Title
MOTION TO APPROVE THE MASTER SOFTWARE AS A SERVICES (SAAS) AGREEMENT BETWEEN THE CITY OF PEMBROKE PINES AND ZOLL DATA SYSTEMS, INC., FOR THE ZOLL BILLING SOFTWARE SOLUTION FOR THE FIRE RESCUE DEPARTMENT, FOR AN INITIAL FIVE (5) YEAR PERIOD, IN AN AMOUNT NOT TO EXCEED $288,000, PURSUANT TO SECTION 35.18(C)(7) OF THE CITY'S PROCUREMENT CODE.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
-Chapter 35 of the City's Code of Ordinances is titled "PROCUREMENT PROCEDURES, PUBLIC FUNDS."
-Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
-Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
-Section 35.18(C)(7) states that "The following contractual services are not subject to the competitive procurement requirement:"
-Section 35.18(C)(7)(h) states that "Copyrighted materials, including computer software;"
-Section 35.18(C)(7)(i) states that "Software licensing and maintenance with the company from which the software was purchased, or its authorized representative;"
-Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $100,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The City of Pembroke Pines Fire Rescue Department is requesting approval to enter into Master Software as a Services (SaaS) Agreement with ZOLL Data Systems, Inc. for the purchase and implementation of the ZOLL Billing software solution to improve the efficiency, accuracy, and effectiveness of the Department's Emergency Medical Services (EMS) billing operations.
2. ZOLL Billing is a cloud-based software solution designed specifically for EMS revenue cycle management. The software automates billing processes, including claim preparation, insurance verification, claim submission, patient statement generation, payment processing, and financial reporting.
3. The software is designed to streamline the billing and claims process by reducing manual data entry, minimizing documentation and coding errors, improving claim accuracy, and reducing reimbursement delays.
4. ZOLL Billing provides the following features and capabilities:
a) Automated processing and submission of EMS billing claims.
b) Verification of patient demographic information, insurance eligibility, and benefits.
c) Identification of available primary, secondary, and tertiary insurance coverage.
d) Automated patient statement generation and payment processing.
e) Real-time financial reporting, including charges, payments, and revenue tracking.
f) Automatic updates to Medicare fee schedules.
g) Integration capabilities with electronic Patient Care Reporting (ePCR) systems and third-party clearinghouses.
h) Functionality designed to support compliance with the Health Insurance Portability and Accountability Act (HIPAA).
5. The implementation of the ZOLL Billing software solution will replace the Fire Rescue Department's existing billing applications, including CentralSquare, Avidity, and ZOLL PairLogic. By consolidating these applications into a single, integrated platform, the Department anticipates improving operational efficiency, streamlining billing processes, and enhancing the overall management of EMS billing operations.
The Department currently utilizes and funds the following billing software applications:
|
Current Vendor |
Yearly Cost |
|
CentralSquare |
$15,959.42 |
|
Avidity |
$12,000.00 |
|
Zoll -Pairlogic |
$20,701.80 |
|
Total |
$48,661.22 |
The proposed ZOLL Billing software solution is estimated to cost approximately $56,100 annually, with a first-year cost of $63,600, which includes a one-time implementation fee of $7,500. The proposed solution will replace the existing applications, eliminating the Department's current annual software expenses of approximately $48,661.22, resulting in an estimated net annual increase of $7,438.78. The first-year net increase will be approximately $14,938.78, including the one-time implementation fee.
The increased annual cost is justified by the additional functionality offered by ZOLL Billing, which is expected to streamline billing and claims processing by reducing manual data entry, minimizing documentation and coding errors, improving claim accuracy, and reducing reimbursement delays.
6. As a cloud-based solution, ZOLL Billing eliminates the need for dedicated on-premises servers and the specialized IT support associated with maintaining traditional enterprise software. The platform also provides automatic software updates and allows authorized personnel to access the system through a web browser and an active internet connection.
7. The software's automated revenue cycle management capabilities are designed to help the Fire Rescue Department identify available insurance coverage, improve the accuracy of submitted claims, reduce claim denials, and enhance reimbursement opportunities for EMS services.
8. ZOLL Data Systems, Inc. has submitted Order No. Q-135590, proposing an initial sixty (60) month agreement for the ZOLL Billing software solution, including software subscription services and implementation services.
9. The City has obtained the following pricing from ZOLL Data Systems, Inc.:
|
Description |
Cost |
|
Monthly SaaS Subscription Fee |
$4,675.00 |
|
Annual SaaS Subscription Cost (12 Months) |
$56,100.00 |
|
One-Time Implementation Services |
$7,500.00 |
|
First Year Cost |
$63,600.00 |
10. The proposed pricing is based on an estimated 1,000 claims per month and includes up to three (3) patient statements per claim. Additional patient statements exceeding this allowance are subject to additional fees under the terms of the agreement.
11. Pursuant to the Addendum, the City may terminate the agreement for convenience upon thirty (30) calendar days' prior written notice, subject to payment of the remaining compensation due for the contract year in which termination becomes effective, without further obligation for subsequent contract years.
12. The Fire Rescue Department would like to move forward with the proposed five (5) year agreement with ZOLL Data Systems, Inc. to implement the ZOLL Billing software solution and improve the efficiency and effectiveness of its EMS billing operations.
13. Request City Commission approval of the Master Software as a Services (SaaS) Agreement between the City of Pembroke Pines and ZOLL Data Systems, Inc., for the ZOLL Billing software solution for the Fire Rescue Department, for an initial five (5) year period, in an amount not to exceed $288,000, pursuant to Section 35.18(C)(7) of the City's Procurement Code.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $288,000
b) Amount budgeted for this item in Account No: Funds are available in account # 001-529-4003-552664-0000-000-0000 - Non-Capital Software - Rescue
c) Source of funding for difference, if not fully budgeted: Not applicable.
d) 5 year projection of the operational cost of the project:
|
Description |
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
SaaS Subscription |
$56,100 |
$56,100 |
$56,100 |
$56,100 |
$56,100 |
|
Implementation Services |
$7,500 |
$0 |
$0 |
$0 |
$0 |
|
Total Expenditures |
$63,600 |
$56,100 |
$56,100 |
$56,100 |
$56,100 |
Total Five-Year Cost: $288,000
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.