HomeMy WebLinkAbout20243118.tiffDate of signature:
RESOLUTION
RE: APPROVE AMENDMENT #3 TO PROFESSIONAL SERVICES AGREEMENT FOR
INMATE MEDICAL SERVICES (EMERGENCY BID #B2300144), AND AUTHORIZE
CHAIR TO SIGN - WELLPATH, LLC
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Horne Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with Amendment #3 to the Professional
Services Agreement for Inmate Medical Services between the County of Weld, State of Colorado,
by and through the Board of County Commissioners of Weld County, on behalf of the Sheriff's
Office, and Wellpath, LLC, commencing January 1, 2025, and ending December 31, 2025, with
further terms and conditions being as stated in said amendment, and
WHEREAS, after review, the Board deems it advisable to approve said amendment, a
copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that Amendment #3 to the Professional Services Agreement for Inmate
Medical Services between the County of Weld, State of Colorado, by and through the Board of
County Commissioners of Weld County, on behalf of the Sheriff's Office, and Wellpath, LLC, be,
and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said amendment.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 27th day of November, A.D., 2024.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY.,6OtORPDO.
ATTEST:
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Weld County Clerk to the Board
BY: . /ilJci uY)C-L
Deputy Clerk to the Board
APP' 0 • ED ARM:
ounty Attorneyci-
V2,1 %��•' :j aine
oss. Chair
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Perry L. Buc Pro -Tern
Mike Freeman
K. James
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2024-3118
SO0045
ContkactiD4K638
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW
PASS -AROUND TITLE: 2025 Wellpath Inmate Medical Service Contract amendment #3
DEPARTMENT: Sheriff's Office DATE: 11/08/2024
PERSON REQUESTING: Lieutenant Michael Knee WCSO Detentions and Sonja Kohlgraf, WCSO Finance
Manager
Brief description of the problem/issue:
Amendment #3 to the existing Wellpath contract for inmate medical services, requests an increase of
$589,352.38 for calendar year 2025.
$392,901.38 or 5% based on price consumer index and an additional $196,451.00 or 2.5% to offset the cost of
increased supply expenses, and recruitment and retention of medical staff. The original contract states the
contractor can request an increase of 4.5% to 5% (CPI adjustment) per year. Due to inflation and the difficulty
in recruiting and retaining qualified medical staff, we approve this additional request. We understand the
challenges faced in attracting qualified staff. The Sheriff's Office also understands the unexpected increase in
services/equipment during this turbulent economy.
What options exist for the Board?
The Board of County Commissioners can either accept the CPI increase and additional increase for medical
supplies/equipment or deny both, or the request for the additional funds. The Board can also approve both
requests.
Consequences:
The consequences of not renewing the contract would create a substantial impact to the Detentions Division
and the inmates within our care and custody. This would put the Sheriff's Office in a position where WCSO
would have to find another medical vendor, within a short period of time.
Impacts:
The impact is a total increase of $589,352.38 to the existing medical contract for 2025, $196,451.00 higher
compared to the contractual allowance.
WCSO's budgeted sufficient funds under medical cost for 2025 to cover the 5% and additional 2.5% increase
for 2025.
Costs (Current Fiscal Year / Ongoing or Subsequent Fiscal Years):
The current contracted rate for 2024 is $7,858,028.00, the new rate for 2025 would be $8,447,380.03 (this
includes the additional $392,901.38 economic inflation consumer price index and $196,451.00 stabilizing
nursing staff increase, Wellpath is requesting.
WC Legal Dept has reviewed the contract language.
Recommendation:
I recommend the Board of County Commissioners approve this contract renewal and the request for additional
funds for recruitment of qualified staff, retention of those staff, and supplies/equipment.
2024-3118
tt/Z-1 SO 00'45
Perry L. Buck, Pro-Tem
Mike Freeman
Scott K. James
Kevin D. Ross , Chair
Lori Saine
Support Recommendation Schedule
Place on BOCC Agenda Work Session Other/Comments:
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Docusign Envelope ID: 176800E9-5873-4EB8-BF7F-A46FB4F82C4F
THIRD AMENDMENT BETWEEN
THE WELD COUNTY SHERIFF'S OFFICE
AND WELLPATH LLC
This Third Amendment made and entered into _ day ofIA \If
..t.,MbC.v , 2024 by
and between the Board of Weld County Commissioners, on behalf of the Weld County
Sheriffs Office, hereinafter referred to as the "Department", and Wellpath LLC, hereinafter
referred to as the "Contractor".
WHEREAS, the parties entered into a Professional Service Agreement for Inmate
Medical Services, (the "Original Agreement") identified by the Weld County Clerk to the
Board of County Commissioners as document No. 2023-2252, approved on August 2,
2023.
WHEREAS, the parties hereby agree to amend the term of the Original Agreement
in accordance with the terms of the Original Agreement and any previously adopted
amendment, which is incorporated by reference herein, as well as the terms provided
herein.
NOW THEREFORE, in consideration of the premises, the parties hereto covenant
and agree as follows:
• The Original Agreement was set to end on August 1, 2026.
The Original Agreement was amended on:
• September 6. 2023. to modify Sections 2.1, 2.2, 14.1, and the
Termination, Breach, Cure provision.
The Amendments are identified by the Weld County Clerk to the
Board of County Commissioners as document number 2023-2584.
The Agreement was further amended on:
• April 22, 2024, to increase Medication Assisted Treatment (MAT)
hours from 80 inmates to 150 inmates.
• The Amendments are identified by the Weld County Clerk to the
Board of County Commissioners as document number 2024-0944.
• These Amendments, together with the Original Agreement, constitute the
entire understanding between the parties. The following additional changes
.4a4_3/l8
Docusign Envelope ID: 176800E9-5B73-4EB8-BF7F-A46FB4F82C4F
are hereby made to the current Agreement:
1. Implement a five percent (5%) CPI adjustment;'
2. Implement an additional increase of $196,451 annually/$16,370.92
monthly.2 Thus, the first paragraph of Section 6 of the Original Agreement shall be
revised to read:
6. Compensation and Monthly Invoicing/Payment.3 Upon Contractor's successful
completion of the Work, and County's acceptance of the same, County agrees to pay
Contractor $8,447,380.03' ("Total Annual Price"), and ally amount in excess of CAPS
outlined in attached Exhibits. On a monthly basis, 1/12th of the Total Annual Price is
$703,948.34.
3. All other terms and conditions of the OriginalAgreement remain unchanged.
IN WITNESS WHEREOF, the parties hereto have duly executed the Agreement as of
the day, month, and year first above written.
COUNTY:
ATTEST: I d* " BOARD OF COUNTY COMMISSIONERS
Clerk to the Board 4.°",,� WELD COU ORADO BY: Deputy Clerk to th - `� . .. `, n D. Ross, Chair E`L0 7 2 7 2924
Wellpath LLC
3340 Perimeter Hill Drive
Nashville, TN 37211
By. F6 l (Jaf SDIn-
BBA0FD988B814B4...
Cindy P. Watson, Chief Operations
Officer
DceuSigned by:
' The CPI increase is required to counter the current inflation rate.
2 This additional increase will be used to better stabilize nursing staff and reduce reliance upon agency.
s A detailed summary of the pecuniary changes is attached hereto and incorporated herein as Schedule 1.
°The current annual amount is $7,858,027.65.
otoo2,/-,3// g
Docusign Envelope ID: 176800E9-5B73-4EB8-BF7F-A46FB4F82C4F
SCHEDULE 1
Weld County, CO — Compensation Overview
Current Compensation Total
Economic Inflation — Consumer Price Index
Increase to Stabilize Nursing Staffing
Total Compensation Effective January 1, 2025
Monthly
$654,835.64
$32,741.78
$16,370.92
Annually
$7,858,027.65
$392,901.38
$196,451.00
$703,948.34
$8,447,380.03
• wellpath
To hope and heating.
May 30, 2024
Michael Knee, Lieutenant
Weld County Sheriff's Office
1950 O Street
Greeley, Colorado 80631
RE: Renewal Year 2024-2025 — Agreement for Inmate Medical Services
Greetings Lieutenant Knee:
I hope this letter finds you well. Wellpath is pleased to be your provider for inmate medical services, and
we are excited to move into another year of delivering quality health care at the Weld County Sheriffs
Office.
Contract Renewal
The current term of our Agreement will expire on December 31, 2024, and shall automatically renew for
a one-year period effective January 1, 2025.
During the first eight months of our agreement, the costs associated with attracting and retaining
talented healthcare professionals have risen, and other COST.S continue to rise. This is creating pressure
on correctional healthcare providers, including Wellpath.
As servants of government agencies and taxpayers, we have consciously decided to keep our operating
margin (as a percentage of revenue) in the single digits, so we must plan and account for these rising
costs. Because these cost increases vary significantly by local market, there is no "one size fits all"
approach to addressing the problem. That said, in Weld County, the main factors we have considered in
our requested annual increase are economic inflation (Consumer Price Index) and staffing stabilization
and reduction of nursing agency.
Economic Inflation — Consumer Price Index
In normal circumstances, Wellpath would request an annual increase consistent with what is reported
by the U.S. Bureau of Labor Statistics, Consumer Price Index ("CPI"), All Urban Consumers, for All Items,
no less than 4.5% and no greater than 5.0%, currently 3.4% for April 2024. However, the CPI percentage
does not accurately reflect the extreme economic inflation within the past few years.
Therefore, to maintain the quality and standard of medical services we provide to the patients, it is
necessary for us to adjust the contract amount to account for the pressure caused by economic
inflation. We request is to escalate the contract amount by 5.0% to help curb the current inflation rate
and alleviate overhead costs.
The proposed 5.0% CPI adjustment increases the contract total by $392,901.38 annually or $32,741.78
monthly.
1
Wellpath
1283 Murfreesboro Road. Suite 500 INK LIM
Nashville. TN 37217 mul,'
w w wellpathcare.com
wellpath
To hope and healing.
Staffing Stabilization and Reduction of Agency Nursing
Since the contract's inception, we have struggled to stabilize our nursing staff. To ensure adequate
n ursing coverage, we have been forced to rely on agency nursing to fill the staffing gap. The following
table illustrates the high rates of agency nursing since the start of the contract.
Agency Nursing Usage Per Month
Month of Service
Percentage of
Agency Nursing
SEP
2023
OCT
2023
NOV
2023
DEC
2023
JAN
2024
FEB
2024
MAR
2024
APR
2024
12.0% 17.4% 18.7% 25.5% 26.1% 29.1% 26.2% 17.8'/0
While agency nursing can provide flexible staffing solutions in times of need, it is less preferable than
e mploying permanent nursing staff. Permanent nurses offer greater consistency and continuity of care,
which is essential for building strong patient relationships and understanding the facility's specific
n eeds. They are also more familiar with Wellpath's policies, procedures, and culture, which ensures
smoother operations. Additionally, permanent staff members contribute to a more stable and
committed workforce, reducing turnover rates, and fostering a more cohesive and dedicated healthcare
environment.
Therefore, we must request an additional increase of $196,451 to reduce our reliance on agency
n ursing. This increase will allow us to stabilize our permanent nursing staff by providing more
competitive wages.
Detailed Overview
The following table presents the annualized and monthly costs for the proposed CPI adjustment as well
as the proposed increase to stabilize our nursing staff, effective January 1, 2025:
Weld County, CO - Compensation Overview
Current Compensation Total
Economic Inflation — Consumer Price Index
Increase to Stabilize Nursing Staffing
Total Compensation Effective January 1, 2025
Monthly
$654,835.64
$32,741.78
$16,370.92
$703,948.34
Annually
$7,858,027.65
$392,901.38
$196,451.00
$8,447,380.03
This letter is a proposal only and does not constitute a contract. If the County accepts this proposal,
please email a signed copy of this letter to Joseph Figg, Retention Specialist, at JFigg@wellpath.us.
Upon receiving the signed proposal, our Legal Department will draft a formal contract amendment and
route it to the appropriate County individuals for signature. All other terms of the current Agreement,
including any changes detailed above, shall remain in full force and effect.
We appreciate our relationship over the years and look forward to continued success. Please do not
hesitate to contact Michelle Pounders, Regional Director of Operations, at (501) 253-7164 with any
questions or concerns.
2
Wellpath'Q
1283 Murfreesboro Road. Suite 500
Lillm
Nashville. TN 37217 NEI
www wellpathcare.com
11
wellpath
To hope and healing.
Sincerely,
Kesha Poland
Regional Vice President
Cc: Michelle Pounders, Regional Director of Operations
John Roth, Director of Partner Services
Christi Cunningham, Contract Administrator
The undersigned is authorized to accept the above terms:
Authorized Representative
Kevin D. Ross
Print Name
ATTEST:
By:
Clerk to the Board
N
Deputy Clerk to the ' •ard
p,Ine! 7 202k
Date Signed
Chair, Board of Weld County Commissioners
Title
PLEASE NOTE: Final delivery of the contract amendment will be via email. If hard copies with original
signatures are required, please indicate the number of copies needed:
3
•
Wellpath®
1283 Murfreesboro Road. Suite 500
Nashville, TN 37217 1 i
wvnr� wellpathcare.com
020024*-- it K
Contract Form
Entity Information
Entity Name*
WELLPATH LLC
Entity ID*
@00047461
New Entity?
Contract Name* Contract ID
3RD AMENDMENT TO WELLPATH CONTRACT 2024- 8883
2025 EXTENSION AND YRLY INCREASE
Contract Status
CTB REVIEW
Contract Lead *
MKNEE
Contract Lead Email
mknee@weld.gov;skohlgr
af@weld.gov
Parent Contract ID
Requires Board Approval
YES
Department Project #
Contract Description *
5% INCREASE ON CONTRACT IN GENERAL AND 2.5% FOR NURSING STAFF STABILIZATION; $392,901.38 S%DUE
TO INFLATION; AND $196,451 ADDT COST COVERAGE ON TOP OF THE 5% YRLY INCREASE FOR STAFF
STABILIZATION = ESTIMATED NEED $8,457,207 TOTAL FOR 2025;
Contract Description 2
ESTIMATED COST $8,457,207 FOR 2025
Contract Type*
AMENDMENT
Amount*
$8,457,207.00
Renewable*
YES
Automatic Renewal
Grant
IGA
Department
SHERIFF
Department Email
CM-Sheriff@weld.gov
Department Head Email
CM-Sheriff-
DeptHead@weld.gov
County Attorney
GENERAL COUNTY
ATTORNEY EMAIL
County Attorney Email
CM-
COUNTYATTORNEY@WEL
D.GOV
If this is a renewal enter previous Contract ID
If this is part of a MSA enter MSA Contract ID
Requested BOCC Agenda Due Date
Date* 11/23/2024
11/27/2024
Will a work session with BOCC be required?*
NO
Does Contract require Purchasing Dept. to be
included?
Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts
are not in OnBase
Contract Dates
Effective Date
Termination Notice Period
Contact Information
Contact Info
Review Date*
08/01/2025
Renewal Date*
12/31/2025
Committed Delivery Date Expiration Date
Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2
Purchasing
Purchasing Approver Purchasing Approved Date
Approval Process
Department Head
DONNIE PATCH
DH Approved Date
11/21/2024
Final Approval
BOCC Approved
BOCC Signed Date
BOCC Agenda Date
11/27/2024
Finance Approver
CHERYL PATTELLI
Legal Counsel
BYRON HOWELL
Finance Approved Date Legal Counsel Approved Date
11/21/2024 11/21/2024
Tyler Ref*
AG 112724
Originator
SKOHLGRAF
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