TITLE
Title
CONTRACT WITH WELLPATH, LLC FOR HEALTHCARE SERVICES AT THE GUILFORD COUNTY DETENTION FACILITIES
end
SPONSOR
Sponsor
Sheriff Danny H. Rogers (Captain Wes Mecham)
end
BACKGROUND
Background
Staff executed a Request for Proposal (RFP) this year for the medical services contract for the adult detention facilities. There was a total of four (4) bidders. Wellpath, LLC, the current medical provider, was the lowest bidder. The next nearest bidder in pricing was $271,901 greater than Wellpath for first year costs and $423,695 greater over the course of three (3) years.
Wellpath, LLC provides comprehensive medical services to detainees housed in Guilford County Detention Facilities. Medical services provided by Wellpath include intake screening, history and physical exams, dental services, routine sick call and examination, emergency medical treatment, prescription medication and pharmacy services, mental health care, and bill processing and payment for necessary medical care provided by third-party medical care providers, such as emergency room care and transportation.
Wellpath’s proposal by year:
• Year 1 = $10,742,852 (includes aggregate cap of $575,000)
• Year 2 = $11,200,405 (includes aggregate cap of $575,000)
• Year 3 = $11,678,548 (includes aggregate cap of $575,000)
Total amount for three (3) year period = $33,621,805
The first-year cost increase is $2,368,829, or 28%, over the previous fiscal year. The total exposure of the prior contract was $14,233,434. The most recent contract extension from FY23-FY24 saw the annual maximum exposure increase to $8,374,022. There is an additional cost/refund per inmate of $1.14 when the average daily population varies above/below 950.
The dollars increased by the CPI adjustment and the competitive nurses labor market are critical to the continued success of our program at Guilford County, as they will be applied to the following cost components that continue to rise:
• Cost of Living Adjustments. This allows them to retain their valued staff by offering competitive salaries and benefits that are in line with the current healthcare market, ensuring their current recruiting and retention efforts are successful.
• Guilford County is experiencing the same trend being seen in jails throughout the United States: a growing population of arrestees with health issues, often exacerbated by substance abuse and/or serious mental illness, and whose health needs have not been managed appropriately outside the detention walls. Thus, further drivers of expenses include increased utilization of on-site diagnostic services and laboratory testing identifying these health issues.
• Recently, the correctional healthcare industry as a whole has seen a rise in insurance premiums. On a national level, we have seen patients being admitted to local detention facilities with far greater health needs. As the acuity level continues to rise across the industry, we anticipate a continued upward trend in this expense.
This annual costs include a budgeted amount of $575,000 (the same amount included in the last renewal with Wellpath) for the facilities for necessary medical care provided by third party providers, such as hospital emergency care services. The contract obligates Wellpath to utilize its discounted rates with local medical care providers on behalf of detainees who require third party medical care, verify that the third-party medical care billing is correct, and process and pay these bills on behalf of the County. Wellpath does not further mark up the third-party medical providers’ bills in exchange for these services - the bills flow through Wellpath at the providers costs.
end
BUDGET IMPACT
Budget Impact
FUNDS COMMENSURATE WITH ADOPTION OF THE FY 2024-25 ANNUAL BUDGET
end
REQUESTED ACTION
Requested Action
Approve a contract, in substantial form, with Wellpath, LLC in the amount of $33,621,805 for a three (3) year term effective July 1, 2024 through June 30, 2027, with the option for two (2) one-year renewals, and authorize staff to take all necessary steps to enter into this agreement. Increases for each renewal will be based upon the then current medical services CPI, in order to continue health services for detainees in Guilford County Detention Centers.
end