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HomeMy WebLinkAbout26-0069 - 2026-06-02 - Informal ReportINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0069 To the Mayor and Members of the City Council June 2, 2026 Page 1 of 3 SUBJECT: OVERVIEW OF THE REQUEST FOR PROPOSALS (RFP) PROCESS FOR EMS BILLING SERVICES The purpose of this Informal Report is to provide Mayor and Council with a brief overview of the Request for Proposals (RFP) process used to procure Emergency Medical Services (EMS) billing and collection services, and to highlight the key factors supporting the selection of EMS Management & Consultants, Inc. (EMSIMC). An M&C authorizing the recommended contract for EMS billing and collection services is scheduled to be presented to Mayor and Council for consideration on June 9, 2026. Overview of the RFP Process The RFP process is the City's standard procurement method for complex professional services. It promotes competition, transparency, and selection based on best value, rather than lowest cost alone. For EMS billing services, Purchasing issued RFP No. 26-0066 with detailed requirements for revenue cycle management, claims processing, reporting, compliance, and customer service. The solicitation was publicly advertised, and the City received six (6) proposals. A cross -functional evaluation panel, including Financial Management Services, Fire, IT, FWLab, and the Office of the Medical Director, reviewed and scored proposals using established best -value criteria. The top three firms were invited to participate in interviews and presentations to validate capabilities and approach. Proposals were evaluated based on: • Experience and qualifications in EMS billing • Demonstrated performance and compliance • Reporting capabilities and customer service • Financial analysis and fee structure • Cost (percentage of net collections) This framework ensures the selected vendor can maximize collections, reduce risk, and deliver reliable service, not just offer the lowest price. Why EMSMC Was Selected EMSIMC achieved the highest overall evaluation score and was determined to provide the best value to the City. Key differentiators included: • Strong Revenue Performance & Value: EMSMC offered the most competitive overall cost while also demonstrating the ability to increase net collections through proven billing practices and advanced coverage identification tools; ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0069 To the Mayor and Members of the City Council June 2, 2026 Page 2 of 3 SUBJECT: OVERVIEW OF THE REQUEST FOR PROPOSALS (RFP) PROCESS FOR EMS BILLING SERVICES • Enhanced Revenue Recovery Capabilities: EMSMC's Safety -Net Health Coverage Identification service helps identify previously unknown insurance coverage. While this service carries a higher fee, it is expected to generate additional revenue that would otherwise not be collected, resulting in a net financial benefit to the City; • Superior Internal Controls & Reliability: EMSMC was the only proposer utilizing multiple clearinghouses, providing redundancy and reducing the risk of service disruption. This is critical for maintaining uninterrupted claims processing and cash flow; • Verified Compliance & Data Security: EMSMC holds a SOC 2 Type II certification, demonstrating that its internal controls are independently validated and operating effectively, an important factor given the sensitive nature of patient and financial data; and. • Consistent High Performance Across Criteria: EMSMC scored at or near the top in all major evaluation categories, indicating a well-balanced proposal with strong technical capability, customer service approach, and financial strategy. In addition to proposal strengths, the City has observed measurable operational improvements during the current engagement period, which further support the selection: • Dedicated Staff & Responsiveness: Service responsiveness has improved using a structured Smartsheet tracking tool and the daily onsite support of a dedicated Client Success Representative; • Improved Reporting: Reporting processes have become more consistent, standardized, and transparent, supporting better financial oversight and decision -making; • Cost Efficiency: The proposed contract rate of 2.70% of net collections represents a competitive pricing structure and is projected to generate approximately $373,000 in savings in FY2027 compared to prior cost levels; • Technology Advancements: Ongoing implementation of a company -developed billing platform, with integrated coding and billing rules, will enhance efficiency, accuracy, and compliance, along with a connected portal to improve billing visibility; and • Enhanced Financial Controls: Improvements to import reconciliation processes have reduced discrepancies and strengthened the accuracy and reliability of financial reporting. Contract Overview The recommended agreement includes: • One-year initial term with four one-year renewal options • Compensation based on a percentage of net collections, aligning vendor performance with the City's revenue outcomes ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0069 To the Mayor and Members of the City Council June 2, 2026 Page 3 of 3 SUBJECT: OVERVIEW OF THE REQUEST FOR PROPOSALS (RFP) PROCESS FOR EMS BILLING SERVICES Conclusion The RFP process ensured a fair, competitive evaluation and resulted in the selection of a vendor that delivers the best combination of cost efficiency, revenue maximization, operational reliability, and compliance. EMSMC's proposal stood out not only for its competitive pricing, but for its ability to enhance collections, reduce operational risk, and provide a high level of service, making it the best overall value for the City. For questions regarding this Informal Report, please contact Tony Rousseau, Deputy Finance Director at (817) 392-8338. Jesus "Jay" Chapa City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS