90-1226 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:
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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
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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
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