HomeMy WebLinkAboutIR 25-0067INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0067
a
11575
PURPOSE:
To the Mayor and Members of the City Council
June 3, 2025
Page 1 of 2
SUBJECT: MEDSTAR TRANSITIONAL MEDICAL SERVICES-
MEDICAID/MEDICARE BILLING
On June 241", the City Council will consider an M&C to authorize execution of an interlocal
agreement with the Metropolitan Area EMS Authority d/b/a MedStar Mobile Healthcare ("MedStar")
authorizing MedStar to continue to provide EMS System services under the management and
control of Fort Worth for a temporary period. The purpose of this informal report is to explain the
necessity for the interlocal agreement and provide Council the opportunity to ask questions related
to the operation of the EMS System pursuant to the interlocal agreement.
BACKGROUND:
Fort Worth and certain other local jurisdictions ("Member Cities") were parties to a Restated and
Amended Interlocal Cooperative Agreement effective July 23, 2020 (the "ILA") for the provision of
out of hospital emergency medical services ("EMS"), non -emergency medical services,
unscheduled medical transportation and ambulance service, mobile integrated healthcare ("MIH")
(collectively the "EMS System"), and scheduled interfacility medical transportation ("IFT").
In accordance with the directives of the Fort Worth City Council, and the recommendations of the
Emergency Services Ad Hoc Committee, Fort Worth and the Member Cities executed a
Memorandum of Understanding and Agreement ("MOUA"), identified as City Secretary Contract
No. 62555, to, among other things, officially: dissolve MedStar; transfer MedStar's assets and
liabilities to Fort Worth; and establish a new EMS System operated by Fort Worth. Since the
execution of the MOUA, Fort Worth has executed individual EMS Interlocal Agreements with each
Member City and, a new addition to the EMS System, Richland Hills. The EMS Interlocal
Agreements, in conjunction with a uniform EMS ordinance adopted by Fort Worth and each
Member City, designates Fort Worth as the exclusive provider of EMS System services in each
party's jurisdiction to be effective July 1, 2025.
The parties to the MOUA anticipated that the period between execution of the MOUA, the
withdrawal from the ILA, the transition of EMS System services to Fort Worth as the EMS Provider,
and the complete dissolution of MedStar may create some operational and practical complications
for the EMS System, IFT, and the associated services for the Parties. Therefore, Fort Worth and
the Member Cities agreed that MedStar would maintain its legal status as a governmental
administrative agency and continue to operate under the direct management and oversight of Fort
Worth during a transition period. During this transition period, the MOUA authorized MedStar to
operate certain temporary functions under the management of Fort Worth to ensure continuity in
billing, collections, and other operational areas as needed, and further authorized Fort Worth to
take all necessary actions to ensure the continued operation and administration of the EMS System
services to all parties, such as maintaining or renewing any required licenses, permits, or
registrations for the EMS System services.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0067
a
11575
To the Mayor and Members of the City Council
June 3, 2025
Page 2 of 2
SUBJECT: MEDSTAR TRANSITIONAL MEDICAL SERVICES-
MEDICAID/MEDICARE BILLING
ILA WITH MEDSTAR:
To facilitate the transition of EMS System services from MedStar to Fort Worth, Fort Worth has
acquired its EMS Provider license and is actively adopting necessary policies, hiring and training
staff, acquiring property, contracting with necessary vendors, and registering with necessary
agencies to become the exclusive EMS System provider for Fort Worth and the Member Cities. To
date, Fort Worth is awaiting final confirmation of its Medicaid national EMS -ID, but has obtained its
Medicare registration and state Iicensure.
To ensure there is no lapse in service, or delay in billing and collections that may unreasonably
impact the EMS System as services transition to Fort Worth, and to protect the public health and
safety of the people of Fort Worth and the Member Cities' jurisdictions, there is a necessity for Fort
Worth to subcontract with MedStar to temporarily operate the EMS System and provide services
through MedStar's state licensing and registration numbers.
This arrangement will allow MedStar, under the direct management and control of Fort Worth, to
continue EMS System operations with Fort Worth personnel, property, and equipment, as of July
1, 2025. This arrangement ensures that staff may smoothly transition its policies and practices and
any unexpected delay in obtaining Fort Worth's final registrations with appropriate state and federal
agencies will not impact EMS System operations.
Pursuant to the terms of the proposed interlocal agreement with MedStar, MedStar will serve as
the licensed EMS Provider and retain regulatory responsibility for compliance with state EMS
requirements. The agreement authorizes Fort Worth to manage and staff the EMS System and
authorizes Fort Worth to bill for EMS System services on MedStar's behalf. MedStar, as the
licensed EMS Provider, will lease Fort Worth equipment and personnel, to provide full EMS System
services including ALS, BLS, emergency and non -emergency transport, MIH, and 911 call
responses. MedStar's Medicare and Medicaid enrollment records will be amended within thirty (30)
days of the effective date of the Agreement to add Forth Worth as an organization with managing
control of MedStar, to add Fort Worth's third party billing company as the billing agent for MedStar,
and to add all vehicles Fort Worth is leasing to MedStar. This temporary arrangement will expire
on September 30, 2025 and, at that time, Fort Worth anticipates completion of all regulatory
requirements and operation will continue under its own license and federal registrations.
If you have any questions, please contact Reginald Zeno, Chief Financial Officer, at 817-392-8500;
Tony Rousseau, Deputy Finance Director at 817-392-8338 or Taylor Paris, Sr. Assistant City
Attorney at 817-392-6285.
Jesus "Jay" Chapa
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS