TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve Utilization of Collier County, Florida Contract 23-8098 With Digitech EMS Billing, LLC d/b/a Digitech Computer, LLC for Emergency Medical Services (EMS) Billing Services in an Amount Not to Exceed $250,000 Annually Through the Term Ending March 12, 2027, and Authorize the City Manager to Approve any Modifications or Terminations in Concurrence With Collier County, Florida.
Recommended Action
Option 1: Approve utilization of Collier County, Florida Contract 23-8098 with Digitech EMS Billing, LLC d/b/a Digitech Computer, LLC for Emergency Medical Services (EMS) billing services in an amount not to exceed $250,000 annually through the term ending March 12, 2027, and authorize the City Manager to approve any modifications or terminations in concurrence with Collier County, Florida.
City Commission Options
Option 1: Approve utilization of Collier County Florida Contract 23-8098 with Digitech EMS Billing, LLC d/b/a Digitech Computer, LLC for Emergency Medical Services (EMS) billing services in an amount not to exceed $250,000 annually through the term ending March 12, 2027, and authorize the City Manager to approve any modifications or terminations in concurrence with Collier County, Florida.
• Pros: Provides a comprehensive EMS billing solution, including patient and third-party invoicing, collections, insurance processing, record maintenance, and reporting. The Contract is cost-effective, as Digitech is compensated based on a percentage of revenue collected (excluding Medicaid claims), and the rate reflects Collier County’s significantly higher transport volume, resulting in a more favorable, lower collection percentage than the City could likely obtain independently. This approach reduces administrative burden, improves operational efficiency, and enhances overall revenue recovery, including support for supplemental payment programs.
• Cons: Reliance on an external vendor for critical billing and revenue cycle functions may limit direct internal control over processes and timelines, and the City is subject to the pricing structure and terms established under Collier County’s Contract.
Option 2: Deny the utilization of Collier County, Florida Contract 23-8098 with Digitech EMS Billing, LLC d/b/a Digitech Computer, LLC.
• Pros: Allows the City to develop and issue its own competitive solicitation tailored specifically to EMS billing service needs and performance expectations, including direct control over Contract terms.
• Cons: The City would likely not achieve the same lower collection rate tied to Collier County’s higher volume, potentially resulting in higher service costs. Additionally, procurement would require significant time and administrative effort, which may delay billing operations, negatively impact revenue collection, and hinder participation in supplemental reimbursement programs.
Background Information
The North Port Fire Rescue Department seeks to utilize a Cooperative (‘Piggyback’) Contract established between Collier County and Digitech EMS Billing, LLC d/b/a Digitech Computer, LLC (Contract 23-8098) for Emergency Medical Services (EMS) billing services.
Under this Contract, Digitech will provide comprehensive EMS billing services, including invoicing patients and other third-party payees responsible for payment of services rendered. The vendor is responsible for billing, collections, and the preparation and submission of all required insurance forms and filings, as well as record maintenance and reporting. Additionally, Digitech provides customer service representatives to assist patients and third-party payees with billing inquiries.
The vendor also supports the North Port Fire Rescue Department in the preparation and submission of application materials, as well as responding to requests for additional information necessary to obtain and maintain participation in Ambulance Supplemental Payment Programs. These programs include, but are not limited to, the Certified Public Expenditure (CPE) Program for EMS and the Medicaid Managed Care Supplemental Payment Program / Public Emergency Medical Transportation (PEMT), both of which serve as important revenue sources for the City.
This Contract structure is cost-effective for the City, as Digitech’s compensation is based on a $7.25 fee for each Medicaid transport processed and a percentage of revenue collected, excluding Medicaid claims. The established rates of 3.65% for non-Medicaid collections, 6% for PEMT services, and 3% for Managed Care Organization (MCO) services are derived from Collier County’s significantly higher volume of transports and associated revenue collection, which allows for a more favorable collection percentage than the City could likely achieve independently. By leveraging Collier County’s scale, the North Port Fire Rescue Department benefits from improved pricing and enhanced revenue recovery.
The City may utilize this Cooperative Contract because the scope aligns with the City’s EMS billing needs, the Contract was competitively procured, and the pricing has been determined to be fair and reasonable. Use of the Contract promotes operational efficiency, reduces administrative burden, and supports revenue collection while remaining consistent with the City’s procurement policies.
The underlying Collier County solicitation was conducted through a formal competitive process substantially similar to the City of North Port’s procurement requirements.
Moving forward, the North Port Fire Rescue Department will utilize the established City procurement process for all subsequent requisitions under this Contract to ensure continued administrative oversight and compliance with City policy.
Contract 23-8098 has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan Pillar
Safe Community
Financial Impact
Financial resources have been adequately budgeted in the North Port Fire Rescue Department’s fiscal year 2026 adopted budget in account number 001-2222-526.31-05 to support services through this Contract for the remainder of fiscal year 2026. Any services rendered on/after October 1, 2026, against this Contract are contingent on an adopted fiscal year budget for the North Port Fire Rescue Department.
Procurement
The utilization of this Cooperative Contract is consistent with Chapter 2, Administration, Article VIII, Procurement, Section 2-403(a)(4)(a) of the Code of the City of North Port, Florida.
The North Port Fire Rescue Department will utilize the established internal procurement process for all purchases under these Contracts to ensure continued administrative oversight and compliance with City policy.
Attachments:
1. Contract 23-8098 with Award and Solicitation
Prepared by: Deanna Marshall, Senior Business Manager
Department Director: Scott Titus, Fire Chief