Title
[Contract Supplement] Workers' Compensation Cost Containment Services
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FileID
File ID: 2026-00928
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute a Supplemental Contract with Allied Managed Care to increase the not-to-exceed (NTE) amount by $300,000 for an additional one year of service for Workers' Compensation Cost Containment Services.
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Contact
Contact: Natalie Dempsey, Risk Manager, (916) 808-8587, ndempsey@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-PSA-Allied Managed Care Supplemental Contract
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Description/Analysis
IssueDetail
Issue Detail: On July 11, 2023, the City executed Contract No. PRC002457 with Allied Managed Care to provide critical Workers' Compensation cost containment services necessary to support the City's self-insured, self-administered Workers' Compensation program. These services include Nurse Case Management, Utilization Review, Peer Review, Medical Bill Review, and Pharmaceutical Benefit Management.
To maintain continuity of these essential services and ensure ongoing compliance with State regulations and to support appropriate and timely medical treatment for injured employees, a Supplemental Agreement is proposed.
The initial contract term was for three (3) years, with provisions for two renewals in one (1) year increments. The total cost for the initial term was $1,400,000. To extend services through June 30, 2027, an additional $300,000 is recommended, increasing the total not-to-exceed amount to $1,700,000.
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PolicyConsiderations
Policy Considerations: Council approval is required to execute agreements for services if the amount to be expended under each such agreement is $250,000 or more. This recommendation is consistent with City Code section 3.56 and in accordance with Procurement Policy Number AP...
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