From
Lisa Norris
Title
Renewal agreement with Airrosti Rehab Centers, L.L.C. for rapid recovery treatment of acute and chronic soft tissue conditions effective June 15, 2012 for a one-year period, with annual renewals, at a rate of $385 per visit up to an estimated annual cost of $171,000. Renewals may be executed by the City Manager so long as the cost is appropriated annually in the budget and the total payments do not increase by more than 25% of the original contracted fees
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
The City contracted with Airrosti in June 2011 after recognizing musculoskeletal issues were our top diagnosis for claimants who had over $50,000 in claims. This high-cost claimant group increased by 13% from 2010 to 2011 and accounted for 58% of costs for this high-cost claimant group at that time. Human Resources decided to offer this wellness program as an alternative to routine treatment following in-depth review of their unique solution and hands-on approach, treatment method and rapid resolution soft tissue injuries and pain, allowing employees to return to work quickly and safely over traditional treatment methods such as physical therapy and chiropractic care. The original contract allowed for automatic renewals annually unless terminated, but Legal recently advised staff that we need to complete a renewal document, even though we are past the original renewal date. Further, although the price per visit has not changed, utilization increased resulting in contract fees over $50,000 for services, thereby needing council approval.
Airrosti's treatment model offers a higher value, evidenced based treatment option for employees at a $10 reduction of their normal doctor visit copay to encourage utilization for musculoskeletal conditions. Airrosti performs in-depth condition review with each patient and treatment effectiveness at each visit, then track outcome data at the employer level. A routine appointment takes approximately one-hour per visit. Airrosti's best practice treatment model consists of one-on-one individualized sessions, allowing for more accurate assessment and diagnosis of conditions and avoids or reduces costs associated with imaging, pharmaceuticals, surgery and long term treatment often associated with physical therapy and chiropractic care. Airrosti has proven success in resolving issues within approximately 2.7 visits for our group, and 2.9 visits in their book of business, occurring over typically a two- to three-week period. Our experience has been excellent and patient satisfaction extremely high following review of our first year's contract and outcomes (See Attachment) with 237 cases reported. Of our 187 patients answering questions on the post-treatment assessment, 88% indicated Airrosti resolved their condition and 91% indicated Airrosti prevented further medical services for the condition. Further, by utilizing this rapid recovery model, staff feels confident we have also likely reduced absenteeism and increased "presenteeism" at work -costs that are often forgotten in assessment of overall impact of lost time at work. Airrosti has been a proven partner and our relationship with them excellent, as they have assisted in all facets of the communication campaign. They have helped us created a YouTube video explaining Airrosti benefits (search Airrosti-Grand Prairie Benefit) for our employees, have participated in several "Experience Airrosti" days with Fire, Public works and general Lunch-n-Learn/Breakfast Sessions, as well as an upcoming session with Police, and provided numerous complimentary sessions via drawings so personnel with conditions can try Airrosti at no cost. Recently, Airrosti opened two new sites in Grand Prairie so treatment will be even more convenient.
Staff recommends renewal effective June 15, 2012 through June 14, 2013, allowing continued renewals if the program remains efficient and outcomes positive. Staff continues to review this annually as part of the overall wellness program effectiveness.
Financial Consideration
Airrosti is paid through claims just as any other form of treatment and since they are billed just as any other doctor visit. Costs paid to Airrosti this fiscal year through July 2012 are $142,325, with approximately $170,791 projected by fiscal year-end. Based on the average monthly cost of $14,233, we project fiscal year costs for 2012-2013 to total approximately $171,000. It is estimated Airrosti rapid recovery treatment model has saved approximately $555,000 in claims over what could have been billed for these conditions through routine and traditional treatment.