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The Honorable Paul Osborne <br /> ' City of Decatur <br /> August 30, 2006 <br /> Page 3 <br /> � Claims Audit of Consociate Dansig's TPA services <br /> ❑ Do administrative procedures ensure efficient administration of the Plan? <br /> ❑ Are claims paid in accordance with Plan provisions? <br /> Please note that fees for these engagements are presented separately on pages 6 and IO of this <br /> correspondence. <br /> SEGAL'S APPROACH AND WORK PLAN <br /> We believe it is critical to the success of the project to employ a thought-based approach to ensure that the <br /> outcome meets the City's benefits and financial objectives and is in line with the organization's guiding <br /> principles. We will assist the City in articulating key issues, objectives, and desired outcomes. This will <br /> ensure recommendations are best positioned to achieve the specific results sought by the City. Finally, <br /> through our deep technical staff resources (including actuaries, doctors, nurses, pharmacists, health plan <br /> directors, and other managed care experts), we will apply a level of actuarial and analytical rigor. <br /> h'ic� (JffJ/f�ftif�; <br /> We will begin this assignment by scheduling a meeting with City staff to initiate the relationship and to <br /> fully clarify the scope of the consulting engagement. At the kick-off ineeting, we will: <br /> . Confirm the goals and objectives of the consulting engagement; <br /> � Present a preliminary consulting plan based on our understanding of the engagement, and discuss <br /> the plan, project scope and timelines in detail; <br /> � Establish parameters for keeping City staff updated, adjusting the consulting plan to fit the City's <br /> specific needs; and <br /> � Identify data needed for the overall engagement. <br /> The kick-off ineeting will allow Segal to gain an understanding of the current structure, operations, and <br /> issues with the City's benefit programs, as well as staff opinions and observations about the future <br /> directions for the programs. <br /> Following the kick-off ineeting, we will update the consulting plan that will serve as the primary <br /> management tool for the engagement. We will also summarize the discussion and decisions made at the <br /> kick-off ineeting into a list of open issues to be addressed. We have found that this approach helps us to <br /> keep a short-view perspective on the day-to-day management of the project while maintaining a longer- <br /> view perspective on broader issues that need to be addressed going forward. <br />