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Home My WebLink AboutContract 31786Clilf S�CFiE I'MR�' �":. �_/,i", AMENDMENT TO CONTRACT No. 26923 CONTRACT iV� . �/ - WHEREAS, the City of Fort Worth and CMI Barron Risk Management Services, Inc. entered into City Secretary Contract No. 26923 on May 22, 2001; and WHEREAS, the City of Fort Worth and CMI Barron Risk Management Services, Inc. desire to amend City Secretary Contract No. 26923. Now, therefore, the City of Fort Worth, acting herein by and through Richard Zavala, its duly authorized interim assistant city manager, hereinafter referred as "City", and CMI Barron Risk Management Services, Inc., acting herein by through Bart Griffin, its duly authorized Senior Vice President, hereinafter referred to as CMI Barron Risk Management, do hereby agree as follows: 1. The Period January 1, 2005 through December 31, 2005, as shown in Item 4, Section C., page 13, of Fort Worth City Secretary Contract No. 26923 is hereby amended and after having been so amended shall be and read as follows: Claims administration for twelve months of claims handling, The City will pay twelve monthly installments of $50,226.58 each, for a total payment of $602,719.00. The claims handling charges are based on the following estimates of claims per year: 763 Indemnity, 908 Medical Only, 1 Record Only. CMI Barron Risk Management has identified an MWBE certified partner, Injury Management Organization, of 6404 International Parkway, Suite 2200, Plano, Texas as the firm we will utilize to provide medical case management services in conjunction with the administration of the City's claims. CMI Barron Risk Management will pay at least 6% of the contract price above, or $36,163.14, to the MWBE contractor for medical case management services. In accordance with the fee guidelines below the City will be invoiced monthly for medical case management services as incurred. If in any one contract year the total number of claims exceeds these estimates, the City will be billed on a per claim basis for those claims in excess of the estimates at the following rates. No Claim Reports Medial Only Claims [ndemnity (Lost Time Claims Requiring Indemnification) $22.00 each $110.00 each $659.00 each Conversion $88.00 each (From a No Claim Report to a Medical Only Claim) Conversion $637.00 each (From a No Claim Report to an Indemnity Claim) Conversion $549.00 each (From a Medical Only Claim to an Indemnity Claim) Additionally, the City will pay the following services fees: Administrative Services (TWCC Representative) Rehabilitation Services Case Management Services Telephonic On Site Loss Control Safety Engineering $3,782.00 Annually AT COST $63.00 per hour AT COST $79.00 per hour AT COST ., � - � ,, ��:�� v��)'�:=lL;!� ��1�',�%�:G'� �' ��, 7 i1 iC � . ��pti ��:ti�-� '::!:'��''C II u cU L�i�1. � '`l1�':`1 Computerized Medical Audit (includes Pre-Certification Services) NOTE: Pre-authorization charge if number of indemnity And medical only exceeds 1,453. Data Processing: Computer to Computer Dial-in and Read Capability Ad Hoc Reports Litigation Preparation (Optional) Utilization Reviews/Peer Reviews Desk Audits Allocated Expenses $103,724.00 annual fee Plus physician fees At Cost $67.00 per claim NO CHARGE NO CHARGE No charge. Expenses will be allocated $63.00 per hour plus Physician Fees AT COST See Allocated Expense Sheet Additional Medical Reduction for any medical service provided through the CMI Barron Risk Management preferred provider network, any reduction below the TWCC fee schedule shall be shared between the parties on the basis of 74/26. For example, for each $100 of savings to the City, City shall pay the CMI Barron Risk Management preferred provider network -$26. Other approved networks AT COST TWCC Hearings BRCs Attendance at CCHs Annual and Biannual Audits Surety Bond Takeover Claims (Injury date prior to January 1, 1998): No Charge $158.00 per CCH At Cost (no mark up) At Cost (no mark up) $400.00 each, encompassing adjusting services for the duration of this contract and any extension periods. The City may identify claims in which workers' compensation adjusting services are needed on claims where Third Party Administration services where not contracted out. 2. Item 4, Section D of City Secretary 26923 is hereby amended to add a new paragraph 8, which shall be and read as follows: 8. Performance goals are outlined below for CMI Barron Risk Management. The performance goals are established to benefit, evaluate, and improve upon the efforts of CMI Barron Risk Management throughout the term of this Agreement and any option period. The performance goals are established to evaluate progress, improvement, satisfaction and efficiency of services rendered for the City. CMI Barron Risk Management shall prepare quarterly reports to monitor the status of the performance goals. CMI Barron Risk Management and the City shall meet on a quarterly basis to review the status of the performance goals and discuss any issues related to such performance goals. No later than January 15`h of each year of this agreement, CMI Barron Risk Management shall prepare an annual report that measures its annual performance of each of the performance goals. In the event any one performance goal does not meet the performance requirements on annual basis as set forth below, CMI Barron Risk Management shall credit the annual incentive amount related to such unmet performance goal against amounts due from the City for services rendered by CMI Barron Risk Management in the month of January following the year for which the annual performance was measured. Measurement of these performance goals will be accomplished through internal verification by CMI Barron Risk Management personnel utilizing a random sample of claims reported by the City during the contract year. If the City prefers, a similar audit could be erformed _ by an independent organization selected by agreement between the City and qon Risk:. �� '��;p' Management, with any charges incurred passed through to the City with no markup by C��8rr6n Ri�k�t%'�J N � � �1 � ��'.� ,��'��`-��. ;� -,;;;.�, � U I'�p f�� `.>`'<�Ui�J1� �LSc � Management. The performance goals are set forth below. Performance Criteria Annual Incentives Lag Time: Claims should be entered in the CMI Barron system and if performance is 93% - 90%, assigned to an adjuster within one business day from the date of CMI CMI Barron Risk Management Barron's receipt of the loss report (excluding weekends and holidays.) will credit the City 3% of the total contract price. Target: 93% If performance is below 90%, CMI Barron Risk Management will credit the City 5% of the total contract rice. Initial Contact: Contact efforts must be documented in claim file If performance is 93% - 90%, within one business day from the date the adjuster is assigned. CMI Barron Risk Management will credit the City 3% of the Target: 930�o total contract price. If performance is below 90%, CMI Barron Risk Management will credit the City 5% of the total contract rice. Medical Bill Review: Bill review is to be completed, on average, within If performance is 93% - 90%, 10 days of the date the bill is received by the cost containment unit. CMI Barron Risk Management will credit the City 3% of the total contract price. Target: 93% If performance is below 90%, CMI Barron Risk Management will credit the City 5% of the total contract rice. 3. All other terms and conditions of City Contract No. 26923 not affected hereby continue in full force and affect. C I� � I EXECUTED on this � day of 1 _�� , 2005 pproval Recommended CI Y ORTH By: Cc., l��c,,o�� By: Karen Marshall, Director ichard Zavala Human Resources ssistant City Manager Approved as to form and legality � Assistant �ity Attorney ATTEST: � Marty Hendr , City Secretary � . ��-�-1-� Contract autharizatio� �� CMI Barron Risk Management Services, Inc. —� BY: v `- �� i�� Bart Griffin Senior Vice President ATTEST: Corporate Secretary �� 'l � � J /i1 1. VU�� V � ;,: ;� � ��p�� ::��,� ��lG?� �� ,.,�.J �: �w, ��3. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/21/2004 DATE: Tuesday, December 21, 2004 LOG NAME: 14BARRONEX4 REFERENCE NO.: **C-20447 SUBJECT: Authorize Renewal of Contract with Barron Risk Management Services, Inc. for Workers' Compensation Claims Administration Service RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute the fourth (of six) one-year contract renewal option with Barron Risk Management Services, Inc., for the period January 1, 2005 thru December 31, 2005, for a cost not to exceed $600,000. DISCUSSION: The City Council awarded Barron Risk Management Services, Inc. the contract to administer Workers' Compensation claims for occupational injuries on June 1, 2001 with six (6) options for one-year renewals (M&C C-18593). It is the recommendation of City staff to exercise the fourth renewal option with Barron Risk Management Services, Inc., effective January 1, 2005 thru December 31, 2005 for an estimated cost not to exceed $600,000 based on the following estimates: 763 Indemnity and 908 Medical claims. Barron Risk Management Services, Inc. has performed all aspects of the contract and services have been acceptable. They have also committed to provide additional performance guarantees based on claims processing and medical bill review time. Barron Risk Management Services, Inc. is in compliance with the City's M/WBE Ordinance, by committing to 6% M/WBE participation on this project. The City's M/WBE goal on this project is 5%. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, in the Workers' Compensation Fund. TO Fund/Account/Centers FROM Fund/AccountlCenters FE73 534830 0147310 $600.000.00 Submitted for City Manager's Office bk Originating Department Head: Additional Information Contact: Logname: 14BARRONEX4 Richard Zavala (Acting) (6222) Karen Marshall (7783) Mark Washington (8058) Page 1 of 1