Council considers shift to third-party EMS billing service

Proposed change projects significant revenue increases

 

  • Yoakum EMS Director Nick Kresta discussed the advantages of outsourcing billing and collection services to Emergicon Emergency Medical Billing at the Dec. 13 Yoakum City Council meeting.
    Yoakum EMS Director Nick Kresta discussed the advantages of outsourcing billing and collection services to Emergicon Emergency Medical Billing at the Dec. 13 Yoakum City Council meeting.

    The Yoakum City Council heard from Yoakum EMS Director Nick Kresta last week concerning a proposed change to the agency’s billing process that projects to increase cash collection by $76,500 in the first year. 

     

    At the Dec. 13 meeting in City Hall, Kresta presented the advantages of outsourcing billing and collection services to Emergicon Emergency Medical Billing. The Dallas-based company aims to increase collection rates for a 7% absorption fee.

     

    “The projected $76,500 increase in cash collection in year one is not a made-up number; I gave them all of the information for calls from Oct. 1, 2021, until Aug. 31, 2022 – our actual calls…” said Kresta to the council. “They handle everything in-house – one company. It is not multiple programs; it is human beings actually reading our charts that our personnel are writing, and they are coding them as they read.”

     

    In a letter to the EMS director, Emergicon Account Manager Brent Irving claimed that the company’s service had increased reimbursements for every one of its Texas clients by an average of more than 30% over the last 16 years. The company boasts more than 180 contracts with municipalities of various population sizes with a combined total volume of more

    than 300,000 transports annually.

     

    In addition to increasing collections, City manager Kevin Coleman said the switch to Emerigcon would likely free up workload from City staff that currently aid with the EMS billing process. 

     

    “(Emergicon) is feeling that the city would see an increase of about 30% in collections in year one. I think their ability to do that is because that is all they do…” said Coleman. “They will be more aggressive; there is no question about it with a seven percent payment. They have the expertise, the ability and the staffing to understand all the Medicare and Medicaid rules, which are different in Texas than anywhere else.”

     

    Emerigcon also recommends increasing the fee schedule to the current industry standards, though Kresta was waiting for approval before addressing those initiatives.

     

    Council gave Kresta the go-ahead to pursue information on a few follow-up questions. Kresta explained that he hoped Irving would be available for January’s City Council meeting to discuss the agreement in more detail before action.