COMPREHENSIVE WORKERS COMPENSATION MANAGED CARE ARRANGEMENT
.1
I
AGREEMENT
Between
CITY OF CLEARWATER
And
CORVEL CORPORATION
This document represents an agreement between the City of Clearwater, hereinafter referred to as
"CITY", and CorVel Corporation, hereinafter referred to as "CORVEL".
The purpose of this agreement is to establish a business relationship between the parties hereto
for the purpose of developing and implementing a comprehensive workers' compensation
managed care arrangement (MCA) for the CITY in the State of Florida, with regard to the
servicing of CITY'S injured employees whose claims are self-administered by the CITY in
compliance with Chapter 440, Florida Statutes (Florida Workers' Compensation Law).
In consideration of the premises hereof, and the mutual promises and agreements made herein,
the parties hereto, intending to be legally bound, hereby agree to the provisions set forth in this
agreement and in the CITY'S Managed Care Arrangement which include, but are not limited to
the following:
OBLIGATIONS OF CORVEL:
1) CORVEL will develop and maintain, through credentialing and re-credentialing of:
medical providers, the operations of a M CA Preferred Provider Network (CorCare) in
the service area consisting of Pinellas, Hillsborough, and Pasco Counties which
include primary care physicians and other medical specialist, and other health care
providers satisfactory to CITY, to include hospitals, clinics, and ancillary health care
servIces.
2) CORVEL will implement and maintain utilization management programs and services as
defined in the MCA.
3) CORVEL will assist, through communication with CITY'S workers' compensation
adjuster(s), the CITY'S injured employees with grievance procedures as defined in
the MCA.
(J{!:~
1
I
I
4) CORVEL will develop and maintain the CorCare Network Quality Assurance
program and provide case management services as defined in the MCA.
5) CORVEL will assist CITY with MCA educational seminars.
6) CORVEL will assist CITY with preparation of its MCA and file the same with
Florida's Agency For Health Care Administration (AHCA) along with semi-annual
updated provider lists as provided by Florida law.
7) CORVEL will invoice CITY monthly for use of its medical care network and its
managed care services in accordance with the pricing schedule set forth in
paragraph 19 hereof.
8) CORVEL will provide sample education materials for CITY and will assist CITY
with proper distribution of such materials.
9) CORVEL will provide directory updates to CITY for appropriate channeling into
the CorCare Network.
10) CORVEL will provide reports to CITY monthly substantiating cost savings through
the CITY'S MCA.
11) CORVEL will work with CITY workers' compensation adjusters to:
a) Notify employees of the necessity of using the MCA;
b) Direct employees to CorCare providers;
c) Assist employees with return to work opportunities.
OBLIGATIONS OF CITY:
12) CITY will refer all inpatient and outpatient invoices, except pharmacy invoices to CORVEL
for all workers' compensation cases regardless of date of accident. COR VEL will then
review each invoice submitted, reduce to fee schedule, apply all PPO discounts, and return
the invoice to CITY in adequate time for CITY to pay each invoice within the time allotted
for payment of invoices pursuant to Florida Workers' Compensation Law. Hospital invoices
shall be audited by CORVEL only if requested by CITY.
2
I
I
13) CITY shall pay CORVEL for services rendered within thirty (30) days of the date of
receipt by CITY of an invoice from CORVEL.
MISCELLANEOUS PROVISIONS:
14) The term of this agreement is for a period of one (1) year from its effective date. This
agreement may be renewed for two (2) additional one (1) year periods on the same terms and
condition if mutually agreed to by the parties hereto. Notice of intent to renew will be given
by each party within sixty (60) days of the expiration date.
15) The terms of paragraph 14 hereof to the contrary notwithstanding, this agreement can be
terminated by either party with or without cause upon thirty (30) days written notice
submitted at any time. It is the expressed intent of the parties that the business relationship
between the parties hereto shall last only so long as the parties are mutually satisfied with the
business relationship existing between the parties.
16) CORVEL, will, at its own expense, maintain, at all times during the term of the
agreement, the required professional liability, errors and omissions, workers'
compensation, general and auto liability insurance coverages as set forth on Exhibit
A attached hereto and made a part hereof.
17) This contract is expressly conditioned upon CORVEL adding to either its provider network
or to CITY'S MCA those medical providers desired by CITY - particularly Morton Plant
Hospital and its affiliated Mease hospitals.
18) CORVEL shall be responsible for the recommendations, acts or omissions of any of
its employees, agents, representatives, or independent contractors in connection
with the provision of its managed care services as described in its marketing
brochures and/or service proposals or RFP response as provided to CITY, and shall
indemnify, defend, and hold harmless CITY, its agents, representatives, elected
officials, and employees, from any claims, actions, suits, proceedings, costs,
expenses, damages, injuries, and liabilities, including attorney's fees, arising from its
recommendations, acts or omissions. The above stated rights to indemnification shall
not apply (a) to any case where CITY, its agents, representatives, or employees in any
way modify or disregard CORVEL'S recommendations or fail to implement them in
a timely manner or (b) to the extent the cause of action or liability arises from the
negligent acts or omissions or willful misconduct of CITY, its employees, agents,
employees, elected officials, or representatives.
3
I
I
19) The parties hereby agree to CORVEL'S prices for its managed care services to CITY
as follows:
a) Standard fees are $1.25 per line (line means CPT code) with a two (2) line
minimum for review of invoices for medical services covered by the State of
Florida's workers' compensation fee schedule;
b) Standard fees are $1.40 per line with a two (2) line minimum for review of
invoices for medical services not covered by the State of Florida's workers'
compensation fee schedule;
c) A fee of $68.00 per hour for telephonic and field case management of cases that
are specifically referred to CORVEL by CITY;
d) If CITY uses, which it is not required to use, CorCare RX Pharmacy program
CORVEL shall receive 30% of any savings, with no charge to be made if no
savmgs occurs.
e) CORVEL shall receive 30% of any savings generated from its PPO re-pricing
based on medical provider discounts that CORVEL has negotiated into its
managed care network.
f) Based on the anticipated usage of COR VEL'S Managed Care Network by City
and the level of expenditures for workers' compensation medical benefits paid by
the City in the past two years, together with the PPO savings to inure to the City
by virtue of City's use of the CORVEL Managed Care Network, the parties
anticipate a net expenditure annually by CITY ofless than $25,000.
20) The effective date of this agreement will be January 1, 1997, but ifthe City Attorney
of Clearwater determines that this agreement needs to be ratified and confirmed by
the Clearwater City Commission, then this agreement will be voidable by CITY
until such time as the agreement is ratified and confirmed by the Clearwater City
Commission.
CORVEL CORPORATION,
a, Delaware Corporation
CITY OF CLEARWATER,
a Florida Municipal Corporation
By
r;-~~ ~
~ty Mager
f//r.'/~7
f
Date:
4
I
I
"
EXHIBIT A
to
Agreement
Between
CITY OF CLEARWATER
And
CORVEL
Dated
December, 1996
INSURANCE REQUIREMENTS
1. Insurance. CORVEL shall furnish, pay for, and maintain during the life of the contract with
the City the insurance coverages shown below:
a. General Liability insurance on an "occurrence" basis in an amount not less than
$500,000 combined single limit Bodily Injury Liability and Property Damage
Liability.
b. Business Auto Liability insurance on an "occurrence" basis in an amount not less
than $500,000, for liability arising out of operation, maintenance or use of any auto,
including owned, non-owned and hired automobiles and employee non-ownership
use.
c. Worker's Compensation Insurance applicable to its employees, if any, for statutory
coverage limits in compliance with Florida laws.
d. Professional Liability/Malpractice/Errors or Omissions Insurance with minimum
limits of$l,OOO,OOO per occurrence.
2. Additional Insured. The City is to be specifically included as an additional insured on all
liability coverage described above.
3. Notice of Cancellation or Restriction. All policies of insurance must be endorsed to provide
the City with thirty (30) day's notice of cancellation or restriction.
4. Certificates oflnsurance/Certified Copies of Policies. CORVEL shall provide the City with
a certificate or certificates of insurance showing the existence of the coverages required by its
contract with the CITY. CORVEL will maintain these coverages with a current certificate or
certificates of insurance throughout the term stated in the proposal.
When specifically requested by City in writing, the Vendor will provide City with certified
copies of all policies of insurance as required above. New certificates and new certified
copies of policies, if certified copies of policies have been requested, shall be provided City
whenever any policy is renewed, revised, or obtained from other insurers.
1
I
I
!" ,.."
5. The address where such certificates and certified polices shall be sent or delivered is as
follows:
City of Clearwater
Attention: Risk Management
P.O. Box 4748
Clearwater, FL 34618-4748
2
~ j~@ttttt}~I~;~~~~m~~~~~;r:~~m1~~~~*~f:f:*~~~;1~tm;~~~~~m~m~~~~t*~r~~:" . '.
Marsh , McLennan, Incorporated
500 W. Monroe
chicaqo, IL 60661
~~
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN
THE POLICY. THIS CERTIFICATE OOES NOT AMEND, EXTEND OR AL TEA THE
COVERAGE AFFORDED BY THE POLICIES LISTED HEREIN.
COWPAI'lf
lETTER
COMPANIES AFFORDING COVERAGE
A COLUMBIA CASUALTY CO
Barbara Covell
INSURED
CorVel Corporation
1920 Main Street
suite 1090
Irvine, CA 92714
COWPAI'lf
lETTER
B
COMPAI'lf
LETTER
C
COMPAI'lf
lETTER
D
;.:.;:;.2~.'elm:l;:::::~:::lI:::::::::::::::l:::::I::::::I:III::::::l:l:::::II:1IlIIIlI::II:1:::Il:MMI:11::;l.1lII::::~:~:lI:~:I:IiI:::II::::::::I:::::::::~::::I::~:I;:;:;II:;~;:;IIIII:::::::::;:I:::::::::~;:;::~;~:::III::~::I:;:::::::::::::::::::::::~::::::::~::::;:;:~~:::III1II::i::::::::::::I:::~::~::~::I:::::~::;f::::::
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANl.'E AFFORDED 6'( THE ?OUCI!:S L!STED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS
OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
. PClUCY EFFECTNE PClUCY EXPIRATlCI\I
PClUCY NUMBER DAlE (JIMfDDfYY) DAlE
co
LTR
TVPE OF IlSURANCE
LMTS
GENERAL UABaITY
COMMERCIAL GENERAL UABIUTY
DaAlMS MAOEDoccUR.
OWNER'S CONTRACTOR'S PROTo
AUlllMOIlU UABlLTY
AI'lf AUTO
AU. OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON-OWNED AUTOS
GENERAL AGGREGATE $
PRODUCTS-COMP lOP AGG $
PERSONAL & ADV INJURY $
EACH OCCURRENCE $
FIRE DAMAGE (Any one fire) $
MED. EXPENSE (Any one person) $
I~ ~~ COMBINED SINGlE UMIT $
BODILY INJURY (Per person) $
BODILY INJURY (Per accident) $
-, 19~
I PROPERTY DAMAGE $
GARAGE UABWTY
AI'lf AUTO
ANAG MENT
AUTO ONLY - EA ACCIDENT
$
OTHER THAN AUTO ONLY
EACH ACCIDENT
$
$
$
$
EXCESS UABIJTY
AGGREGATE
EACH OCCURRENCE
AGGREGATE
UM~HEi.1A i'UHM
OTHER THAN UMBR8.LA FORM
WORKERS' COMPENSATlCI\I AND
EMPLOYERS UABIJTY
STATUTORY UMrTS
EACH ACCIDENT
DISEASE - POLICY UMrT
DISEASE - EACH EMPLOYEE
$
$
$
OTHER
PROF LIAB -OTH PMC 1023817904 10L31/96 10/31/97 RETRO-DATE: 10/31/88
LIMITS OF LIABILI Y: $5,000,000 EACH CLAIM; $ f,000,000 AGG.;
DEDUCTIBLE: 10 0 0 EACH CLAIM. CLAI S-MADE ICY.
DESCRIPTION OF OPERATIONS/lOCATIONS/llEHIO.ES/SPECIAlITEMS
city of Clearwater is Additional Insured with respect their interest.
CERTIFICATE HOLDER
City of Clearwater
100 S. Myrtle Ave.
Clearwater, FL 34616
CANCELlATION
SHOULD ANY OF THE POLICIES LISTED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE
THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN
NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE TO MAIL SUCH NOTICE
SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER AFFORDING
COVERAGE, ITS AGENTS OR REPRESENTATIVES. OR THE ISSUER OF THIS CERTIFICATE.
MARSH & Ma.ENNAN, INCORPORATED
BY:
II
MMl1 (8/tS)
VAUD AS OF:
1/02 97
PAGE:
1 OF
1
t 41581
PRODUCER
Marsh , McLennan, Incorporated
500 W. Monroe
chicaqo, IL 60661
Barbara Covell
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN
THE POLICY, THIS CERTIFICATE OOES NOT AMEND, EXTEND OR ALTEA THE
COVERAGE AFFORDED BY THE POLICIES LISTED HEREIN.
COMPAI'lf
lETTER
COMPANIES AFFORDING COVERAGE
A COLOMBIA CASUALTY CO
"SURED
CorVel corporation
1920 Main street
suite 1090
Irvine, CA 92714
COMPAI'lf
lETTER
B
COMPAI'lf
lETTER
C
COMPAI'lf
lETTER
D
;,:,;:;,}!e.eHi.~::~II::::::::::::!:::::::::!:::::::l::::::::::::::::::::!:::::::!::::::::i.:::~:!::i.:::~~::::::~i.M:::::::::~i.:l::@~~:::::::::M:I::~::::l:H::::::::i.:::::I:UH:::::::I~:::::::::':::::::~::~~~~ml:!:::I::::~~::::::::::::::::::!::::::::::~:'::r:::::::::':::::::~:::::II::::::t::~:::I::::t~:~:::::::::::::::':'~::::t::':'::::::::':':::::':::':':'::!:!::::!:::':'!::':::::::::~::~:rr:::::~:::::I:::::l:::t:::::!:::::f:':::':"':':,:,:
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT, TEAM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED 6Y THE roUCI!:S L!STED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS
OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
. N POUCY IEFFECTI\IE
TYPE OF "SURANCE POUCY UMBER DAlE ,./DD/YYl
GENERAL UABIJTY
COMMERCIAL GENERAL UABIUTY
o a.AIMS MADEDoocuR.
OWNER'S CONTRACTOR'S PROT.
LNTS
co
LTR
GENERAL AGGREGATE $
PRODUCTS-COMP lOP AGG $
PERSONAL & ADV INJURY $
EACH OCCURRENCE $
FIRE DAMAGE (Any one fire) $
MED. EXPENSE (Any one person) $
AUTOMOBLE UABlLTY
AI'lf AUTO
ALL OWNED AUTOS
SCHEDUlED AUTOS
HIRED AUTOS
NON-OWNED AUTOS
GARAGE UA8RJTY
AI'lf AUTO
~
~~
COMBINED SINGLE UMIT $
BODILY INJURY (Per person) $
BODILY INJURY (Per accident) $
.' 19~
PROPERTY DAMAGE
$
EXCESS UA8RJTY
ANAG MENT AUTO ONLY. EA ACCIDENT $
OTHER THAN AUTO ONLY
EACH ACCIDENT $
AGGREGATE $
EACH OCCURRENCE $
AGGREGATE $
lJMt.ltiEUi\ FUHM
OTHER THAN UMBR8lA FORM
WORKERS' COMPENSATION AND
EMPLOYERS UABIJTY
STATUTORY UMITS
EACH ACCIDENT
DISEASE. POUCY UMIT
DISEASE - EACH EMPlOYEE
$
$
$
OTHER
PROF LIAB -OTH
LIMITS OF LIABILI
10/31/88
Insured with respect their interest.
City of Clearwater
100 S. Myrtle Ave.
Clearwater, FL 34616
CANCELlATION
SHOULD ANY OF THE POLICIES LISTED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE
THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN
NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE TO MAIL SUCH NOTICE
SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER AFFORDING
COVERAGE, ITS AGENTS OR REPRESENTATIVES, OR THE ISSUER OF THIS CERTIFICATE.
MARSH & Ma.ENNAN, INCORPORATED
BY:
CERTIRCATE HOLDER
MM 1 (B/95)
PAGE:
1 OF
1