Report to Mayor and City Council
Tuesday, February 07, 2017
Discussion
SUBJECT:
Title
CONSIDER AN AWARD OF CONTRACT FOR A MEDICAL SERVICES PROVIDER FOR PRE-EMPLOYMENT EXAMINATIONS AND WORK RELATED INJURIES AND ILLNESSES (CITY COUNCIL)
Body
I. SUMMARY
A Request for Proposal, RFP No. P16-06 (Exhibit No. 1), was released on October 26, 2016 for a medical services provider for work related injuries, illnesses and pre-employment examinations. The City’s current contract for a work-related medical services provider expires on February 28, 2017. In response to the RFP, staff received two (2) proposals. After careful analysis and evaluation of the proposals, staff is recommending the City Council award a three-year contract to U.S. Healthworks Medical Group, to commence on March 1, 2017.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD a three-year contract for a work-related medical services provider in an amount not to exceed $75,000.00, to U.S. Healthworks Medical Group for the period of March 1, 2017 through February 29, 2020 with two one-year extension options.
2. AUTHORIZE the Mayor to execute the contract, following approval as to form by the City Attorney.
Body
III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.
IV. BACKGROUND
The City contracts with a medical facility to provide pre-employment physicals, drug screenings, fitness-for-duty examinations and treatment for employees for workers’ compensation injuries. The current contract expires February 28, 2017.
Staff released an RFP for a medical services provider on October 26, 2016, and received two acceptable and responsive proposals. Attached are cost proposals from U.S. Healthworks Medical Group (multiple locations) and Western Medical Group (Torrance). The cost proposals (Exhibit No. 2) are based upon individual patient visits for medical services required by the City.
The cost of this contract is for pre-employment physicals for new hires only as workers’ compensation medical expenses are paid through a separate contract with our third party administrator, Adminsure.
The criteria used to review the proposals included experience providing the requested medical services, quality and number of facilities, competent medical staff and philosophy on modified duty and return-to-work programs. Also considered were patient wait times, safeguards to ensure patient confidentiality is maintained and submission of timely results of examinations. Interviews and site visits were conducted in the review process. Based upon the results of the evaluation process, staff is recommending the City Council award a three-year contract to U.S. Healthworks Medical Group (with two one-year extension options).
Although there will be an increase in cost for services, staff believes that U.S. Healthworks is best suited to meet the City’s medical service needs due to its staffing, equipment, multiple locations and state-of the-art software.
V. FISCAL IMPACT
Funds for this service were included in the FY 2016/17 general fund budget in account numbers 01-21-999-043-6037 and 01-20-580-003-6005.
VI. EXHIBITS
1. Request for Proposal No. P16-06 (Exhibit 1) (pg. 3-15)
2. Costing Breakdowns (Exhibit 2) (pg. 16-20)
3. Sample Contract (Exhibit 3) (pg. 21-51)
Prepared by: Tracey Curry, Senior Human Resources Analyst