On Tuesday, the City of Richardson issued this press release:
Richardson Among Several Texas Cities Settling Dispute Concerning Medicare/Medicaid(Richardson, TX) -- The City of Richardson is one of many Texas cities that contracted with Southwest General Services of Dallas, L.L.C. (SGS) to perform all aspects of ambulance billing services. SGS was selected based on its substantial experience and expertise in Medicare and Medicaid billing and compliance with state and federal laws, and those representations and obligations were included in Richardson's contract for services.
In 2006, SGS failed to incorporate changes in its billing methodology to comply with new federal rules regarding the standards for ambulance transport charges for Medicare and Medicaid reimbursement. The failure to change the billing method resulted in Medicare and Medicaid being over charged for some services. Billing for all other ambulance transports was not affected.
The City has reached a settlement agreement in the amount of $160,979.56 with the U.S. Attorney's Office to release the City from any claims arising from the failure of SGS to properly bill for services. Although Richardson disputes responsibility for any penalties, a settlement of the matter will avoid further defense expenses and exposure to higher damages and penalties.
The City has also put SGS and the contractor's insurance company on notice that the City's rights under contract indemnify the City from all claims arising out of SGS's performance of the contract and from any violation by SGS of federal, state, and local laws, ordinances, regulations and policies. The City also put SGS on notice that it will seek full restitution of damages that have come as a result of improper billing practices.
After the jump, interpreting the doctor's handwriting.