TO: Mayor and Commissioners
FROM: Thersa Webb, Chief Purchasing Officer
THROUGH: Donald B. Cooper, City Manager
DATE: September 20, 2016
Title
MEDICAL SERVICES PROVIDER AT THE EMPLOYEE HEALTH AND WELLNESS CENTER EFFECTIVE OCTOBER 1, 2016
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Recommended Action:
Recommendation
Motion to Approve the terms provided herein and execute an agreement with Concentra as the medical services provider for the City’s Employee Health and Wellness Center consistent with these term in a not-to-exceed annual amount of $988,607
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Background:
On March 7, 2016 a Request for Proposals RFP No. 2016-077 was issued to obtain proposals from firms providing medical services for the City of Delray Beach Employee Health and Wellness Center. On August 16, 2016 Commission authorized staff to enter into negotiations for an agreement for medical services. Staff, in cooperation with the City benefits consultant, Gehring Group, has finalized an agreement with Concentra. As a result of these comprehensive negotiations Concentra has agreed to extend the operational hours of the clinic from the current thirty-two hours per week to forty-two and one half hours per week, including the addition of extended evening hours on Mondays and Tuesdays with no lunch time closure. With these additional hours, The negotiated annual cost is a not to exceed $988,607 per year for the three year term. Based on the City’s current Agreement, the extended hours would have been at a cost of $1,028,697 for the three year period. This new Agreement represents an annual savings of $40,090, or $120,270 for the three-year term, and includes an additional ten operational hours.
By providing employees and their enrolled dependents access to an onsite wellness center, the City has realized medical plan savings of $516.686, after operational costs, for 2015 for a return on investment of 1.59:1. Additionally, employees have saved $164,351 in direct health plan payments by utilizing the services provided by the Clinic. For 2016, based on the current utilization of the Clinic, the City is on track to realize an estimated medical plan savings of $681,512, after operational costs, for a return on investment of 1.75:1, with employees realizing an estimated savings of $189,004 in health plan payments.
Concentra has also agreed to update their current patient electronic record system at no cost to the City. Currently the City provides the facility with internet access and network capabilities. With this update, Concentra will assume all responsibilities for the computer systems at the Clinic, including all internet access and technical support. With Concentra assuming the system support role for the Clinic the City’s IT Department will no longer provide technical support or internet access, which provides the City’s both savings in internet fees and employee hours. This upgrade to the Concentra electronic record system will provide nationwide access to the employee’s medical record at any Concentra facilities. Should a City employee or covered family member require medical care at any time, the physician will have access to the employee medical records indicating any current care and medications provided by the Clinic. Additionally, the Clinic physician will be notified of any care a participant may have received at any Concentra facility and will be able to follow up with the participant to provided additional care as necessary.
Another important aspect of the negotiations, staff has been able to confirm the continued services of the current Clinic staff, which have had a significant positive impact on employee participation which has increased seventy percent during the last twelve (12) months. It is also important to note that forty-five percent or approximately $415,000 of the Clinic’s operational costs are directly attributable to occupational health services, which include pre-employment physicals, required regulatory examinations, Police and Fire annual physicals and drug screenings.
This motion is in accordance with City Code of Ordinances Section 36.02 (A) (2), "Methods of Acquisition, Requests for Proposals, Requests for Qualifications and Requests for Letters of Interest".
City Attorney Review:
Approved as to legal form and sufficiency.
Finance Department Review:
Finance recommends approval.
Funding Source:
Funding is available from the medical plan through employer and employee contributions.
551-1577-591-34.90 Other Contractual Services $ 923,187
551-1577-591-41.10 Telephone Charges $ 850
551-1577-591-43.10 Utility Services $ 5,200
551-1577-591-44.20 Facility lease $ 51,000
551-1577-591-46.10 Maintenance upkeep $ 1,000
551-1577-591-51.20 Office Supplies - Copier $ 4,000
551-1577-591-51.90 Office Supplies - Paper, etc. $ 2,000
551-1577-591-52.20 General Operating Supplies - $ 1,370
Stericycle Medical Waste
Timing of Request:
The new contract needs to be implemented by October 1, 2016, to maintain the current facility lease for the Employee Health and Wellness Center.