Title
Public Health Department recommending Chairman be authorized to sign Amendment I to agreement 588-PHD0407 with California Forensic Medical Group, Inc., increasing compensation amount by $20,000 annually (prorated to $3,333 for FY 2007-08) to compensate contractor for increasing contractor's hospital financial liability limit from $15,000 to $20,000 per inmate/ward per episode beginning May 1, 2008.
RECOMMENDED ACTION: Approve.
FUNDING: General Fund.
Body
BUDGET SUMMARY:
Total Estimated Cost $2,038,534.05
Funding
Budgeted $2,035,200.72
New Funding $
Savings $3,333.33
Other $
Total Funding Available $2,038,534.05
Change To Net County Cost $0
Fiscal Impact/Change to Net County Cost: $0 - for FY 2007-08 no change to General Fund contribution required due to offset from savings experienced from insurance policy renewal. For subsequent years, amount is subject to medical CPI-u and is variable.
Background: California Forensic Medical Group, Inc., (CFMG) provides medical services in the Jail and Juvenile Hall settings. The current agreement provides that Contractor has a financial liability for the first $15,000 per Inmate/Ward hospitalization. This $15,000 limit matched the $15,000 deductible in the Catastrophic Medical Insurance policy for each Inmate/Ward hospitalization. Effective March 15, 2008, the Catastrophic Medical insurance policy term expired and the lowest deductible available for the continued policy was $20,000 per Inmate/Ward hospitalization.
The Contractor has agreed to increase their financial liability for each Inmate/Ward hospitalization to $20,000; however, in consideration for accepting this increased limit, Contractor will increase the annual base rate by $20,000. Staff have reviewed historical data which supported Contractor's requested increase. For FY 2007-08 this amount is prorated to the remaining two months of the year, for a total of $3,3...
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