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East Central ISD accepts termination of MSB billing contract, discusses interlocal with Houston ISD
Summary
At a board meeting, East Central ISD trustees accepted termination of a contract with MSB for Medicaid-related billing and discussed but did not record a vote to enter an interlocal agreement with Houston ISD for third-party medical billing services; staff said Houston ISD operates a billing business districts can use.
The East Central ISD Board of Trustees on Thursday accepted termination of the district's contract with MSB for Medicaid-related billing services and discussed entering an interlocal agreement with Houston ISD to provide third-party medical billing services, officials said during the meeting.
A district staff member told trustees that the district can receive Medicaid reimbursements for support services provided to students with special needs if services are appropriately documented and submitted. "Our partnership with MSB is not working out, and our legal team is consulting theirs and they agree to accept the termination of that contract," the staff member said.
The exchange matters because Medicaid reimbursements can offset district costs for services provided to eligible students. The staff member said the district can "receive a percent of reimbursal" for such services but did not specify what percentage the district expects to recover.
Trustees moved on to Item 5.2, described in the meeting as "consider, discuss, and take possible action to enter into the interlocal agreement with Houston ISD, the third party medical billing services." A district staff member said Houston ISD operates a business that provides medical-billing services to other districts and has done so for several years. The transcript does not record a vote or any tally on Item 5.2; the record shows only discussion and staff description of Houston ISD's offering.
The meeting record indicates staff reviewed previous vendors: the district previously contracted with TASB and then with MSB before the current termination. The staff member said Houston ISD now operates a standalone business unit offering the service to districts.
Board members asked questions and the staff noted a follow-up item will be brought to the board; the transcript records "The next item will be a follow-up to this." The meeting did not include a detailed breakdown in the transcript of projected revenue from Medicaid reimbursements, contract terms with MSB, or specific dates for implementation if an interlocal agreement with Houston ISD is pursued.
Next steps recorded in the meeting: the board accepted the termination of the MSB contract (motion carried) and staff indicated they will bring a follow-up item regarding third-party billing and potential interlocal options with Houston ISD.
