Okaloosa County School Board workshop members discussed amending the Marathon Health employee-clinic contract to remove language about purchasing a building and to move forward with a district clinic intended to serve employees and eligible dependents. "We're asking to amend the Marathon contract to remove any language about the building purchase," said Sarah Cato, director of risk management, during the meeting.
The superintendent and staff said the clinic will provide basic urgent and primary-care services such as treatment for minor cuts, sinus infections and routine lab work; on-site generics for common prescriptions; virtual visits and a patient portal; and Saturday hours. Staff presented a target to open the first clinic in January, with a backup window in February if needed. The district plans to fund the clinic from its self-funded medical plan, not from general operating funds.
Why it matters: district staff and board members framed the clinic as a way to improve access to care for employees, reduce unnecessary emergency-room and urgent-care claims, and lower the district s self-funded insurance costs over time. Sarah Cato estimated the district could begin seeing a return on investment about 18 months after the clinic opens. The board and staff emphasized that utilization will determine the financial impact.
Details presented
- Contract change: Cato said staff removed building-purchase language from the Marathon agreement and will procure the building through a cooperative contract instead. Vince Wyndham, program director for purchasing, identified a cooperative-approved vendor for that procurement.
- Services and staffing: Staff described an opening staffing model that includes one provider (physician or PA), one registered nurse and four medical assistants, multiple exam rooms and a mix of scheduled, walk-in and virtual visits.
- On-site capabilities: The clinic will offer common lab tests (results available in the portal), about 80 common generic prescriptions dispensed on-site or shipped to home for virtual visits. Staff said the clinic will not provide x-rays at opening because of the regulatory and capital costs.
- Referrals and coverage: Staff said the clinic will coordinate with in-network providers (UnitedHealthcare) for specialty referrals. Retirees who remain on the district medical plan may use the clinic unless Medicare Part A or Part B rules prevent their participation; staff distinguished that Medicare rules, not district policy, determine eligibility in those cases.
- Funding and costs: The superintendent and risk-management staff said the clinic will be paid from the district s self-funded health plan. During questioning, staff described an estimated pass-through line for pharmaceuticals and labs (a not-precise, planning estimate noted on the handout) and said those pass-through costs will vary based on utilization.
Board and staff comments
Supervising staff and several board members stressed the need for strong employee outreach and utilization to achieve savings. A district representative who reviewed Marathon's services described the vendor as experienced in the model and said the company conducts marketing and offers scheduling options to encourage use. Paul Lutz, identified as the Marathon clinic manager, will be the district's on-site contact for operations and problem reports.
What the board decided and next steps
The item (consent agenda item 7.23) was presented and recommended by the superintendent; staff asked the board to approve the amendment to remove building-purchase language and proceed with cooperative procurement for the building. A formal vote was not recorded on the transcript excerpted here; staff said the amendment was recommended for approval and described next steps for outreach during open enrollment and implementation workstreams.
Ending
Staff said they will monitor utilization, report back on operations and coordinate communications to employees during open enrollment. The district intends to add additional clinics in the north and central parts of Okaloosa County if the first site meets utilization and financial expectations.