Consent Agenda:

TR14425 - A Resolution of the City Commission of the City of Tamarac, Florida, requesting approval to execute an agreement between the City of Tamarac and Digitech Computer LLC attached hereto as Exhibit A for the administration, processing, and collection of fees associated with the transport of Emergency Medical Services (EMS) patients by Tamarac Fire Rescue Department for a three-year period beginning October 1, 2026, through September 30, 2029 at the percentage of revenues collected as set forth in the Agreement in an amount not to exceed $300,000 annually; providing for conflicts; providing for severability; and providing for an effective date.

The Fire Chief and Finance Director recommend the City Commission of the City of Tamarac approve the execution of an Agreement with Digitech Computer LLC (Digitech) for the administration, processing and collection of costs associated with the transport of Emergency Medical Services (EMS) patients by Tamarac Fire Rescue Department for a three-year period beginning October 1, 2026, through September 30, 2029, and that this item be placed on the August 26, 2026 Commission meeting.

Digitech (formerly Advanced Data Processing Inc.) and the City of Tamarac executed an Agreement for Emergency Medical Services (EMS) billing services for Tamarac Fire Rescue on October 1, 2025, pursuant to Resolution R-2025-98. A copy of the resolution is on file with the City Clerk, and the current Agreement is scheduled to expire on September 30, 2026.

Digitech has served as the City’s EMS billing service provider and has consistently met the City’s performance standards and expectations while maintaining a proven track record within the EMS billing industry.  Currently the national revenue recovery averages 68%, while Tamarac sits in the upper echelon of Broward agencies with a recovery rate of 76.9% for 2025 and projected rate of 77.5% for 2026. In addition to providing routine billing, claims processing, and revenue recovery services.

Digitech has also demonstrated a favorable revenue rate of return, with its administrative fee representing approximately 4.25% Return on Investment (ROI) for the past three years. This performance supports the City’s objective of maximizing the recovery of eligible EMS transport revenue while maintaining an efficient cost of collection.

In addition to traditional EMS transport billing, Digitech assists the City with the administration and recovery of supplemental Medicaid reimbursement available to eligible governmental EMS providers. One such revenue source is the Public Emergency Medical Transportation (PEMT) program. PEMT is a Medicaid supplemental payment program available to eligible publicly owned or operated emergency medical transportation providers, including qualifying municipal fire-rescue agencies. The program is intended to help offset the difference between standard Medicaid reimbursement for eligible ambulance transportation services and the allowable costs incurred by governmental EMS providers in delivering those services. Digitech earns 6% on recoverable PEMT monies.

Medicaid reimbursement also includes payments associated with Managed Care Organizations (MCOs). An MCO is a healthcare organization that contracts with the State Medicaid Program to manage and reimburse healthcare services provided to Medicaid beneficiaries enrolled in a managed-care plan. When Tamarac Fire Rescue transports an eligible Medicaid patient enrolled in an MCO, the ambulance claim is generally submitted to the patient's managed-care organization for processing and reimbursement rather than being paid solely through the traditional Medicaid fee-for-service system. Digitech earns 3% on recoverable MCO monies. 

Maintaining continuity with Digitech therefore provides value beyond routine EMS billing. Digitech's familiarity with the City's historical claims, Medicaid and managed-care reimbursement processes, PEMT participation, cost-reporting requirements, and prior audit activity provides institutional knowledge that supports the city's ability to maximize eligible reimbursement and defend historical claims during future audits or reviews.

The City of Tamarac’s cooperative purchasing authority under Procurement Code §6-148(d) allows for utilization of another governmental agency’s pricing and allows piggyback from the City Fernandina Beach Contract #RFP 24-07 as the competitive procurement pricing for the same items/services.  

It is the recommendation of the Fire Chief, Interim Procurement and Contracts Manager and the Finance Director to execute the Agreement with Digitech. The City is eligible to utilize pricing from the City of Fernandina Beach and piggyback from their Contract # RFP24-07 executed in November 2024. The Fernandina Beach Agreement is available and is attached hereto this Memo as a backup document.  

Digitech will maintain the same fees between the City of Tamarac and Digitech which are at 4.00% of non-Medicaid revenue and a flat fee of $1,000 per month for Medicaid and Medicaid HMO account processing.  Six (6%) percent of collections for PEMT program management, three (3%) for MCO Program Management. The compensation shall not exceed Three Hundred Thousand Dollars and Zero cents ($300,000), per fiscal year unless an amendment to the agreement is approved by the city manager or city commission. 

In addition,

• Digitech will handle sending the City's HIPAA Notice of Privacy Practices at no additional cost
• Digitech will continue to handle Public Emergency Medical Transportation (PEMT) cost reporting at the same fee of 6% of revenues generated
• Digitech will continue to handle Managed Care Organizations Intergovernmental (MCO) Transfers (IGT) reporting at the same fee of 3% of revenue generated

The Finance Director and the Fire Chief recommend that it is in the best interest of the City of Tamarac to execute the Agreement with Digitech to administer all medical billing services for the Tamarac Fire Rescue Department.

The attached Resolution authorizes the approval and execution of the Agreement with Digitech for a period of three years. The Agreement with Digitech and City of Tamarac is attached hereto as Exhibit A.

Approval is required to execute an Agreement with Digitech for the administration, processing and revenue recovery of all EMS patient medical billing services. The current Agreement with Digitech expires on September 30, 2026.