ADDENDUM
To
CUSTOMER SERVICE AGREEMENT
Between
UNITED MEDICORP, INC.
And
WASHINGTON HOSPITAL CENTER
Whereas UMC and the Washington Hospital Center ("Client") have agreed that UMC
shall assume responsibility for follow up and collection of claims generated by
physicians outside of the Department of Emergency Medicine with balances less
than $5,000 which are aged 31 days or more as of the date such claims are
transmitted to UMC.
UMC and Client hereby agree to amend the Customer Service Agreement dated
December 15, 1992, as amended effective October 1, 1996, as follows:
I) ONGOING CLAIMS
1) Client shall electronically transmit to UMC each day or from time to time
physician claims which have balances less than $5,000 and are aged more than 31
but less than 120 days from Date Of Service (the "Ongoing Claims").
II. BACKLOG CLAIMS:
1) Client shall from time to time electronically transmit to UMC physician
claims aged more than 120 days from Date Of Service (the "Backlog Claims").
III. ACCOUNTS RECEIVABLE MANAGEMENT SERVICES:
1) UMC shall follow up the Ongoing Claims and the Backlog Claims (collectively
"Claims") with the appropriate third party payor. UMC shall be responsible for
correcting any errors in the Claims and rebilling the Claims as appropriate and
necessary to obtain payment. UMC shall xxxx all Claims due from secondary
payors.
2) Client shall transmit to UMC within five days of receipt all payments and
adjustments related to the Claims.
3) After collecting or exhausting efforts to collect all monies due from third
party payors on the Claims, UMC shall update Client's SMS System such that a
xxxx is sent to the guarantor of the Patient Balance for the appropriate amount
remaining due, giving proper consideration to applicable Medicare regulations,
contractual allowances, and other relevant criteria. UMC shall be responsible
for updating Client's SMS System to record the appropriate change
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in Financial Class. Client shall Provide systems Support to UMC as necessary
to assure that system updates processed on the UMC system are correctly
updated on Client's SMS System.
4) After exhausting all efforts to collect monies due on the Patient Balances,
UMC shall close and return the accounts to be written off as bad debts. UMC
shall forward such accounts to the bad debt collection agency(ies) designated by
Client.
5) In collecting the Patient Balances, UMC shall comply with all aspects of
the Federal Fair Debt Collection Practices Act ("FDCPA") and applicable state
and local statutes governing collection Practices.
6) Payments resulting from UMC's collection efforts shall be directed to
Client. Should payment be made to UMC, UMC agrees to forward payment immediately
to Client.
7) UMC shall be entitled to its fee with respect to all collections resulting
from the Claims and the Patient Balances, regardless of whether such collections
were received by UMC or Client.
8) UMC's fee for collecting the Ongoing Claims and resulting Patient Balances
shall be 10.0 percent of all collections received.
9) UMC's fee for collecting the Backlog Claims and resulting Patient Balances
shall be 13.5 percent of all collections received.
All other terms and conditions shall remain as stated in the Customer
Service Agreement, as amended.
This Amendment shall become effective on May 5, 1997, and shall
remain in force until amended or terminated by either party upon 30 days prior
written notice.
CLIENT:
/s/ Xxxxx Xxxxxxx 5/9/97
------------------------------ ---------------
Xxxxx Xxxxxxx Date
Vice President, Finance
UNITED MEDICORP, INC.;
/s/ X. X. Xxxxxx 4/15/97
------------------------------ ---------------
Xxxxx X. Xxxxxx Date
Chairman and CEO
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