Title
Workers’ Compensation Medical Services
Action
Action:
A. Approve a unit discount contract with Concentra Medical Centers for workers’ compensation medical services for an initial term of three years, and
B. Authorize the City Manager to renew the contract for up to two, one-year terms and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Kelly Flannery, Finance
Betty Coulter, Finance
Explanation
§ The city’s Risk Management office coordinates workers’ compensation claims for the city, Mecklenburg County, Charlotte-Mecklenburg Schools, MEDIC, and the Charlotte Regional Visitors Authority.
§ Collectively, these five organizations employ approximately 37,500 individuals, and all workers’ compensation medical services for employees injured on the job are outsourced.
§ Workers’ compensation medical services may include:
- Providing medical direction and leadership as a licensed provider in North Carolina;
- Providing various locations within Mecklenburg County for access to treatment;
- Providing treatment at various levels and within established timeframes;
- Providing limited pharmacy benefit management services;
- Providing referrals as appropriate and necessary;
- Providing fitness-for-duty evaluations; and
- Creating policies and protocols for exposure-related claims.
§ On April 2, 2019, the city issued a Request for Proposals (RFP); two responses were received.
§ Concentra Medical Centers best meets the city’s needs in terms of qualifications, experience, cost, and responsiveness to RFP requirements.
§ The North Carolina Industrial Commission (NCIC) sets maximum pricing levels for medical treatment under workers’ compensation. Concentra Medical Centers offers an 11 percent discount to the maximum pricing established by the NCIC.
§ The city’s annual expenditures are estimated to be $850,000.
§ The cost of these services will be paid by the respective organization for which the services have been performed.
Charlotte Business INClusion
The city negotiates subcontracting participation after the proposal selection process (Part C: Section 2.1(h) of the Charlotte Business INClusion Policy). Concentra Medical Centers has identified MWSBE opportunities in the following scopes of work:
§ Electrical services;
§ Flooring services;
§ Heating, ventilating and air conditioning (HVAC);
§ Janitorial services;
§ Landscaping;
§ Mechanical services;
§ Plumbing;
§ Pressure washing; and
§ Window services (cleaning, repair, installation)
Fiscal Note
Funding: City of Charlotte Risk Management Fund; Mecklenburg County Risk Management Fund; Charlotte-Mecklenburg Schools Risk Management Fund