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ESTABLISH PREFERRED CARE PROVIDER LIST FOR AFTER HOURS VETERINARY HOSPITAL AND EMERGENCY SERVICES
recommended action
RECOMMENDATION
It is recommended the City Council establish by resolution a rotating list of preferred care providers for After Hours Veterinary Hospital and Emergency Services for the Stockton Animal Shelter.
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Summary
The Stockton Animal Shelter (the Shelter) does not operate on a 24-hour basis. Therefore, it is necessary from time to time to send sick or injured animals to another provider to receive after hours or overnight veterinary hospital care. In addition, the Shelter does not yet have the ability to assess animal injuries in emergency situations through x-rays. This necessitates sending the animals to off-site veterinary clinics for x-ray evaluation.
In order to contain the costs of outside care and better manage fiscal resources, the Shelter staff, in conjunction with the San Francisco Society for the Prevention of Cruelty to Animals (SF SPCA), designed a tiered veterinary care service schedule and associated fee structure. This tiered service and fee proposal was then released under a Request for Qualifications to all Stockton Veterinarians, Animal Hospitals, and Emergency Care Veterinarians inviting their participation in a rotating list of preferred After Hours Veterinary Hospital and Emergency Services providers.
DISCUSSION
Background
The total Fiscal Year 2013-14 budget for outside veterinary services was $10,834. By the end of the year, the Shelter spent over $100,000 for these services. This was due to several factors. The Shelter set a goal to reduce euthanasia and increase the live release rate to 75%; therefore, more animals were sent to outside veterinary services for emergency and/or overnight care. Because of the bankruptcy, only a few local veterinarians were willing to work with the Shelter, limiting the Shelter’s ability to negotiate service rates. The Shelter lacked the ability to control veterinary charges because there was not a set standard of care. This resulted in the veterinary service providers using their best judgment to prescribe and perform services to save the animal’s life.
The benefit of achieving a higher live release rate often resulted in significantly higher service bills. The added challenge of services being provided on evenings, weekends and holidays when the Shelter was unable to provide direction concerning the veterinarian’s prescribed services made it difficult to control costs at the onset. The increased volume of invoices from outside veterinarians turned in late or missing was due to a lack of requirements to submit the invoices in a timely manner. This caused an increased workload on the understaffed Shelter making it difficult to care for the animals and verify costs at the same time. The Animal Shelter’s budget for veterinary services was increased $100,000 in Fiscal Year 2014-15 to accommodate for these unknowns and challenges and underscored the need to better contain and control what veterinary services are provided and at what cost.
Present Situation
In order to address the budget overage and better manage the required veterinary care services, the Shelter staff along with the SF SPCA developed a three-tiered structure for outside services attached to a set fee schedule that is valid for a three-year contracted period. Each tier is thoroughly defined with what services are included and what price the Shelter will pay the provider. Tiered services and pricing will not change during the contract period.
The Shelter wants to further formalize this process by using two lists of approved veterinary service providers who will not only agree to the three-tiered service structure and fee schedule, but will also submit to invoicing and service controls. Over the last year, the Shelter has put checks in place to control costs. Two full-time veterinarians are onsite 6 days/week to review animal care needs and prescribe specific services from emergency or hospital providers. This agreement is the last piece of the puzzle. The agreement adds controls for clearly defined costs associated with services as well as invoice timing and prescribed service restrictions.
The two lists are: 1) After-Hours Veterinary Hospital care, and 2) Emergency care. The Shelter does not operate on a 24-hour basis. Therefore, it is necessary from time to time to send sick or injured animals to another provider to receive after hours or overnight veterinary hospital care. In addition, the Shelter is not able to assess animal injuries in emergency situations through x-rays. This necessitates sending the animals to off-site veterinary clinics for x-ray evaluation. A veterinarian may be on both lists if qualified. The Shelter prefers a minimum of three veterinarians for each list. However, since we did not receive enough responses to reach the minimum, the City Manager or designee reserves the right to add veterinarians as they become known and are willing to meet the pricing and qualifications set forth in the RFQ while the contract is in effect. All of the listed providers have agreed to abide by the Shelter’s fee schedule and stipulations and have been placed on the following lists:
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After-Hours Veterinary Hospital |
Emergency Veterinary Services |
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Family Pet Hospital |
Family Pet Hospital |
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Andrew J. Frey, Inc., dba Stockton Veterinary Emergency and Specialty Care Center |
Andrew J. Frey, Inc., dba Stockton Veterinary Emergency and Specialty Care Center |
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OPEN |
OPEN |
Contracts for both providers are attached to this staff report (Attachments A and B).
FINANCIAL SUMMARY
In 2014, the Shelter sent 518 animals to receive outside veterinary care. The average bill was $193 per animal. The new fee schedule brings the average price down to $125, saving a potential $35,000 per year with the three-tiered service and fee schedule implementation. Possible savings over the three-year contract period are estimated at $105,000. This is based on the same level of care provided to a similar number of animals each year, but at a set cost according to the contract terms. It is the set pricing structure that will help achieve cost savings to the Animal Shelter’s General Fund budget in account no. 010-2466-530.
Attachment A - Contract - Family Pet Hospital
Attachment B - Contract - Andrew J. Frey Inc.