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HomeMy WebLinkAboutContract 52069-A2 DocuSign Envelope ID:4BO84AEO-1 DCO-4B7C-8AOC-7A337F C DAB E2 CSC No.52069-A2 SECOND AMENDMENT TO FORT WORTH CITY SECRETARY CONTRACT (CSC# 52069) This Second Amendment to City Secretary Contract(CSC)52069 ("Second Amendment' is made between the City of Fort Worth ("Fort Worth"), a municipal corporation and SmartLight Analytics, LLC, ("Consultant"). WHEREAS, Fort Worth and Vendor entered into an Agreement identified as Fort Worth City Secretary Contract No. 52069 beginning March 15, 2019 (the "Agreement"); and WHEREAS, it is the collective desire of both Fort Worth and Vendor to amend the Agreement to change the "Term" of the agreement to five (5) years; and WHEREAS, it is the collective desire of both Fort Worth and Vendor to amend the agreement to change the "Compensation" of the agreement to the following: From March 1, 2022 through September 30, 2022, the City will pay Vendor$3.50 Per Member Per Month (PMPM) From October 1, 2022 to December 31, 2022, the City will pay Vendor $3.75 (PMPM) From January 1, 2023 ongoing, the City will pay Vendor $4.25 (PMPM) to a maximum of$600,000 per year. NOW THEREFORE,known by all these present,Fort Worth and Vendor, acting herein by the through their duly authorized representatives, agree to the following terms, which amend the Agreement as follows: 1. Section 2. Term of this agreement is deleted and replaced in its entirety with the following: Term: This Agreement shall begin on March 18, 2022 ("Effective Date") and shall expire on March 17, 2027 ("Expiration Date"), unless terminated earlier in accordance with this Agreement ("Initial Term"). City shall have at its discretion, to renew this Agreement under the same terms and conditions for up to five(5)one- year renewal options at the City's sole discretion. 2. Compensation: City shall pay Consultant an amount not to exceed six-hundred thousand dollars ($600,000) in accordance with the provisions of this Agreement and Exhibit"B", Price Schedule, which is attached hereto and incorporated herein for all purposes. Consultant shall not perform any additional services for City not specified by this Agreement unless City requests and approves in writing the additional costs for such services. City shall not be liable for any additional expenses of Consultant not specified by this Agreement unless City first approves OFFICIAL RECORD Amendment to (CSC# CITY SECRETARY FT. WORTH, TX DocuSign Envelope ID:4BO84AEO-1 DCO-4B7C-8AOC-7A337F C DAB E2 such expenses in writing. City agrees to pay all invoices of Consultant within thirty (30)days of receipt of such invoice. 3. Exhibit B, Price Schedule, is hereby amended to add the following: PRICING AND TERMS Concurrent Review—Medical + Pharmacy Period Number of Concurrent Monthly Fee Annual Fee Members Review Fee 3/18/22 — 11,410 $3.50 $39,585 $474,020 9/30/22 10/1/22 — 11,410 $3.75 $42,788 $513,450 12/31/22 1/1/23 — On 1 11,410 1 $4.25 1 $48,493 1 $581,910 4. All other terms,provisions,conditions,covenants and recitals of the Agreement not expressly amended herein shall remain in full force and effect. [Signature Page Follows] Amendment to (CSC# ) Page 2 of 4 DocuSign Envelope ID:4BO84AEO-1 DCO-4B7C-8AOC-7A337F C DAB E2 Executed effective as of the date signed by the Assistant City Manager below. City: Vendor: DocuSigned by: By: Reginald Zeno(Apr 15,2022 12:27 CDT) By: ;DC8CCFD358C46B... Name: FReginald ZenoName: B. Asha George Title: Assistant City Manager Title: chief Executive officer Date: Apr15,2022 Date: February 7, 2022 CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approval Recommended: Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration Aathae of this contract,including ensuring all performance By: Nathan Gregory(Apr 4,262211 0CDT) and reporting requirements. Name: Nathan Gregory Title: Deputy Di—t—f n—n Reso—. 9durc`ce-tlihfv� Joanne Hinton(Apr4,202214:43 CDT) By: Approved as to Form and Legality: Name: Joanne"irton Title: Benefits Manager By: City Secretary: Name: JBstrong OR oo�OF00000 �od� Title: Assistant City Attorney ,� 00 o° o 0j ee �'0 o•ld B J nette S.Goodall(Apr15,202213' CDT) i1y0 O�A y' Y o d Contract Authorization: Name: Jannette s.Goodall ��� 000 *'C/ XY M&C: 22-o21s Title: City Secretary aa��AEX04aA' OFFICIAL RECORD CITY SECRETARY Amendment to (CSC# ) FT. WORTH, TX DocuSign Envelope ID:4BO84AEO-1 DCO-4B7C-8AOC-7A337F C DAB E2 EXHIBIT A Amendment to (CSC# ) Page 4 of 4 4/15/22,3:46 PM M&C Review Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoRT °RTI_� Create New From This M&C DATE: 3/29/2022 REFERENCE **M&C 22- LOG NAME: 14SMARTLIGHTAMENDMENT NO.: 0213 CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (ALL) Authorize an Amendment to a Professional Services Agreement with SmartLight Analytics to Adjust the Compensation and Term for an Amount Up To $600,000 Per Year for Five (5) Years. RECOMMENDATION: It is recommended that the City Council authorize an amendment to a Professional Services Agreement with SmartLight Analytics to adjust the compensation and term for an amount up to $600,000 per year for a period of five (5) years. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to seek authorization from the City Council to amend a Professional Services Agreement (City Secretary Contract No. 52069) with SmartLight Analytics, LLC to adjust the compensation and term of the contract for an amount up to $600,000.00 per year for a period of five (5) years. In 2019, the City of Fort Worth (City) contracted with SmartLight Analytics to provide claim review for the City's Medical and Pharmacy plans. In 2021, SmartLight Analytics saved the City $2.6 million in fraud, waste and abuse claims and identified 17 pharmacies engaged in fradulent practices which had the potential to cost the City $800,000.00. Through their data analytics and clinical expertise, SmartLight is be able to identify fraudulent billing such as: pass-through billing schemes where unscrupulous physicians route billing to out-of-network labs who in turn send the claims to in-network rural hospitals for claims submission in order to receive reimbursement at 20-30X average payments or; medically unnecessary abusive urine drug screening and genetic testing claims; and/or identifying claims submitted that violate the anti-kickback laws. SmartLight's monitoring of wasteful claims also includes, monthly interventions to reduce: overuse of emergency rooms services; billing of medically unnecessary services such as long-term, high frequency testosterone replacement therapy; and/or payments for misrepresented services (such as investigational treatment of sublingual hormone drops billed as allergy treatment); payments for non-rendered services (based on patterns that are medically unlikely), coding errors, or duplicate payments that bypass the plan administrator's adjudication process. Once a wasteful claim is identified, SmartLight passes that information on to our current medical and prescription providers and works within the administrator's existing processes to deny and/or credit payments back to the City. Additionally, our medical or prescription providers may report these findings to authorities to help curb the abuse throughout the healthcare system. SmartLight provides a quarterly report on progress of refunded payments to the City. SmartLight Analytics is a WBE Certified Business. Funding is budgeted in the Consultant & Other Professional Service account of the Human Resource Health Benefits Admin Department's Group Health Insurance Fund apps.cfwnet.org/council_packet/mc_review.asp?ID=29767&councildate=3/29/2022 1/2 4/15/22,3:46 PM M&C Review FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously appropriated, in the Group Health Insurance Fund. Prior to an expenditure being made, the Human Resources Department has the responsibility to validate the availability of funds. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) �� FROM Fund Department Account Project Program Activity Budget Reference # Amount ID I I ID I I Year (Chartfield 2) Submitted for City Manager's Office by_ Reginald Zeno (8517) Originating Department Head: Dianna Giordanno (7783) Additional Information Contact: ATTACHMENTS 14SMARTLIGHTAMENDMENT funds availability pdf (CFW Internal) 14SMARTLIGHTAMENDMENT Updated FID table.xlsx (CFW Internal) Form 1295 Certificate 100868286.pdf (CFW Internal) SmartLight Analytics FID table.xlsx (CFW Internal) a pps.cfwnet.o rg/council_packet/mc_review.asp?I D=29767&cou nci Idate=3/29/2022 2/2