NOTICE OF INTENT TO RENEW AGREEMENT AND RENEWAL THEREOF TERM FROM 01-01-98 TO 12/31/98
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NOTICE OF INTENT TO RENEW AGREEMENT
AND RENEWAL THEREOF
THE UNDERSIGNED corporations hereby give notice of their intention to renew, and by this
document do renew, for a new one (1) year term, that certain Agreement between the CITY OF
CLEARWATER and CORVEL CORPORATION which became effective January 1, 1997,
relating to the development ofa Workers' Compensation "Managed Care Arrangement" (MCA)
and the delivery of Workers' Compensation Managed Care Medical Services by CORVEL
CORPORATION to the CITY OF CLEARWATER, a copy of said agreement being attached
hereto as Exhibit A. The renewed term of one year, which shall be evidenced by this document
when this document is dilly executed, shall be on the same terms and conditions as the current
term and said term shall run from January 1, 1998, through, and including, the last day of
December, 1998.
CITY OF CLEARWATER,
a Florida Municipal Corporation
By ~
Michael Roberto
City Mana~r
Date: 10 27/97
CORVEL CORPORATION,
a Delaware Corporation
BY~~
Its Duly AuthTed Represeut -ive
Date: /O/s 7
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Document Prepared by:
Leo W. Schrader, Attorney
Risk Manager
City of Clearwater
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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 (ARC A) 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) COR VEL will provide sample education materials for CITY and will assist CITY
with proper distribution of such materials.
9) COR VEL will provide directory updates to CITY for appropriate channeling into
the CorCare Network.
10) COR VEL 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. CORVEL 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.
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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 tenn 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 hannless 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.
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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, COI'Care 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 of less than $25,000.
20) The effective date of this agreement will be January 1, 1997, but if the City Attorney
of Clearwater determines that this agr,~ement 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 0i.flL4A. >-rz~
Its Legally u orized Representative
Date: /2- 31 q"
By g~z:
Date: f' //o/f 7
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EXHIBIT A
to
Agreement
Between
CITY OF CLEAR WATER
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 $1 ,000,000 per occurrence.
2. Additional Insured. The City is to be specifically included as an additional insured on all
liability coverage described above.
3. Notice c f Can.ceilation or Re~1riction. All policies of insurance must be endorsed to provide
the City with thirty (30) day's notice of cancellation or restriction.
4. Certificates of Insurance/Certified Conies 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.
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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
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