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PERS committee approves five‑year MRO contract for disability determinations after questions on cost and speed
Summary
PERS staff recommended and the committee approved a five‑year contract with MRO for disability determinations, saying the full‑service provider could speed case turnaround and broaden specialty access; staff said estimated costs are comparable to existing spending but will be clarified.
The administrative committee approved moving forward with a five‑year contract with MRO (a full‑service medical review organization) to provide disability determination services for PERS.
Staff said the RFP was scored by Melanie Estridge, Lisa Green and Brandy Harris and that MRO was the recommended vendor. Presenters described MRO as a turnkey provider that performs case reviews, independent medical examinations and hearings; staff said the contract could reduce turnaround time and improve access to medical specialties compared with the current panel of internal‑medicine physicians, which frequently requires outside referrals.
Board members pressed for budget detail. Staff said current annual spending (including salaries and reviews) is over $100,000 and estimated that using MRO at a per‑case example rate of roughly $695 could leave the program comparable to current costs; staff pledged to provide precise budget comparisons after the meeting. Lisa Green said the vendor’s RFP response included guaranteed turnaround timings for hearings and reviews, and that staff expects improved customer service and fewer scheduling delays. The committee moved, seconded and carried the approval to proceed with MRO under the terms described in the RFP.
