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Corizon Healthcare Contract Amendment, Arizona Department of Corrections, 2017

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CONTRACT AMENDMENT

CONTRACT NO. 13005 IDC

AMENDMENT NO. 14

ARIZONA
DEPARTMENT OF CORRECTIONS
1601 W. JEFFERSON, MIC 55302
PHOENIX, ARIZONA 85007
(602) 542-1172

Contact: Paul Pociask, Procurement Manager

A SIGNED COPY OF Tms AMENDMENT MUST BE RECEIVED BY THE DEPARTMENT OF CORRECTIONS.

September 6, 2017

Karey L. Witty
Chief Executive Officer
Corizon Healthcare
l 03 Powell Court
Brentwood, Tennessee 37027
Via Email: Scott.K.ingre1 1corizonhealth.com; Jennifer.Finger1n corizonhealth.com
Contract No. ADOC13-041943/130051DC - Privatization of All Correctional Health Services
The Contract is hereby amended as follows:
1. Contract Sanctions: The existing contract sanctions cap of $90,000 per month shall remain in
place from July 1, 2017 - October 31, 2017, and shall be removed completely effective
November 1, 2017. There will be no cap on contract sanctions from November 1, 2017 through
June 30, 2018. The removal of the cap on contract sanctions applies beginning with the
November 2017 performance measure results reported in January 2018.
2. Statewide Compliance Rate Incentive: Corizon is eligible for a $100,000 per month incentive
from October 1, 2017 - June 30, 2018 for each month at or above 90.0% statewide compliance
rate is achieved. Statewide compliance is defined per the existing perfonnance measuring
methodology under the Parson v. Ryan, et al. Stipulation. This incentive applies beginning with
the October 2017 performance measure results reported in December 2017.
Example: If November statewide compliance= 92.6%, then it would result in a $100,000
incentive for the month of November. If December statewide compliance = 89.8%, then it
would result in no incentive for the month of December.

3. Supplemental Statewide Compliance Rate Incentive: Corizon is eligible for a supplemental
monthly incentive for each full percentage point above the 90.0% statewide compliance rate
achieved. The supplemental amounts shall be as follows:
•
•
•

October l, 2017 - November 30, 2017
December 1, 2017 - February 28, 2018
March I, 2018 - June 30, 2018

$75,000
$100,000

$125,000

Statewide compliance is defined per the existing performance measuring methodology under the
Parson v. Ryan, et al. Stipulation. This incentive applies beginning with the October 2017
perfonnance measure results reported in December 2017.
Example: November statewide compliance= 92.6% (92.6% - 90.0% = 2.6%) it would result
in a $150,000 (2 * $75,000 *I month= $150,000) incentive for the month ofNovember.
Page 1 of3

CONTRACT AMENDMENT

CONTRACT NO. l30051DC

AMENDMENT NO. 14

ARIZONA
DEPARTMENT OF CORRECTIONS
1601 W. JEFFERSON, MIC 55302
PHOENIX, ARIZONA 85007
(602) 542-1172

Contact: Paul Pociask, Procurement Manager

A SIGNED COPY OF TRIS AMENDMENT MUST BE RECEIVED BY TUE DEPARTMENT OF CORRECTIONS.

4. CGAR Compliance Improvement Incentive: Corizon is eligible for a one-time incentive of
$35,000 per performance measure for each performance measure that is brought back into
substantial compliance as defined per the existing performance measuring methodology under
Paragraphs lO(b)(i) and lO(b)(ii) of the Parsons v. Ryan, et al. Stipulation. This incentive
applies only to the performance measures that do not meet the definition of substantial
compliance as defined per the existing performance measuring methodology under Paragraphs
1O(b}(i) and 1O(bXii) of the Parsons v. Ryan, et al. Stipulation, out of the total 849 performance
measures encompassed by the Stipulation. This incentive applies begiruring with the October
2017 performance measure results reported in December 2017.
For each of the performance measures that Corizon brings into substantial compliance as defined
per the existing performance measuring methodology under Paragraphs lO(b)(i) and IO(b)(ii) of
the Parsons v. Rya11, et al. Stipulation and for which the $35,000 COAR compliance
improvement incentive is received, such substantial compliance must be maintained through the
tenn of the contract. If Corizon receives an incentive payment under this paragraph, but such
substantial compliance is not maintained, Corizon shall return the $35,000 incentive to ADC.
Example: 5 measures brought into substantial compliance as defined per the existing
performance measuring methodology under Paragraphs IO(b)(i) and lO(b)(ii) of the Parsons
v. Rya11, et al. Stipulation will result in $175,000 (5 "' $35,000 = $175,000) incentive.
5. The calculations set forth in this Amendment will be predicated upon all 849 COAR
performance measures, even if some perfonnance measures are subsequently removed from
judicial oversight by the Court under the Parso11 v. Ryan, et al. Stipulation.
6. The maximum amount of incentives set forth in this Amendment shall not cumulatively exceed
$3,500,000. Total incentives shall include only incentives referenced in sections 2, 3, and 4.
Contract sanctions referenced in section l do not reduce or offset the total incentives.

7. Corizon shall remain subject to the existing $5,000 per performance measure sanction for any
failed performance measure that extends the monitoring period under the Parson v. Ryan, et al.
Stipulation.

8. Payments: For the services performed beginning October l, 2017, Corizon shall invoice ADC
for services that month utilizing the Inmate Count of State Prisons reported on the ADC Daily
Count Sheet of September 15, 2017. The 15th of the month Inmate Count will be used as the
estimated ADP for the following month from October 2017 through May 2018 as noted. Corizon
shall invoice ADC no later than the 20th of the month, beginning with September 20, 2017 (for
October's Invoice), for the following month's payment. For the month of June 2018, Corizon
shall invoice ADC for the June 1, 2018 through June 15, 2018 hunate Count, within three
business days of the 15th, including the reconciliations noted below. Corizon shall invoice ADC
Page 2 of3

CONTRACT AMENDMENT

ARIZONA
DEPARTMENT OF CORRECTIONS
1601 W. JEFFERSON, MIC 55302
PHOENIX, ARIZONA 85007

(602) 542-1172

CONTRACT NO. 13005 l DC

AMENDMENT NO. 14

Contact: Paul Pociask, Procurement Manager

A SIGNED COPY OF THIS AMENDMENT MUST BE RECEIVED BY mE DEPARTMENT OF CORRECTIONS.

for June 15, 2018 through June 30, 2018 Inmate Count within three business days of June 30,
2018. ADC shall pay the June 2018 invoices within seven business days of receipt.

9. Reconciliation: Corizon shall provide ADC documentation with December 2017's invoice,
reflecting the difference between actual inmate counts for October 2017 and the amount invoiced
and paid. The difference shall be reflected as an amount owed to ADC (if the actual count was
lower) or an additional amount owed to Corizon (if the actual count was higher). Subsequent
month's invoices shall reflect reconciliations for the months of November 2017 through April
2018, respectively. The reconciliation for April 2018 and May 2018 shall be reflected on the
June 20th invoice. See Table Below:
Month of
Service
October
November
December
January
February
March
April
May
June 1st -15th
June 16th - 30th

Inmate Count
Date
09/15117
10/15/17
11/15/17
12/15/17
01115118
02/15/18
03/15/18
04/15/18
Actual Count
Actual Count

Invoice
Date
09/20/17
10/20/17
11/20/17
12/20/ 17
01/20/18
02/20/18
03/20/18
04/20118
06/20/18
07/05/18

Payment
Date
10/01117
11/01117
12101117
01101/18
02/01/18
03/01/18
04/01/18
05/01/18
06/29/18
07/16/18

Reconcile
Date
12120/17
01/20/18
02120/18
03/20118
04/20/18
05/20/18
06/20/18
06/20/ 18
NIA
NIA

ALL OTHER PROVISIONS OF THE CONTRACT SHALL REMA.IN IN THEIR ENTIRETY.
Vendor hereby acknowledges receipt and
understanding of this Contract Amendment

~/UW?ti~?
Signature

•

This Contract Amendment is executed
this 1..fl1. day of September, 2017
in Phoenix, Arizona.
/

· Date

Roland Maldonado, Senior VP Operations
Typed Name and Title

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