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HomeMy WebLinkAboutResolution - 4444 - Letter Agreement - Insurance Partners Of The Southwest Inc - Benefits Proposals - 04_14_1994Resolution No. 4444 April 14, 1994 Item #20 RESOLUTION THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock a letter agreement for professional services in connection with evaluation of benefits proposals by and between the City of Lubbock and Insurance Partners of the Southwest, Inc., attached herewith, which shall be spread upon the minutes of Council and as spread upon the minutes of this Council has constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 14th day ATTEST: 'Betty M. lohnso'-;Ltity Secretary APPROVED AS TO CONTENT: Mary Andre , Director of Human Resources APPROVED AS TO FORM: I96nald G. Vandiver, — First Assistant City Attorney dp: ccdocs\cones. res April 6, 1994 INSURANCE PARTNERS SOUTHWEST. INC. >C ) K -0(t v !-A"I' i3AY. MA( A!.AM4- April 6, 1994 Ms. Lou Moore Benefits and Compensation Manager City of Lubbock P.O. Box 2000 Lubbock, TX 79457 Dear Ms. Moore: Resolution No. 4444 April 14, 1994 Item #20 It was a pleasure visiting with you on the phone on March 31, 1994. As per our phone conversation, the purpose of this letter is to document my scope of services and to travel to Lubbock and spend the day with you and your staff evaluating the proposals which you have received for a Preferred Provider Hospital Only offering for the employees of the City of Lubbock, Texas. My understanding is that this would be a quantitative and qualitative review of all proposals rendered. SCOPE OF SERVI E (1) Evaluate all proposals based on the following: Per Diem Schedules DRG Costs Global Pricing Applicable Discounts within the hospital setting (2) Evaluation of access standards. The qualitative part would be a review of the distribution of City of Lubbock employees based on their respective zipcodes compared to the hospital network. VFcVtmVou 10331.1tt 2V { t 1111i11 CRI1Jl tUID/StlfT! I t00r10CK �QK ! � 1 NAl1AS, t LKAS r f l wq 1 ��) S3o•�W4'MrY. (21 �) SS9 1361 (3) Professional Fees. The professional fees quoted are charges that will not include out-of-pocket expenses. These expenses Include travel, phone, mail delivery, copying, computer time and word processing. Our fees are due and payable at our Dallas office within 30 days of presentation of our invoice. Fees will not exceed $1,500. Sincerely, 4,oat X WeL w4u 4 Randall R. Martell, HIA Director of Corporate Benefits and Consulting RR Vrcjrrm%1ou 10331.Jtr MEMO CITY OF LUBBOCK TO: Bob Cass, City Manager FROM: Mary Andrews, Managing Director of Human Resources DATE: April 6, 1994 SUBJECT: Consultant for the Benefits Committee Since we are unable to use our third party administrator, First Health, to evaluate the proposals that will be forthcoming on the PPO RFP, the Benefits Committee is recommending that we utilize a consultant to assist us in evaluating those proposals. The amount of money to be saved by utilizing a PPO is considerable; however, it is very difficult to determined the best discount due to the complicated pricing that hospitals can use and the complexity of billing and re -pricing their various services. The Benefits Committee is aware that we do not have the expertise to insure that the best contract is awarded. Lou obtained three contracts from consultants to spend the day with the Benefits Committee to help us set up our criteria for evaluating the proposals and to answer any questions or give advice during the process. We looked in Lubbock for people with this expertise, but they were in some way associated with those who are anticipated to send in proposals. The Committee thought that it would be best to have someone assist us who had no connections to anyone in our local medical industry. Attached you will find a contract from Insurance Partners of the Southwest out of Dallas. They had the lowest cost of $1,500 plus expenses, which would primarily be travel from Dallas, so this should easily be under the $3,000 limit. However, since this is a non -routine contract it is necessary that we take it to the City Council for approval. If you agree with this recommendation, please sign the contract and I will make arrangements for it to be on the agenda for the 14th. If we can make this deadline then it will not require spending and extra month under the 14% increase in benefits costs. Respectfully, dlro/w — Mary Andrews Managing Director of Human Resources cc: Benefits Committee.