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Meeting Date:
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6/15/2010 - 7:30 PM
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Category:
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Consent Agenda
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Type:
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Action
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Subject:
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9.18 (Item 21) Increase of contract amount between Mt. Diablo Unified School District (MDUSD) and Paradigm HealthCare Services, Inc. for the 2009-2010 school year.
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LCAP (Local Control Accountability Plan) Goal:
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Enclosure
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File Attachment:
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Summary:
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The California Department of Health Care Services (DHCS) has recently increased reimbursements to school districts in the process of correcting an error pertaining to the service reimbursement rates for Medi-Cal. Since 2006, incorrect reimbursement rates were being used. DHCS is now retroactively applying the higher reimbursement rates to past paid claims and sending out reimbursement checks to all Local Educational Agencies (LEA). In addition to the increase in Medi-Cal reimbursement mentioned above, the Federal Medical Assistance Percentage (FMAP) was increased due to the increase in unemployment in California. This also results in an increase in federal match reimbursement. These corrections result in additional revenue for the District.
MDUSD has a contract with Paradigm HealthCare Services, Inc. (Paradigm) to prepare and submit Medi-Cal claims to DHCS for the reimbursement of health care services provided by MDUSD as a Local Education Agency (LEA). The cost of their services is calculated monthly by taking the approved Medi-Cal reimbursements and adjustments for the month and multiplying the amount by 11%. The monthly invoices are paid against the incoming revenue from Medi-Cal reimbursements; therefore, the costs of these services are cost neutral.
The 2009-2010 contract was first approved by the Board on 5/26/09 for $31,000. Since MDUSD is now receiving additional Medi-Cal reimbursements, there has been an increase in the cost for Paradigm services.
The contract was increased to $100,000 on February 23, 2010 and has covered the expenses up until April, 2010. Staff requests an additional $22,000 to cover the remaining costs for the 2009-2010 fiscal year. This will bring the total Paradigm contract to $122,000.
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Funding:
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Medi-cal (California's Medicaid Program). Program Code: 3091.
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Fiscal Impact
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No impact to the general fund.
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Recommendation:
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Approve increase in contract amount as presented.
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Approvals:
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Recommended By:
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Signed By:
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Mildred Browne - Assistant Superintendent
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Signed By:
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Bryan Richards - Chief Financial Officer
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Signed By:
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Steven Lawrence - Superintendent
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