Title
Joint committee action approving Change Order No.1 for the therapy services agreement with Select Rehabilitation to provide physical, speech and occupational therapy services to residents at Winchester House.
Staff Summary
· In December 2011, the Lake County Board authorized a six month contract (January 1, 2012 to June 30, 2012) with Select Rehabilitation to provide physical, speech and occupational therapy services to residents at Winchester House in the amount of $228,000.
· The original contract price was estimated based on the Medicare census for the last month of Fiscal Year 2011, which was 13 per day.
· For March, April, and May of 2012 the average Medicare census increased to 23 per day, thus increasing cost.
· Change Order No. 1 increases the amount of the therapy services agreement by $270,000 to $498,000 and will complete the six month contract.
· As a result of the increased services, Medicare revenue did increase and was accounted for in the amended Winchester House budget.
· In accordance with the Lake County Purchasing Ordinance it is hereby requested that the Purchasing Agent be authorized to execute the required change order.
Body
TO: Chair, Health and Community Services Committee
FROM: Ruth Anne Hall, Purchasing Agent
DATE: June 26, 2012
RE: Contract Modification - Agreement No. 11205
1. In December 2011, the Lake County Board authorized a six month contract (January 1, 2012 to June 30, 2012) with Select Rehabilitation to provide physical, speech and occupational therapy services to residents at Winchester House in the amount of $228,000.
2. The original contract price was estimated based on the Medicare census for the last month of Fiscal Year 2011, which was 13 per day. For March, April, and May of 2012 the average Medicare census has increased to 23 per day, thus increasing cost.
3. Corresponding revenue from reimbursement from the contract was originally budgeted for Medicare A and B was $2,411,030 and was amended to $3,801,348 by HDG for FY2012.
4. Change Order #1 increases the amount of the Therapy Services Agreement by $270,000 from $228,000 for a total of $498,000 and will complete the six month contract.
4. In accordance with Article 8, section 101 (1) of the Lake County Purchasing Ordinance, it is hereby requested that the Purchasing Agent be authorized to enter into Contract Modification #1.
5. This modification will cost the County an amount not-to-exceed $270,000 charged to account # 218-4102010-72870.