Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve the Contract with Marathon Health as the City’s Employee Health Clinic Provider.
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Submitted By: Natalie Cabrera, Director, Human Resources
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Summary Brief (Agreements/Contracts only)
1. Prepared by: City of Port St. Lucie and Marathon Health
2. Parties: City of Port St. Lucie and Marathon Health, LLC
3. Purpose: Administration of provider services for the employee health clinic
4. New/Renewal/Modified: New
5. Duration: Three (3) year contract term with two (2) additional one (1) year renewals available
6. Benefits to Port St. Lucie: Provide employees with convenient access to appropriate primary, preventive, and other eligible health care services thereby reducing avoidable or higher-cost claims that may otherwise be incurred through the City’s medical plan.
7. Cost to Port St. Lucie (Annual and Potential): $2,149,600.00 annually. Commencing October 1, 2027, the annual fee may increase by no more than five percent (5%) annually. This five percent (5%) cap applies to each year after October 1, 2027, including any renewal years.
Presentation Information: Staff is available to answer questions the Council may have.
Staff Recommendation: Move that the Council approve the contract, in substantially the same form as attached, with Marathon Health as the City’s employee health clinic provider.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the contract, in substantially the same form as attached, with Marathon Health as the City’s employee health clinic provider.
2. Move that the Council provide staff direction.
Background: The City, through its third-party administrator, released a Request for Proposals (“RFP”) to the market for employee health clinic provider services. Based on the proposals received, and after conducting due diligence, it was determined that Marathon Health best meets the City’s objectives of providing quality health center management services while supporting the City’s long-term financial and operational goals.
Issues/Analysis: City staff have worked in conjunction with Marathon Health to negotiate and finalize a Health Services Agreement with mutually acceptable terms and conditions. Under the agreement, Marathon will provide health services for the City’s Employee and Family Health Clinic. These services provide the City with an opportunity to proactively manage employee health care utilization and associated medical plan costs. The clinic is intended to provide employees with convenient access to appropriate primary, preventive, and other eligible health care services, which can support early identification and treatment of health conditions and more effective management of ongoing care. By providing an accessible point of care, the clinic may help reduce avoidable or higher-cost claims that would otherwise be incurred through the City’s medical plan. Over time, reduced claims activity and improved management of health care utilization may contribute to lower overall medical plan expenditures. The anticipated benefit extends to both the City and its employees: For the City, improved claims management may help contain the overall cost of providing employee health benefits; for employees, controlling medical plan costs can help moderate the financial impact of health care expenses, including employee premium contributions and other plan-related costs. Accordingly, the proposed agreement represents a proactive approach to employee health care that supports the City’s objectives of providing quality health benefits while promoting responsible stewardship of public funds and managing the long-term cost of the City’s medical plan.
Financial Information: The rate, inclusive of all applicable start-up, administrative, service, and related costs and expenses, is approximately $2,149,600.00 for the initial contract year. The rate includes a five percent (5%) annual escalator for contract years two (2) and three (3). The final fiscal impacts will be incorporated into the City’s medical trust fund.
Special Consideration: Marathon Health was founded in 2001 and has been recognized six times as Best in KLAS for employer-sponsored healthcare services. They offer advanced primary care and tailored solutions to meet the unique needs of our City employee population. Marathon Health has twenty-six (26) Florida clients, of which twenty-two (22) are public sector agencies. Marathon provides advanced primary and acute care, with concierge referral management services and 24/7 access to virtual care with a Nurse Practitioner that has the ability to escalate matters to a licensed physician.
Location of Project: Best Street Employee Health Clinic
Attachments:
1. Contract between the City of Port St. Lucie and Marathon Health, LLC
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26126-06
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.