Mayor's Office

Press Release

City of Houston Files Lawsuit Against Ambulance Billing Contractor



July 26, 2013 -- The City of Houston filed a lawsuit today against its former emergency medical service (EMS) billing and collections vendor, ACS State and Local Solutions, Inc. - now Xerox State and Local Solutions, Inc. (ACS/Xerox). The suit seeks a full financial accounting, a turn-over of city information and financial damages from the former vendor.


In May, the City instructed ACS/Xerox to suspend its billing efforts. Payments to ACS/Xerox are being held in suspense pending the results of the City’s investigation. "There is no reason to continue contracting with a service that has this many accounting discrepancies, which is why we have terminated the contract with ACS/Xerox,” said Mayor Annise Parker. "Houston taxpayers deserve transparency and fair dealing from its vendors, and those who pay for EMS and ambulance service deserve nothing less.”


There will be no interruption in ambulance service from the City of Houston. City Council will be asked to award a new contract for the billing and collection of EMS and ambulance fees at their next meeting on July 31, 2013.


According to City Attorney David Feldman, “the City has been frustrated in its attempts to obtain financial and account information related to the company’s billings for EMS and ambulance transports. The company’s seeming inability to provide the City with basic and accurate account and financial information has led to concern about their business practices, regulatory compliance and compensation.”


If City Council votes to pass the new contract, the new vendor will be Digitech Computer, Inc. Digitech has focused exclusively on the medical transportation industry for over 25 years and has a track record of improved collection performance for clients it serves. Digitech and HFD’s current software provider also have a long history of collaboration. The company’s extensive industry and implementation experience and technological and reporting capabilities are expected to provide a much needed boost to our collection efforts.


The lawsuit against ACS/Xerox was filed by the City’s Legal Department in the state district court of Harris County and is available here.