TITLE
Title
CONTRACTS WITH WELLPATH, LLC FOR HEALTHCARE SERVICES AT THE GUILFORD COUNTY JAILS AND JUVENILE DETENTION FACILITIES
end
SPONSOR
Sponsor
Sheriff Danny H. Rogers; Doug Logan, Juvenile Detention
end
BACKGROUND
Background
Staff executed a Request for Proposal (RFP) this year for the medical services contract for the adult and juvenile detention facilities. Though a few providers initially expressed interest in the RFP, Wellpath, LLC, the current medical provider, was the only formal proposal received.
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.
Wellpath’s initial proposal was a substantial increase in price, based in part on an exceptionally high Medical Services Consumer Price Index of 5.3% (more recently 5.8%), a very competitive labor market for qualified nurses, and increased necessary services requested by the RFP. In response to the substantial price increase, staff have revised the necessary services requested and Wellpath has reduced its pricing structure such that the total proposed increase, for both juvenile and adult facilities, is 13%.
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.
Therefore, application of the 13% increase revises the current monthly compensation for Law Enforcement from $350,226.48 to $395,373.17 ($4,744,478 annually) and for Juvenile Detention from $13,510.97 to $18,273.50 ($219,282 annually) effective July 1, 2020 through June 30, 2023 for professional healthcare services being rendered at the Guilford County Jails and Juvenile Detention Center.
Law Enforcement $4,744,478.00
Juvenile Detention $219,282.00
ANNUAL TOTAL $4,963,760.00
This total amount includes a budgeted amount of $575,000 (the same amount included in the last renewal with Wellpath) for the adult and juvenile 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 THE ADOPTION OF THE FY 2020-21 BUDGET
end
REQUESTED ACTION
Requested Action
Approve three (3) year term contracts, in substantial form, with Wellpath, LLC effective July 1, 2020 through June 30, 2023, with the option for two (2) one-year renewals with increases for each renewal to be based upon the then current medical services CPI, to continue health services for detainees at the Guilford County Jails ($4,744,478 annually) and Juvenile Detention facility ($219,282 annually) in the combined amount of $4,963,760. Authorize staff to take all necessary steps to negotiate and enter into these agreements with Wellpath, LLC.
end