Title
Approval of Incorporated County of Los Alamos Resolution No. 20-16. A Resolution Removing Uncollectible Ambulance Billing Accounts from Accounts Receivable List of Los Alamos County - July 2014 - June 2016
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Resolution No. 20-16, a Resolution Removing Uncollectible Ambulance Billing Accounts Receivable from the Accounts Receivable List of Los Alamos County for July 2014 to June 2016.
County Manager's Recommendation
The County Manager recommends that Council adopt Incorporated County of Los Alamos Resolution No. 20-16.
Body
Pursuant to NMSA 1978, Section 3-37-7, it is requested that the County Council approve the write off and removal of these uncollectible accounts. These accounts have been uncollectible for four (4) years or more and all avenues for collection by the County have been exhausted.
The New Mexico Attorney General's Opinion 70-88 indicated that writing off such uncollectible accounts has no effect on the County's future right to collection if circumstances change, and if collection is not barred by the applicable statute of limitations.
The amount of write-off for each account was determined from the actual amounts billed from July 2014 through June 2016 utilizing Credit Bureau Systems, DBA Ambulance Medical Billing.
For a normal billing year, in fiscal year 2019, the County averaged $63,034.36 in monthly charges, and $13,129.32 in contractual adjustments, along with $43,270.65 in monthly payment collections leaving an average net uncollected receivable of $6,634.39.
This is intended to show that on average, emergency service claims do not have a very high recovery rate. The County utilizes a third party billing contractor, Credit Bureau systems, DBA Ambulance Medical Billing.
Each year uncollectible ambulance accounts receivable for write-off are brought forward.
Alternatives
The alternative is to maintain these amounts as receivables, an asset, on...
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