Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: September 14, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a Professional Services Agreement with Paradigm Management
Services, LLC, for the Workers’ Compensation Medical Case Management Services for the Risk
Management Department; providing for the expenditure of funds therefor; and providing an effective date
(File 7554-1 – Professional Services Agreement awarded to Paradigm Management Services, LLC, in the
six (6) month not-to-exceed amount of $136,197.00).
INFORMATION/BACKGROUND
Under Chapter 406 of the Texas Labor Code, public entities are required to provide workers’ compensation
benefits to their employees. Workers’ compensation provides income protection benefits, impairment
benefits, and lifetime reasonable and necessary medical benefits to employees injured on the job on a “no
fault” basis.
The City of Denton self-insures those benefits for our employees; however, as an added layer of protection
for catastrophic claims, the City purchases an excess workers’ compensation insurance policy from
Midwest Employer’s Casualty Company (MECC). MECC has an A.M. Best rating of A+ XV with over $2
billion in assets. The City’s current policy (FY 2020/21) with MECC has a $1,000,000 per occurrence, self-
insured retention (SIR) on the part of the City. This means that the City is responsible for the first $1,000,000
of any single occurrence where one or more employees are injured. After the City has met the $1,000,000
SIR, then MECC will begin reimbursing the City for further costs.
When a serious injury does occur to an employee, one option available is engaging a medical case
management company specializing in catastrophic injuries to help ensure the best possible recovery and
medical outcome for the employee.
In cases where the total estimated costs will potentially exceed the City’s $1,000,000 SIR, the City partners
with MECC to select a qualified case management company since the insurance carrier, in many cases, has
a much more significant potential cost exposure than the City.
Paradigm Management Services, LLC (Paradigm) was recommended to the City by our broker of record
and MECC. MECC uses Paradigm exclusively for medical case management of their catastrophic workers’
compensation claims because of their specialization in complex claims.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
After an extensive evaluation of the employee’s injuries, Paradigm calculates a contract price. This price
includes the entire complex medical case management of the claim, including the payment of medical bills,
testing, durable medical equipment, and other services, for the contract term and guarantees Paradigm’s
assumption of all necessary and compensable medical costs and associated services to the family as needed
from the date of inception until the termination of this six-month contract.
In this situation, MECC agrees with the contract presented by Paradigm and has recommended acceptance.
As stated above, the City will be responsible for paying the full contract amount but will be reimbursed by
MECC for the total of $136,197.
RECOMMENDATION
Award with a contract to Paradigm Management Services, LLC, for the Workers’ Compensation Medical
Case Management Services for the Risk Management Department, in a six (6) month amount not-to-exceed
$136,197.
PRINCIPAL PLACE OF BUSINESS
Paradigm Management Services, LLC
Concord, CA
ESTIMATED SCHEDULE OF PROJECT
This is a six (6) month contract.
FISCAL INFORMATION
Funding for workers’ compensation claims expenses are budgeted in the Risk Retention Fund and are
reimbursed by our excess carrier MECC.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: LLC Members
Exhibit 3: Ordinance
Respectfully submitted:
Lori Hewell, 940.349.7100
Purchasing Manager
For information concerning this acquisition, contact: Deby Skawinski, 940-349-7810.
Legal point of contact: Marcella Lunn at 940-349-8333.