City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01048 10/24/2023 Consent Item 17.
Approval of Contracts for Workers' Compensation Medical Services (2/3 Vote Required) File ID: 2023-01048
Location: Citywide
Recommendation: Pass a Motion 1) waiving the requirement for 10-day posting of agreements over $1 million, required by City Code section 4.04.020(c) and City Council Rules of Procedure Section 7(E)(2)(d) (2/3 vote required); and 2) authorizing the City Manager, or City Manager’s designee, to execute Professional Services Agreements for Workers’ Compensation Medical and Psychological Services for City Employees with 1) Dignity Health Medical Foundation DBA Mercy Medical Group Occupational Medicine with a cost not to exceed $2,000,000; 2) Occupational Health Centers of California, a Medical Corporation dba Concentra Medical Centers with a cost not to exceed $1,000,000; 3) MyNP.com Nursing Corporation with a cost not to exceed $200,000; and 4) MDRS Spine and Sport Physical Therapy with a cost not to exceed $150,000.
Contact: Natalie Dempsey, (916) 808-7260, [email protected], Human Resources Presenter: None
Attachments:
1-Description/Analysis
2-Contract with Dignity Health Medical Foundation DBA Mercy Medical Group Occupational Medicine 3-Contract with Occupational Health Centers of California, a Medical Corporation dba Concentra Medical Centers
4-Contract with MyNP.com Nursing Corporation
5-Contract with MDRS Spine and Sport Physical Therapy
Description/Analysis
Issue Detail: The current contract for Workers’ Compensation Medical and Psychiatric Services, spanning three years with subsequent contract extensions, is set to expire in October 2023. On May 3, 2023, the City issued the Request for Proposals P23081371002, aiming to procure Workers Compensation Medical and Psychiatric Services from proficient providers capable of delivering highquality medical and psychiatric treatment for City employees' work-related injuries and illnesses. The RFP received a total of five proposals. Each proposal underwent thorough evaluation by a dedicated four-person review panel, consisting of City staff well-versed in the requirements and intricacies of
File ID: 2023-01048 10/24/2023 Consent Item 17.
the City's Workers' Compensation Program.
Proposal ratings were based on the evaluation criteria listed in the RFP:
Cost of services 25
Prior experience 30
Technical compliance with the RFP Specifications 15
Quality, ability, capacity and skill of the proposer to perform the duties specified in the RFP
15 The character, integrity, reputation, judgement, experience and efficiency of the proposer
10 Local Business Enterprise (LBE) 5
The panelists thoroughly assessed and recommended establishing contracts with all five of the firms that submitted RFPs.
· Dignity Health Medical Foundation DBA Mercy Medical Group Occupational Medicine · Kaiser Permanente On-the-Job
· Occupational Health Centers of California, a Medical Corporation dba Concentra Medical Centers
· MyNP.com Nursing Corporation
· MDRS Spine and Sport Physical Therapy
The City has not yet successfully negotiated the terms of a contract with Kaiser Permanente On-theJob, but are still working to do so, and will bring that contract forward upon completion.
Policy Considerations: The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1 million shall be made available to the public at least ten (10) days prior to council action.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by CEQA Guidelines sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA. (CEQA Guidelines, section 15060(c)(3).)
Sustainability: Not applicable.
File ID: 2023-01048 10/24/2023 Consent Item 17.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: In accordance with City and State policies, as well as legal requirements, the Workers' Compensation Unit of the City of Sacramento is required to provide Workers’ Compensation Medical and Psychiatric services for its self-insured, self-administered Workers' Compensation program. Medical providers will conduct medical and psychiatric evaluations, deliver essential treatment services, and furnish the necessary medical reports for work-related injuries/illnesses in compliance with the Medical Treatment Utilization Schedule (MTUS) mandated by the Division of Workers' Compensation, as well as other evidence-based medical guidelines. These providers are expected to collaborate closely with the City to facilitate the prompt return of injured employees to either full-duty or light-duty assignments following work-related injuries/illnesses. To ensure the continuation of these vital services beyond the expiration of the current contract, establishment of new contract(s) is necessary.
Since the existing contracts for these services expire at the end of October, 2023, it is vital that the City Council waive the 10-day notice requirement for these contracts to ensure that City employees continue to receive necessary medical care in association with workers’ compensation claims.
Financial Considerations: The estimated total not-to-exceed amount of $7.35 million for the five contracts, plus any subsequent contracts included through additional sourcing events, will be funded through the Human Resources Department Workers’ Compensation Fund. Funding for future fiscal years beyond fiscal year 2023/24 and any supplemental contracts is subject to Council approval.
Local Business Enterprise (LBE): LBE Preference was included in the sourcing event. Dignity Health Medical Foundation DBA Mercy Medical Group Occupational Medicine, Kaiser Permanente, Occupational Health Centers of California, a Medical Corporation dba Concentra Medical Centers, MyNP.com Nursing Corporation, and MDRS Spine and Sport Physical Therapy all qualify as a Local Business Enterprise (LBE).
SIGNATURES
The parties have signed this Contract, effective as of the day and year first stated above.
CONTRACTOR
Under penalty of perjury, I certify that the information provided here is correct.
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Title: Founder
Additional Signature (if required):
Title:
CITY OF SACRAMENTO
A Municipal Corporation
APPROVED AS TO FORM:
Signature: � Brett M Witter (Oct 5, 202315:53 PDT)
Title: Assistant City Attorney
SIGNATURES
The parties have signed this Contract, effective as of the day and year first stated above.
CONTRACTOR
Under penalty of perjury, I certify that the information provided here is correct.
Title: Vice President, Business Development and Payor Relatio Additional Signature (if required):
Title:
CITY OF SACRAMENTO
A Municipal Corporation
APPROVED AS TO FORM:
Signature: ote�t M Witter
Brett M. Witter (Sep 25, 2023 09:35 PDT)
Title: Assistant City Attorney