From
Lisa Norris, Human Resources Director
Title
Contract with Employer Direct Healthcare, LLC ("EDH") for administrative service fees to access their network of surgeons and facilities offering bundled pricing beginning in August 2017 for an annual cost not to exceed $100,000, through a Master Interlocal Agreement with the City of Fort Worth for one year with the option to renew for four additional one year periods totaling $500,000 if all extensions are exercised; and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
This contract allows the City of Grand Prairie to utilize EDH (also commonly referred to as "SurgeryPlus") for bundled pricing on many surgical procedures at certain authorized facilities within their network. We pay administrative fees to access their network and bundled pricing contracts. This bundled pricing is through high quality and care providers/surgeons at substantially reduced bundled rates for our employees, retirees and their covered family members on our plan. The administrative fees paid includes the production of marketing materials, meetings onsite to advertise the product, summary analytics/reporting on a regular basis to the city regarding utilization and marketing material effectiveness, etc. This contract through Fort Worth was generated from the North Texas Coalition efforts in which Grand Prairie sits on the Executive Committee for that group, along with Plano, Fort Worth, and Dallas. While the cost is projected to be $100,000 per year for services, we fully expect that over the course of that year, the savings from procedures completed will far the annual fees (similar to our Compass arrangement) an...
Click here for full text