Aurora council approves five-year near-site clinic contract with Marathon Health for city employees

The Aurora City Council on Dec. 17 approved a five-year health services agreement with Marathon Health to establish a near-site clinic for City of Aurora employees, covered dependents and pre‑Medicare retirees at the Bloom Haven campus.

City officials and Marathon Health representatives said the clinic is intended to provide advanced primary care, occupational-health services and initial workers'‑compensation triage, and to reduce variable retail urgent‑care and emergency‑room claims.

Why it matters: City staff and the benefits consultant told council members the clinic will let the city fix a large portion of predictable claim costs under a managed, site‑based model rather than leave those visits to higher‑cost retail providers. Staff estimated the arrangement could generate roughly $1 million of gross claim savings in year one as utilization increases and projected cumulative savings of roughly $5.5 million to $6.5 million over five years under current assumptions.

Details: The service agreement calls for Marathon Health to operate a roughly 2,500‑square‑foot clinic on Bloom Haven's second floor. The proposed staffing model presented to council included one medical doctor, two medical assistants and a licensed clinical social worker. The contract amount discussed in the presentation was $1,250,000 per year for operations; build‑out costs of about $1,100,000 would be funded using one‑time credits tied to the city's new Blue Cross Blue Shield plan and related incentives, city staff said. The service fee has an annual escalator of about 4.76 percent; presenters contrasted that with a projected medical trend of about 9.5 percent.

Marathon Health's public‑sector practice leader, Larry Morrissey, summarized the operator's model: "We provide advanced primary care, occupational health, and total population health services through a value based care model not fee for service," Morrissey said. He cited a long‑running program in Rockford, Ill., as an example of the operator's results and engagement metrics.

Council discussion and oversight: Council members asked about staffing capacity, union input, retirees and how workers'‑comp cases would be handled. Mike Baker of Assured Partners, the city's benefits consultant, said the clinic is an additional in‑network provider and that for PPO plan participants the clinic would provide care with no member cost share (HSA plan members would see a $25 copay). Chris Minnick, the city's chief financial officer, told the council the city expects to stagger bond issuances and other financing to limit interest costs while supporting the capital program that includes the clinic build‑out.

Access and reach: Marathon and staff said the clinic would be voluntary for employees; it is intended to be the city's initial workers'‑comp treatment site, with employees retaining the right under Illinois workers'‑comp rules to seek their own follow‑up care. Presenters said post‑65 retirees on the city's Medicare Advantage plan would not retain access through the city's active plan once enrolled in Medicare Advantage.

Contract safeguards and union engagement: Presenters said the agreement includes an opt‑out provision for the city and that HR has engaged collective bargaining units through the city's annual benefits negotiations. Presenters said Marathon will monitor utilization monthly and recommend additional staff if demand exceeds target thresholds.

Vote and next steps: The resolution authorizing the city manager (mayor) to execute the agreement passed on a 10–1 roll call vote (Alderman Loesch recorded as opposing). Alderman Warman recused himself from the discussion and left the chamber before presentations began.

A city staff timeline presented to the council set a target to open the clinic by October 2025, contingent on final construction bidding and permits.

Ending: Council approval sends the agreement to execution and authorizes staff to proceed to construction bidding, design review and permit processing for the Bloom Haven location. Staff said they will provide ongoing utilization and savings reports to council as the program is implemented.