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HomeMy WebLinkAbout90-1226 Syncor Administrative Services Inc. - Insurance RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH SYNCOR ADMINISTRATIVE SERVICES, INC BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Larry L. Rice, City Manager, be and is hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Syncor Administrative Services, Inc. for the preferred provider organization plan, a copy of which is attached hereto and made a part hereof by reference. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: December 26, 1990 Adopted: December 26, 1990 Vote: Yeas 5 Nays 0 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk SYNCOR ADMINISTRATIVE SERVICES EMPLOYER AGREEMENT THIS AGREEMENT Is entered into by and between G/T/ C f F/, G-/A/ an Illinois Corporation (hereinafter referred to as the 'EMPLOYER') and Syncor Administrative Services, an Illinois Corporation (hereinafter referred to as 'Q- CARE/SYNCOR'). In consideration of the mutual covenants hereinafter set forth, It is agreed by and between the parties as follows: 1. Q-CARE/SYNCOR agrees: • • a. To provide access to ail eligible employees enrolled by Q- CARE/SYNCOR under the plan 'Preferred Plan/Q-CARE' network of participating hospitals and physicians. b. To provide printed material for distribution to all employees. c. To arrange for such employee instructional sessions as from time to time may be agreed upon between EMPLOYER and the Q-CARE/ SYNCOR PLAN. d. That participating hospital and physician discounts contracted for by Q-CARE/SYNCOR PLAN will Inure to the benefit of the employer and/or the employees in accordance with an appropriate formula selected by the EMPLOYER. 2. EMPLOYER hereby agrees to provide the following: a. Communicate the particulars of the PPO to the employees and dependents. b. Arrange for the benefit plan administrator to accommodate the PPO. c. Pay a fee to Q-CARE/SYNCOR equal to twenty-five percent (25%) of the savings generated through the participating employee use of the PPO hospitals, clinics and physicians. Employees, for the purposes of this paragraph are defined as any employee enrolled for benefit coverage In the Q-CARE/SYNCOR Benefit Plan. d. Not to create Its own PPO using the Q-CARE/SYNCOR PPO providers during the term of this agreement and for one year following the termination of this agreement. 3. Hold Harmless Q-CARE/SYNCOR shall indemnify and hold harmless 'EMPLOYER' and Its officers and directors from and against all costs and expenses. including but not limited to attorney's fees, damages, claims and Judgments, arising out of any act or omission of Q-CARE/SYNCOR, and their officers, directors, employees, agents, representatives, subcontractors, successors or assigns, in connection with the PPO agreement. TIITAI 0 MI • Employer Agreement page 2 EMPLOYER shall indemnify and hold harmless Q-CARE/SYNCOR, and Its officers and directors and employers, agents, contractors, successors and assigns from and against all liability, Including but not limited to attorneys fees, damages, claims, Judgments, losses and liabilities whatsoever arising out of all acts or omissions of EMPLOYER and its officers, directors, employees, agents and contractors In connection with this contract. 4. Agart It is understood that the Q-CARE/SYNCOR is not an agent of any participating hospital or physician and receives no compensation nor commission from any participating hospital or physician. Accordingly, Q- CARE/SYNCOR assumes no responsibility for the professional services of any hospital or doctor. 5. Terms and Termination This agreement shall remain in force for one year commencing on j— /— q/ -]-and shall automatically renew thereafter for successive one year periods unless terminated by written notice not less than sixty (60) days prior to effective dote of such renewal. Either party, however, may terminate at any time In the event of a material default by written notice. 6. Miscellaneous a. All notices given by any party to the other(s) in connection with this Agreement and the transactions contemplated thereby shall be in writing and shall be deemed to have been properly given if and when delivered personally or sent by first class mail, addressed, if to Q-CARE/SYNCOR, to: Q-Care/Syncor Administrative Services, Inc. 650 Dundee Road Northbrook, Illinois 60062-2753 if to EMPLOYER: 1-7v --$ ArA6-/4J ifei.A Employer Agreement page 3 b. This Agreement shall be interpreted under the laws of the State of Illinois. In the event that any provision of this Agreement is deemed unenforceable by any court of competent jurisdiction, the remaining provisions hereof shall remain in full force and effect. c. This Agreement constitutes the entire Agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, oral or written. There are no warranties, representations or other agreements between the parties In connection with the subject matter hereof except as specifically set forth herein. No supplement to or modification or waiver of this Agreement shall be binding unless executed In writing by the parties to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed to constitute a continuing waiver thereof unless otherwise expressly provided herein or in accordance with this paragraph. d. This Agreement shall extend to and be binding upon the successors and assigns of the respective parties hereto. No party hereto may assign this Agreement without written consent of the other party. e. If any action of law or in equity is brought to enforce or interpret the provisions of this Agreement,the prevailing party shall be entitled to reasonable attorney's fees in addition to any of the relief to which it may be entitled. f. This Agreement may be amended by written agreement between Q-CARE/ SYNCOR and EMPLOYER. g. Where ever any words ore used herein in the masculine gender they shall be construed as though they were also used in the feminine gender In all cases where they would so apply, and where ever any words ore used herein in the singular form they shall be construed as though they were also used in the plural form In all cases where they would so apply. Titles of articles and headings of sections and sub- sections are Inserted for convenience of reference. They constitute no port of this Agreement and are not to be considered in the construction thereof. Dated this 28th _ day of December , i 990 EMPLOYER: • ter, By: City Ma a,er Q-CARE/SY , 4 : By: idoe TITLE: Z--z • �n °FFt Agenda Item No. December 5, 1990 MEMORANDUM TO: Mayor and Members of the City Council FROM: 'Femi Folarin, Human Resources Director SUBJECT: Preferred Provider Organization (P.P.O. ) Plan Purpose: This is to request Council 's approval for the implementation of a P.P.O. plan as part of the City' s Group Health Insurance plan. Background: In looking for ways to reduce the City' s Health Insurance cost , the Human Resources Department reviewed proposals from a number of Preferred Provider Organizations (P.P.O. ) . P.P.Os are organizations that effect health insurance cost savings through service utilization management and negotiation of reduced rates from hospitals and other medical service providers. The plan that best met our requirements is a Washington National Insurance recommended P.P.O. This is the only plan that will agree to our demand that the P.P.O. be provided as an umbrella over our existing health plan without separate employee enrollment procedure, identification cards or requirement that employees use only the P.P.O's participating hospitals and physicians. The benefit of the plan is that whenever City employees use participating hospitals or physicians the City would benefit from the Per Diem fee arrangement between the P.P.O. and the service providers. Had the City belonged to this plan between the period July 1 , 1989 to November 15, 1990 , it could have saved approximately $163 ,265.00 of the $826, 730 paid to the participating P.P.O. service providers. Savings will depend on usage of these facilities. Financial Impact: The total cost connected with implementing 47) this plan is $2 , 200 . $500 set-up fee to the P.P.O. and $1 ,700 down-loading fee to Syncor, our third party health insurance administrator. Recommendation: It is recommended that the Council approve the implementation of the P.P.O. plan and authorize the City Manager to sign the necessary papers. OF/vls 47) 47) a