Exhibit 1 - Agenda Information Sheet - Amendment 1
City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: December 7, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to increase the spend authority with Change Healthcare Technology Enabled
Services, LLC, for the preparation and submittal of the Texas Ambulance Supplemental Payment Program
reimbursement for the Fire Department; providing for the expenditure of funds therefor; and providing an
effective date (RFP 7521 – awarded to Change Healthcare Technology Enabled Services, LLC, providing
for an additional expenditure amount not-to-exceed $140,000.00, with the total contract amount not-to-
exceed $320,000.00).
INFORMATION/BACKGROUND
The City of Denton requested proposals for the preparation and submittal of the Texas Ambulance
Supplemental Payment Program (TASPP) and associated services. Previously, the City of Denton was part
of an Interlocal Agreement with the City of Bryan and used Revenue Optimization Solutions, LLC, part of
the Change Healthcare Team, to prepare and submit the TASPP submission.
The TASPP is a federally approved program designed to provide additional reimbursement to governmental
providers that serve Medicaid, Medicaid Managed Care, and the Uninsured fee for service patients. The
City of Denton Fire Department is eligible for a portion of the variance between the cost of providing
ambulance services to Medicaid and uninsured patients, and what Medicaid pays. The annual
reimbursement to the City is an average of $700,000. For supplemental payment recovery preparation and
submission services, the City will pay a service fee equal to 4.0% of the reimbursement, which is 4.0% lower
than the prior contract through Revenue Optimization Solutions, LLC. Based on a historical spend and
future projections, at the time the recommended not to exceed (NTE) for this contract is $180,000 for a total
potential five (5) year contract.
The original estimated contract spend was calculated as a percentage of annual reimbursements in the
$700,000 range. However, in August 2021, the Federal government reduced the annual state reduction
percentage to almost zero, resulting in a much larger reimbursement than predicted. The FY 2020 TASPP
reimbursement amount was $2,958,290 (over $1.2 million more than anticipated), resulting in an invoice
of $108,080.74 for cost reporting services. This additional one-time increase in revenue is due to the
successful implementation of an effective Charity Care Policy and the State’s shift in the cost reporting
requirements to the charity methodology. This increase is for future reimbursements which are predicted to
be significantly less as shown below.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Year Spend
2022 $ 35,000
2023 $ 35,000
2024 $ 35,000
2025 $ 35,000
TOTAL $140,000
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 25, 2021, City Council approved a contract with Change Healthcare Technology Enabled Services,
LLC, in the not-to-exceed amount of $180,000 (Ordinance 21-956).
RECOMMENDATION
Award an additional expenditure with Change Healthcare Technology Enabled Services, LLC, for the
preparation and submittal of the Texas Ambulance Supplemental Payment Program reimbursement for the
Fire Department, in a not-to-exceed amount of $140,000, for a total amended contract amount of $320,000.
PRINCIPAL PLACE OF BUSINESS
Change Healthcare Technology Enabled Services, LLC
Alpharetta, GA
ESTIMATED SCHEDULE OF PROJECT
This contract will expire on May 25, 2026.
FISCAL INFORMATION
These services will be funded from Fire Department Operating Funds based on the reimbursement amount.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: LLC Members
Exhibit 4: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Lindsey Garrison, 940-349-8844.
Legal point of contact: Marcella Lunn at 940-349-8333.