Report Prepared by: Maggie Fuentes, Human Resources Technician III, Human Resources
Title
SUBJECT: Approval of a Two-Year Agreement for Medical Service Programs with Merced Faculty Associates Medical Group, Inc. - Olivewood Meadows Occupational Health Center to Provide Occupational and Pre-Employment Medical Services
REPORT IN BRIEF
Consider approving the bid proposal submitted by Merced Faculty Associates Medical Group, Inc. - Olivewood Meadows Occupational Health Center to provide occupational and pre-employment medical services.
RECOMMENDATION
City Council - Adopt a motion approving an agreement for medical service programs to Merced Faculty Associates Medical Group, Inc. - Olivewood Meadows Occupational Health Center for a 2-year term and authorizing the City Manager or the Deputy City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Direct staff to develop other options; or,
3. Deny; or,
4. Take no action.
AUTHORITY
Charter of the City of Merced, Article XI, Fiscal Administration.
CITY COUNCIL PRIORITIES
As provided for in the 2021-22 Adopted Budget
DISCUSSION
On May 21, 2021, a Request for Proposal (RFP) was mailed to five medical providers who previously expressed interest in providing medical services to the City of Merced. In response to the RFP two bid proposals were received by the stated deadline of 4:00 p.m. on June 21, 2021: Merced Faculty Associates Medical Group, Inc. - Olivewood Meadows Occupational Health Center and The Noble Group -Patients First Medical Center and Urgent Care. The two bid proposals were comparable in pricing as well as the services offered. The proposals are not attached to this report but if needed they will be available for Council review at the meeting.
The RFP specifically invited the submission of a proposal to the City of Merced for all levels of service; or, for individual levels of service. The provision of medical services included: mandatory physical examinations, primary treating physician services in support of the self-insured workers' compensation program, mandatory alcohol and drug testing program for commercial drivers, and pre-employment testing for public safety applicants.
Currently, the City pays all workers' compensation billings based on the Relative Value Medical Fee Schedule to which both bidders adhere. It should be noted that the largest expenditures are in the workers' compensation area.
Following internal review of the proposals, it is the recommendation of this office to award the contract for medical service programs to Merced Faculty Associates Medical Group, Inc. - Olivewood Meadows Occupational Health Center. Olivewood Meadows is a professional medical company in operation in Merced at 374 W. Olive Ave. Suite and have been in operation for quite some time. Olivewood Meadows is a clinic dedicated to treating occupational medical needs only. Before and after hour care will be referred to the emergency room at Mercy Medical Center Merced. Staff believes the proven stability and extensive knowledge of the team at Olivewood Meadows plus the ability of a one-stop-shop for injured workers will reduce the employees' office wait time and will assist in controlling the cost and treatment of medical care.
IMPACT ON CITY RESOURCES
On average the City annually pays $65,000 to $75,000 for non-workers’ compensation medical services. These services include pre-employment physicals, pre-employment drug screens, DOT random testing for required DOT drivers in Public Works, and annual physicals for the Fire Department. On average the City annually pays $55,000 to $65,000 for workers’ compensation primary treating physician services. No appropriation of funds is needed because funding is available within the adopted FY 2021/22 Budget.
ATTACHMENTS
1. Agreement