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HomeMy WebLinkAboutContract 45525-R1 CSC No. CITY OF FORT WORTH CONTRACT RENEWAL NOTICE CITY SECRETAW CONTRACT NO. 3/10/17 Compass Professional Health Services 3102 Oak Lawn, Ste.215 Dallas,TX 75219 Re: NOTICE OF CONTRACT RENEWAL Transparent Pricing and Quality Metrics for Healthcare Contract No.CSC No.45525(the"Contract") Renewal Term No. 1:April 9,2017 to April 8,2018 The above referenced Contract will expire on April 8, 2017. Pursuant to the Contract, contract renewals are at the sole option of the City.This letter is to inform you that the City is exercising its right to renew CSC No.45525 for an additional one year period,which will begin immediately upon the expiration of the current term and will end on April 8, 2018. All other terms and conditions of CSC No. 45525 remain unchanged. Please return this signed acknowledgement letter, along with a copy of your current insurance certificate,to the address set forth below,acknowledging receipt of the Notice of Contract Renewal. Please log onto BuySpeed Online at http://fortworthtexas.gov/purchasin to insure that your company information is correct and up-to- date. If you have any questions concerning this Contract Renewal Notice,please contact me at the telephone number listed below. Sincerely yours, Darian Gavin,Contract Compliance Specialist FMS,Purchasing Division 817-392-2057-Direct 817-392-8440-Fax I hereby acknowledge receipt of the Contract Renewal Notice for CSC No.45525 for a one year period ending on April 8,2018. By: Sce—x/ C lb,Fw lrb(�fz l —�d e: Printed Na nd Titl F OR;P� -<gnalUre V.+ CITY OF FORT WORTH: * ' EST: 31r S Su an ganis,Assistant City Manager `mss Mary J.Kayser,City Secretary Date: ?j I,j I o 1 M&C No. P-11638 OFFICIAL.RECORD CITY SECRETARY FT.!NORTH,TX CSC No. Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract,including ensurin all performance and reporting requirements. A//- ;;�n Name of floyce Title M&C Review Page I of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FaRr1 COUNCIL ACTION: Approved on 4/8/2014 REFERENCE ** 13P14-0112 COMPASS DATE: 4/8/2014 NO.: P-11638 LOG NAME: HEALTHCARE CC CODE: P TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Agreement for Consumer Healthcare Tools and Support for the Human Resources Department with Life Account, L.L.C., d/b/a Compass Professional Health Services, Using a Cooperative Contract in an Amount Up to $500,000.00 Annually for the Initial Three-Year Term (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council authorize execution of an Agreement for consumer healthcare tools and support for the Human Resources Department with Life Account, L.L.C., d/b/a Compass Professional Health Services, using City of Frisco Contract No. 1303-035 in an amount up to $500,000.00 annually for the initial three-year term. DISCUSSION: The Human Resources Department will use this Agreement to give City employees the ability to obtain pricing and service-quality information, scheduling assistance, and other comprehensive assistance services associated with healthcare and benefits (healthcare concierge services). Based on experience of other users, this service is expected to positively impact the quality of care received and to reduce the overall costs for both the City and individuals who take advantage of the service. Life Account, L.L.C., d/b/a Compass Professional Health Services (Compass), will analyze the City's claims data and determine its highest cost drivers and then recommend appropriate interventions to impact those cost drivers. Compass consumer advocates will use the tool to give City employees cost and quality comparisons for medical services. As an added benefit, Compass consumer advocates will support employees in appointment scheduling, bill review, and other concierge services. The proposed Agreement is for a three year period with three, one-year renewal options. During the initial term, services would be provided for a fee of$4.50 per-plan-participant, per-month (pmpm) plus an annual allocation in the amount of$150,000.00 for participant incentives, which equates to a total amount of$1,500,000.00 for the entire three-year term and an annual amount of$500,000.00 per year. Approval of this M&C includes funding for this Agreement through the remainder of Fiscal Year 2014. The remaining funding for the initial term will be provided through future budget processes. Should the City fail to fund the remainder of the initial term, the City shall have the right to cancel the Agreement. Compass estimates that the City's healthcare plan will realize claims savings of$4.8M per year. In the first year of the contract, claims savings will be achieved by: Using Compass and the City's claim data to identify higher value service providers in the local and regional market; Engaging employees who are currently using healthcare services or are anticipated to use healthcare services in the near future with cost and quality information; Educating all employees on how to become better healthcare consumers and when to use Compass http://apps.cfwnet.org/council_packet/mc_review.asp?ID=19647&councildate=4/8/2014 3/30/2017 M&C Review Page 2 of 2 services; and Guiding employees through the healthcare process by interpreting benefits, finding accessible care providers, scheduling appointments, and reviewing bills. COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a Cooperative Purchasing Agreement satisfies state law requiring that the local government seek competitive bids for purchase of the item. In accordance with M&C P-10710, the City entered into an Interlocal Cooperative Purchasing Agreement with the City of Frisco (Frisco) that allows the cities to take advantage of each other's competitively bid contracts. The Frisco awarded Contract No. 1303- 035 for healthcare concierge following a competitive bidding process. M/WBE OFFICE -A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. ADMINISTRATIVE CHANGE ORDER -An administrative change order or increase may be made by the City Manager in the amount up to $50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated. AGREEMENT TERMS - Upon City Council approval, the Agreement shall begin on April 9, 2014 and will expire on April 8, 2017. RENEWAL OPTIONS -This Agreement may be renewed for up to three additional one-year terms at the City's option provided that Frisco renews its contract with Compass. This action does not require specific City Council approval provided that sufficient funds are appropriated for the City to meet its obligations during the renewal period. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Group Health and Life Insurance Fund. BQN\14-0112\CC TO Fund/Account/Centers FROM Fund/Account/Centers FE85 531200 0148510 $279,825.00 Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Aaron Bovos (8517) Additional Information Contact: Jack Dale (8357) Cristina Camarillo (8355) ATTACHMENTS http://apps.cfwnet.org/council_packet/mc_review.asp?ID=19647&councildate=4/8/2014 3/30/2017