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...
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