Title
Workers' Compensation Bill Review Services - RFP SAP 19-02, Amendment 2 (Ordinance S-51051)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Contract 150636 with Corvel Healthcare Corporation to extend the contract term for a one-year period and add additional expenditures. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $6,300,000.
Report
Summary
This contract will continue to provide workers' compensation bill review services for the Human Resources Department (HRD). Workers' compensation bill review services include reviewing and re-pricing bills associated with medical and indemnity benefit payments for City of Phoenix employees who have sustained an injury arising out of or in the course of their work while employed with the City.
The original Ordinance S-45880 was written for $1,200,000 for the five-year contract. The intent was to request $1,200,000 per year for an aggregate total of $6,000,000 over the five-year period. To remedy this, HRD requests approval for additional expenditures in the amount of $6,300,000. This amount includes the $4,800,000 million not captured on the original Ordinance S-45880, and $1,500,000 for the additional expenditures for the contract extension period. With the approval of the additional expenditures, the revised contract aggregate amount is $7,500,000.
Contract Term
Upon approval the contract will be extended through June 30, 2025.
Financial Impact
Upon approval of $6,300,000 in additional funds, the revised aggregate value of the contract will not exceed $7,500,000. Funds are available in the Workers' Compensation Program Trust Account.
Concurrence/Previous Council Action
The City Council previously reviewed this request:
- Workers' Compensation Bill Review Services Contract 150636, Ordinance S-45880, June 26, 2019.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.