Title
Resolution Authorizing an On-Site Clinic for City of Foley Employees
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
Resolution Authorizing an On-Site Clinic for City of Foley Employees
SOURCE OF FUNDING:
Please provide the amount requested: $45,000
Is this a budgeted item? Yes (will transfer from surplus departmental retirement expense accounts)
Please provide the budgeted amount: $45,000 Account No. 01-6xx-1050
If budgeted, is this a capital purchase, capital project, or special fund? The $45,000 cost of renovating the building will be a capital project.
Was this item included in the Fiscal Year Capital Projects Plan? No
If yes, please provide the amount included in Capital Projects Plan: $___________
Body
WHEREAS, the City of Foley went fully self insured in late 2008 and since that time the City has saved approximately $2 million dollars in health care costs, and
WHEREAS, the City continues to explore various options for controlling health care costs, and
WHEREAS, employers can take steps to direct or even limit health plan participants' choices to lower cost providers and one strategy to manage choice of providers while improving the quality of the health benefit for employees is on-site health centers, also known as on-site clinics, and
WHEREAS, research has found that on-site clinics offer a substantial return on investment: figures range from $1.60 to $4.00 saved for every dollar invested (Government Finance Officers Association, 2011, copy attached).
WHEREAS, the City has researched several options and companies for implementing and managing an on-site clinic and a wellness program for the City and has determined that Symbol Health Solutions, L.L.C., provides a proven model that requires little start up cost, and
WHEREAS, the City of Gulf Shores is also considering using Symbol Health Solutions, L.L.C. for their on-site clinic and this would allow the City of Foley and the City of Gulf Shores to partner on their clinics thus improving the accessibility of the clinic for employees of both cities, and
WHERAS, the City has a vacant building at 230 E. Orange which could be renovated to meet the needs of the clinic, and, Symbol Health Solutions, L.L.C. would renovate and retrofit that building to their specifications for an on-site clinic and direct bill the City for those costs, $45,000 in FY13 and $30,000 in FY14, and
WHEREAS, there is surplus funds available in departmental retirement expense accounts to cover the FY13 costs of $45,000 and, the insurance accounts for FY14 would be further reduced from the first pass of the budget by $35,000 to cover the FY14 final costs of renovating the building for the clinic, and
WHEREAS, the anticipated savings from the clinic (excluding cost of renovations to the building) are estimated at approximately $240k for FY14 and $266k for FY15 (see attached cost analysis), and
WHEREAS, the City desires to open the on-site clinic for employees and their dependents beginning FY14.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves the attached Symbol Health Care Solutions contract for an on-site clinic and wellness program for the City of Foley.
SECTION 2: Approves the use of $45,000 surplus cash made available from departmental retirement expense accounts #01-6xx-1050 projected to close under budget to be used to the FY13 cost of renovations to the building at 230 E. Orange for use as a clinic to be completed and billed by Symbol Health Solutions, LLC. and appropriates $45,000 to account 12-665-7326 R05 CLINIC.
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.