ESBD_384444_1736523596668_Addendum 2 RFP 774-194166068 Collection Agency MPIP FINAL 01.10.2025.pdf

Collection Agency MPIP

RFP # 774-194166068

Addendum 2

Questions Submitted to TTUHSC El Paso Responses

Request for Proposal (RFP) # 774-194166068

Due Date: January 24th, 2025 at 12:00 P.M. MST Proposals must be time stamped by the Texas Tech University Health

Sciences Center at El Paso Purchasing Office before the hour and date specified for receipt of proposals.

Document Available at: https://www.txsmartbuy.gov/esbd/774-194166068

And https://bids.sciquest.com/apps/Router/PublicEvent?CustomerOrg=TexasTech (Registration Required) https://www.txsmartbuy.gov/esbd/774-194166068 https://bids.sciquest.com/apps/Router/PublicEvent?CustomerOrg=TexasTech

The following responses to participant questions are fully incorporated into the Request for Proposal # 774-194166068.

Question 1

Who are the incumbents providing these services?

Answer 1

DSI and CRI

Question 2

What is the collection success rate (recovery rate/liquidation percentage) of the current incumbents?

Answer 2

Rate has varied between 3.1% and 4.5%

Question 3

What is/are the current rates being charged for the services by the current incumbent(s), including legal fees? (At a minimum, please provide a range).

Answer 3

Net 17% - 18% for first placements

Question 4

How much were the current incumbents paid by TTUHSC EP in the last Fiscal Year?

Answer 4 estimated $8,000 to $10,000 monthly

Question 5

Please confirm the number of vendors the TTUHSC EP intends on selecting/awarding?

Answer 5

Estimating to award to 2 vendors

Question 6

Please describe/define the various accounts types designated for this collection project (i.e., patient balances for medical services (incl. Pure SP vs. SP after insurance), employee bonuses, employee loans, patient loans, etc.).

Answer 6

All patient self-pay accounts to include Pure SP vs. SP after insurance

Question 7

What is the anticipated volume, both dollar value and number count of accounts to be referred on a regular basis, broken down by debt type as listed in the previous question?

Answer 7

Monthly average 4,000 invoices

Question 8

What is the age of accounts at the time of referral (i.e., 120 days, 150 days, 180 days, etc.)?

Answer 8

60 days

Question 9

What is the average balance (by debt type) of these accounts?

Answer 9

$250.00

Question 10

Are there any backlog accounts or accounts residing with current vendors that would be referred to a new vendor?

a. If yes, what is the # and $ value of those backlog accounts?

b. What is the average age of those backlog accounts?

Answer 10

All accounts would be new accounts for new vendors.

a. -NA-

b. -NA-

Question 11

Please confirm how long the vendors keep the accounts?

Answer 11

-NA-

Question 12

How will the TTUHSC EP provide referrals to the agency (i.e., via secure file transfer, etc.)?

Answer 12 via secure file transfer

Question 13

With what frequency will the TTUHSC EP refer accounts (i.e., weekly, monthly, etc.)?

Answer 13

Accounts are place the first 4 Tuesdays of each month

Question 14

In what method/manner and with what frequency will the TTUHSC EP provide UPDATE & PAYMENT (for payments received directly by the TTUHSC EP) Files to the contractor?

Answer 14

Weekly payment/adjustment report emailed to the contractor every Friday thru secure email.

Question 15

What percentage of accounts will have a judgment in place at the time of referral, if any?

Answer 15

-NA-

Question 16

What collection activities take place on the accounts, by the TTUHSC EP, prior to referral to the agencies?

Answer 16

2 Statements are sent to the patients

Question 17

Will TTUHSC EP continue collection efforts on accounts referred to the agencies? If yes, please describe those efforts?

Answer 17

No

Question 18

Are legal services a part of this proposal? If yes, will we be permitted to submit legal fees?

Answer 18

No

Question 19

How many accounts were approved for, and did the incumbents pursue legal action within the last Fiscal Year?

Answer 19

-NA-

Question 20

What host system does the TTUHSC EP use to store, manage and process accounts (i.e., EPIC, etc.)?

Answer 20

Athena IDX

Question 21

RFP Page 4, “Submittal Checklist”: Is this for informational purposes only or are we required to submit with our proposal?

Answer 21

These should be checked off by the vendor.

Question 22

RFP Page 11, Section 3.6: Is there a mandatory HUB percentage for this contract? Since subcontracting is not probable under this contract and/or if we are not subcontracting, which of the HUB forms must we still complete and submit with our proposal?

Answer 22

You may indicate on the HUB forms that you will not be submitting any information and will not be participating on them.

Question 23

RFP Page 14, Section 4.8.6: Must form 1295 be completed and submitted with or prior to our proposal, or is this ONLY required upon contract award?

Answer 23

This form should be completed prior to the deadline on the indicated website.

Question 24

RFP Page 17, Paragraph #3 “Performance Bond”: Must this bond be submitted with our proposal or is this only required by awarded vendors?

Answer 24

Awarded vendors only.

Question 25

RFP Page 18, Section 5.3.1.3, under the “provide_” section: This first box asks for the number of accounts currently managed and serviced”. Please confirm if you are asking only about medical accounts here or similar accounts to this contract, as the next box asks for all accounts. It is unclear the specific category of account data being asked for in this first box/section. Please clarify.

Answer 25

All accounts are Physician Medical Billing.

Question 26

RFP Page 20, Section 5.4.9: Will the TTUHSC EP be providing interest/fees/penalties at referral of any account?

a. If yes, will the TTUHSC EP continue to accrue interest after referral to the agency? Or are the agencies required to accrue interest?

b. Will the TTUHSC EP provide updates to any changing interest, penalties, fees after the account is referred to the agency? If yes, with what frequency?

Answer 26

No

a. -NA-

b. -NA-

Question 27

RFP Page 26, Sample Collection Agreement: Please confirm if this agreement is for informational purposes only.

Answer 27

This is a sample only.

Question 28

RFP Page 34, Sample Collection Agreement: Paragraph 20 states that a $4M performance bond is required, yet Page 17 of the RFP States a performance bond of $125K is what is required. Please clarify which is correct?

Answer 28

$125,000 is the correct amount. The amount on page 34 is only intended as a sample.

Question 29

RFP Page 34, Sample Collection Agreement “Insurance Requirements: Are bidders required to submit an Insurance certificate with their proposal or is this only required upon contract award?

Answer 29

Upon contract award.

Question 30

RFP Page 48, Business Associate Agreement: Please confirm that this is for informational purposes only and is not required to be completed/submitted with our proposal.

Answer 30

Not required to be completed/ submitted/ filled out with proposal. This agreement will be used with awarded vendor(s).

Question 31

Section 5.2, Minimum requirements state " Proposer shall demonstrate evidence of certifications, permits, licenses and insurances as appropriate to perform Services as required. " Is it permissible to obtain surety bond, certificate of franchise tax, and certificate of good status from TX Comptroller upon award of the bid or should these be executed prior to proposal submission?

Answer 31

All vendors are required to obtain the necessary certificates prior to the proposal. Please refer to section 5.2, page 17.

Question 32

How old are the accounts when we get them?

Answer 32

60 days

Question 33

How many accounts are in the inventory?

Answer 33

Approximately 33,000 placed annually

Question 34

What is the dollar value of monthly or annual placements?

Answer 34

Monthly average of $700K to $1 Million

Question 35

What is the average balance size?

Answer 35

$250.00

Question 36

How long will the awarded vendor keep the accounts?

Answer 36

Considering a 6-to-9-month period

Question 37

Is credit reporting allowed?

Answer 37

No

Question 38

What are the past liquidation rates?

Answer 38

Rate has varied between 3.1% and 4.5%

Question 39

What is the expected liquidation rate?

Answer 39

Goal of 5 to 6% recovery

Question 40

Are settlements allowed?

Answer 40

Only by TTUHSCEP

Question 41

Are texting and email allowed?

Answer 41

Yes

Question 42

What percent of accounts that have email addresses on file?

Answer 42

Approximately 45%

Question 43

How many vendors are working the portfolio currently?

Answer 43

2 Vendors

Question 44

How many vendors are you looking to award the contract?

Answer 44

Estimating to award to 2 vendors

Question 45

What is the estimated date of award?

Answer 45

Estimated to start September 1st, 2025.

Question 46

How many collection agencies currently perform the required services for TTUHSC EP MPIP?

Answer 46

2 Vendors

Question 47

How many contracts do you expect to award?

Answer 47 estimating to award to 2 vendors

Question 48

3.6 (page 11) – Since subcontracting opportunities have been determined “not probable” for this RFP, must we still complete and submit a HSP with our response? How will HUB participation factor into proposal evaluation/scoring?

Answer 48

• RFP Page 11, Section 3.6: Is there a mandatory HUB percentage for this contract? Since subcontracting is not probable under this contract and/or if we are not subcontracting, which of the HUB forms must we still complete and submit with our proposal? You may indicate on the HUB forms that you will not be submitting any information and will not be participating on them.

Question 49

4.8.6 (page 14) and Appendix G (page 47) – Please confirm Form 1295 need not be completed prior to the RFP deadline, but can be completed upon award.

Answer 49

• RFP Page 14, Section 4.8.6: Must form 1295 be completed and submitted with or prior to our proposal, or is this ONLY required upon contract award? This form should be completed prior to the deadline on the indicated website.

Question 50

5.2 (page 17) – Please provide an example of the bond form or language required for the performance bond.

Answer 50

Please refer to your insurance broker/ agent for acceptable examples.

Question 51

5.2 (page 17) – Please confirm the amount of the performance bond is $125,000 and not $4,000,000 as indicated in the Contract Sample, #20 on page 34.

Answer 51

• RFP Page 34, Sample Collection Agreement: Paragraph 20 states that a $4M performance bond is required, yet Page 17 of the RFP States a performance bond of $125K is what is required.

Please clarify which is correct? $125,000 is the correct amount. The amount on page 34 is only intended as a sample.

Question 52

Pricing Schedule (page 23) – Is it TTUHSC EP’s expectation to have one fee cover both first and second placement tiers? Or may the Pricing Schedule be modified to allow separate rates for first and second placements?

Answer 52

There will be no second placements