by calling the Compliance Hotline or reporting incidents to the Compliance Officer. SMMC is committed to non-retaliation and will maintain, as appropriate, confidentiality and anonymity with respect to such disclosures. |
The Undersigned understands that non-compliance with Federal health care program requirements and SMMC’s Compliance Program policies and procedures, and failing to report such violations, could result in termination of the Agreement and/or any other penalties permitted by law. |
The Undersigned is responsible for acquiring sufficient knowledge to recognize potential compliance issues applicable to the duties outlined in the Agreement and for appropriately seeking advice regarding such issues. |
The Undersigned will not offer, give or accept any bribe, payment, gift, or thing of value to any person or entity with whom SMMC has or is seeking any business or regulatory relationship in relation to said business or regulatory relationship (other than payments authorized by law under such relationships). The Undersigned will promptly report the offering or receipt of such gifts to the SMMC Compliance Officer. |
The Undersigned will not engage in any financial, business, or other activity which competes with SMMC/County business which may interfere or appear to interfere with the performance of the duties under the Agreement or that involve the use of SMMC/County property, facilities, or resources, except to the extent consistent with the SMMC/County Incompatible Activities and Outside Employment policy and the Agreement. |
The Undersigned will cooperate fully and honestly with internal audits and monitoring programs to help assure that SMMC’s compliance is maintained with all applicable federal/state regulations, the Joint Commission standards, and hospital system-wide policies. |
TO REPORT VIOLATIONS, CALL THE COMPLIANCE HOT LINE: (800) 965-9775 |
The Undersigned hereby certifies by signing below that an authorized representative has received this Code of Conduct, understands it, has authority to commit the Undersigned to this Code of Conduct, and hereby commits the Undersigned to comply with this Code of Conduct. |
Name of Person/Entity (the “Undersigned”) Signature and Printed Name Date |