HomeMy WebLinkAboutContract 45525-A1 CITY SECRETARY
CONTRACT NO.
CITY SECRETARY CONTRACT NO.
AMENDMENT NO. 1 TO
CITY SECRETARY CONTRACT NO. 45525
TRANSPARENT PRICING AND QUALITY METRICS FOR HEALTHCARE
This Amendment is entered into by and between the City of Fort Worth (hereafter
"City"), a home rule municipal corporation situated in portions of Tarrant, Denton and Wise
Counties, Texas, with its principal place of business at 200 Texas Street, Fort Worth, Texas, and
LIFE ACCOUNT, LLC. D/B/A COMPASS PROFESSIONAL HEALTH SERVICES,
(hereafter"Client"), an individual.
WHEREAS, the parties have previously entered into City of Fort Worth City Secretary
Contract No. 45525 (the "Contract"), which was executed on April 23,2014; and
WHEREAS,the Contract for the purpose to serve as healthcare consultant for transparent
pricing and quality metrics, and to provide certain specified benefits to the Plan and its
participants;and
t
WHEREAS, the original Fee Schedule of the Contract will pay Compass $4.50 per
employee per month for consumer consulting services; and
WHEREAS,the City and Client,now wish to revise the Fee Schedule of the Contract for
continued services pursuant to the original Contract.
NOW, THEREFORE, City and Client acting herein by the tlu-ough their duly authorized
representatives, enter into the following agreement to amend the contract:
1.
Exhibit E-1, Fee Schedule. The fee of the Contract is hereby amended to pay Compass
$4.00 per employee per month for consumer consulting services, unless terminated earlier in
accordance with the Contract.
2.
All other provisions of the Contract which are not expressly amended herein shall remain
in full force and effect. f�,
Executed on this the�_ day of Al r C 12017.
OFFICIAL ROCORD
CITY SECRETARY
FT.WORTH,TX
R
CITY OF FORT WORTH: LIFE ACCOUNT, LLC. DMA COMPASS
PROFESSIONAL ALT VICES
By: 7
Eric:Boricker
Susan I n l
Assistant City Manager Chief Medicaldff,cer
Date: 3 1!:,�-rb 1-6-01 Date: Z
ATT S, OR
....... ....
By:
,
ATT
J. Kayser,
✓City Secretary
APPROVED AS TO FORM AND LEGALI
By:
Xoslyn Y.Hood'
Assistant City Attorney
Contract Authorization:
M&C: P-11638
Date: April 8,2014
CONTRACT COMPLIANCE MANAGER:
By signing I acknowledge that I am the person
responsible for the monitoring and
administration of this contract, including
ensuring all performance and reporting
requirernre .
By:
Name:
Title:
CFW/LIFE ACCOUNT,LLC.D/B/A COMPASS PROFESSIONAL HEALTH SERVICES
Page 2 of 2
OFFICIAL RECORD
rliy SECRETARY
Fn.WOWN,TX
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORTH
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 4/3/2017
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 4/3/2017