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Sparks City Council Meeting 11/27/2017

General Business: 9.6

Title: Consideration, discussion and possible approval to participate in an agreement (AC5427) negotiated by Nevada Health Partners (NHP) with Northern Nevada Medical Center (NNMC) to provide hospital services to employees, dependents and retirees covered by the City’s Group Health Plan for the period of January 1, 2018 through December 31, 2018, and authorization for the City Manager to execute the participation agreement for these services.
Petitioner/Presenter: Neil Krutz, Assistant City Manager/Jen McCall, Senior HR Analyst
Recommendation: That the City Council approve to participate in an agreement negotiated by Nevada Health Partners (NHP) with Northern Nevada Medical Center (NNMC) to provide hospital services to employees, dependents and retirees covered by the City’s Group Health Plan for the period of January 1, 2018 through December 31, 2018, and authorization for the City Manager to execute the participation agreement for these services.
Financial Impact: NHP negotiated a competitive one-year renewal rate of 2.38% over rates negotiated in January 2015.
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

This agenda item is a request for approval to participate in an extension to the current agreement with NNMC to provide hospital services to employees, dependents and retirees covered by the City’s Group Health Plan. This is a one-year agreement, beginning January 1, 2018 and ending December 31, 2018.  As part of this agreement there is 2.38% increase to the rates for hospital services.



Background:

The current three-year agreement with NNMC will expire on December 31, 2017.  This request will allow the City’s Group Health Plan to continue to utilize NNMC as an in-network provider hospital, providing services to employees, dependents and retirees on the City’s Group Health Plan.

The City, in partnership with NHP began negotiating a renewal of the current participation agreement with NNMC in early 2017.  NHP, the contracting arm of the Nevada Business Group on Health (NVBGH), is an organization of Nevada employers committed to containing health care costs. NHP provides access to high-quality health care benefits at a sustainable cost. Members of NHP, including the City of Sparks, are public and private sector self-insured employers who actively participate in medical and health care services contracts.

NHP made a final recommendation to the contracting committee and NVBGH members to extend the current participation agreement with NNMC.

It should be noted that while this participation agreement is with NNMC, both Renown and Carson-Tahoe Hospital will continue to be considered participating in-network provider hospitals.



Analysis:

As a self-insured group health plan, city staff, with the assistance of NHP and NVBGH, continues to look for competitive vendor relationships to address challenges with the rising cost of medical care. A renewed participation agreement with NNMC will allow the City to continue the current relationship with the only hospital in Sparks, providing not only hospital services but also emergency, laboratory, and radiology services to members on the City’s Group Health Plan.  Additionally, by keeping NNMC on the City’s Group Health Plan, members will continue to have another in-network hospital option.

The proposed renewal with NNMC is for one-year and the negotiated renewal rate is 2.38% over current hospital rates negotiated in January 2015.  This is a competitive renewal rate for hospital services.



Alternatives:

1.  The Council may choose to approve to participate in an agreement negotiated by NHP with NNMC for hospital services for employees, dependents and retirees covered by the City’s Group Health Plan for the period January 1, 2018 through December 31, 2018, and authorization for the City Manager to execute the participation agreement for these services.

2.  The Council may choose not to approve to participate in an agreement negotiated by NHP with NNMC for hospital services for employees, dependents and retirees covered by the City’s Group Health Plan for the period January 1, 2018 through December 31, 2018.

3.  The Council may choose not to approve to participate in an agreement negotiated by NHP with NNMC for hospital services for employees, dependents and retirees covered by the City’s Group Health Plan for the period January 1, 2018 through December 31, 2018, and direct the City Manager to provide alternatives to staff.



Recommended Motion:

I move to approve to participate in an agreement negotiated by NHP with NNMC for hospital services for employees, dependents and retirees covered by the City’s Group Health Plan for the period January 1, 2018 through December 31, 2018, and authorization for the City Manager to execute the participation agreement for these services.



Attached Files:
     Northern Nevada Medical Center Participation Agreement 1-2018.pdf

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