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MEMO <br /> DATE: 10/6/92 <br /> TO: Susan <br /> FROM: Dee and Tom <br /> RE: Change in ambulance billing procedure <br /> With the current ambulance billing system, an individual receives <br /> a bill each month for six months (180 days). A penalty of 1% per <br /> month starts after 60 days. After six months, the city should <br /> file any unpaid bills with the conciliation court. So far, we <br /> have not been filing these for different reasons. The main <br /> reasons are it is very time consuming to fill out the forms and <br /> the cost is $18.00 or more per person. <br /> We started the year with $44,069.53 on the books as receivables <br /> and have billed an additional $41,079.26 in 1992. In total, we <br /> have billed $85,148.79 of which the city has collected $37,113.69 <br /> and have written off as uncollectible $26,338.66. This leaves a <br /> receivable balance of $21,696.44 as of 9/30/92. However, <br /> $5,632.42 should be taken to court. <br /> What we propose is to turn them over to a collection agency after <br /> 120 days instead of filing in conciliation court. We would like <br /> to recommend using Transworld Systems, Inc. in Roseville as our <br /> collection agency. A two year agreement for 40 bills (accounts) <br /> would cost $398.00 and any monies collected would belong to the <br /> city. Therefore, if we collect 1 1/2 bills, the service would be <br /> paid for. All bills turned over to the agency could have $9.95 <br /> added to the balance to pay for the service. Transworld would <br /> send up to five notices (see attached copies of various notices <br /> and letters). After the fifth notice, the city could then write <br /> it off or take them to conciliation court. <br /> Why change from the current system? While the current billing <br /> program has increased payments significantly, there are still a <br /> few that do not pay or contact us. The hope is that the threat <br /> or turning over the bills to a collection agency will trigger <br /> some response from these few. The process of turning them over <br /> to the collection agency will be easier and less time consuming <br /> than conciliation court. <br /> Attached is a list of other cities that use Transworld to collect <br /> bills for them. <br /> TK:DS <br /> Attachments <br />