HomeMy WebLinkAboutItem 06 City of Springfield Wellness Clinic Contract AGENDA ITEM SUMMARY Meeting Date: 12/1/2014
Meeting Type: Regular Meeting
Staff Contact/Dept.: Laura Turner Staff Phone No: 541-726-3787
Estimated Time: Consent Calendar
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and
Innovative Government Services
ITEM TITLE: CITY OF SPRINGFIELD WELLNESS CLINIC CONTRACT
ACTION REQUESTED:
Authorize City Manager to enter into a contract with Willamette Community Health Solutions DBA Cascade Health Solutions in the amount not to exceed $160,000 to provide primary and preventative medical services for the City’s Wellness Clinic.
ISSUE
STATEMENT:
The City of Springfield has sponsored an employee Wellness Center since 2009. A
contract with Cascade Health Solutions staffed the center with a Registered Nurse on a part-time basis through the spring of 2014 with minimal staffing since then.
Now that the City self-funds our medical benefits, it is more feasible to increase
medical services to our employees through our on-site center.
ATTACHMENTS: 1. Sole Source Justification 2. Cascade Health Solutions Independent Contractor Agreement
DISCUSSION/
FINANCIAL IMPACT:
Primary and preventative care medical services can be provided by a Family Nurse
Practitioner for our employees, retirees and their dependents. The attached contract reflects an increase in service level and a change from being a Wellness Center to a
Wellness Clinic. The City will begin clinic operations with a part-time Family
Nurse Practitioner who will staff the clinic three full days a week in the existing location which is not adequate for medical services. The intention is to move the
clinic early in 2015 to a larger facility. This contract reflects both existing and relocated service provisions. The contract includes the cost of the Family Nurse Practitioner time, all record keeping, all medical supplies and equipment. More
information regarding the rationale for a clinic is available in the attached Sole Source Justification document.
In determining whether a clinic is a financially feasible move for the City, we reviewed past claim history. Over 14% of our claims in 2013 were for routine office visits, exactly the type of service an employee clinic can provide. At the
most conservative estimate, if we can divert 1% of the total cost of medical service to the clinic, it will result in a minimum savings of $40,000 annually, based on paid
claim amounts for 2013. Claim data from January to September 2014 indicates that
the City has spent approximately $380,000 on routine doctor visits. If 50% of these visits are redirected to the Wellness Clinic, the resulting savings will cover the cost
of this $160,000 contract. In addition, the passage of the Affordable Care Act
(ACA) has dramatically changed health care accessibility. The demand for primary care services has increased exponentially due to the ACA’s requirements, and
obtaining primary care services has become more difficult. Access to a primary care provider who can provide timely preventative care should result in fewer visits to expensive urgent care or emergency room facilities. Other savings are more
difficult to quantify: having an on-site clinic will minimize the need for employees
to travel and be away from their job longer than necessary, so productivity should be greater.
Staff recommends that Council authorize the City Manager to sign the contract and sole source.
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