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August 26, 2021 City Council Regular Meeting
Title
17. Authorize the City Manager to Execute a Contract for Medical Care Coordination Services for the City's Healthcare Program from Quantum Health in the Amount of $490,000. This will Provide a Single Point of Contact for Employees, Pre-65 Retirees, and Dependents for Precertification of Medical Care, Patient Advocacy and Education, Physician Coordination, Data Reporting, and Analysis, etc.
Strategic Priority
Good Government
Description

Recommend approval to award an annual contract for Medical Care Coordination Services to Quantum Health in the amount of $490,000.

The purpose of this contract is to provide single-source coordination of the healthcare program to the City of Savannah employees, pre-65 retirees, and dependents that incentivizes proper healthcare processes and precertification of medical care, patient advocacy and education, physician coordination, data reporting, and analysis, as well as other value-added services. The vendor for the contract will specialize in serving the employees early in the healthcare navigation and care coordination journey. These services help to increase member engagement which improves proper utilization of healthcare and ultimately helps identify and eliminate unnecessary healthcare utilization costs.
 

USI Insurance Brokerage performed a Request for Proposal (RFP) for the services currently provided by Quantum Health. The RFP was sent to four companies: Quantum Health, Accolade, Grand Rounds, and Rightway. These companies are the current leaders in the market space.  USI recently performed a national RFI and all four vendors were highly rated by our national Population Health Management team.
Vendors were evaluated based on the following criteria: 

1.             Navigation/clinical guidance and special services
2.             Clinical programs/expertise
3.             Technology and client services
4.             Experience, references, and overall response
5.             Cost effectiveness of proposal

After a thorough evaluation, Quantum Health and Accolade emerged as the top finalists. Accolade and Quantum Health gave finalist presentations on June 15 and 23, respectively. The recommended vendor for the RFP is Quantum Health. The annual cost for these services is approximately $490,000 in the first year. The fees are based on the number of employees, retirees, and dependents enrolled in the medical plan. This contract will begin on January 1, 2022.

Benefit                                      Quantum Health                                                     Accolade
PEPM Fee                          Year 1         Year 2     Year 3                                 Year 1         Year 2     Year 3
                                             490k          504k      522k                                    530k           578k            620k
Annualized Fee                            $1,571,000                                                              $1,727,000
(3 Year Total)

B.P.  Quantum Health (Dublin, OH)(D)                          $490,000

D) Indicates non-local, non-DBE business. Recommend approval.

Local available: No

Total sent: 4

Total received: 4

Vendor federally debarred/suspended: No

Recommendation

Approval

Contact
Jeff Grant, Director, Human Resources
Financial Impact
Expenditure of $490,000 from Risk Management fund
Review Comments
Attachments
Exhibit 1: Funding Verification - Medical Care Coordinator
Exhibit 2: Purchasing Notes.pdf
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