Residents question district health center cost; administration defends $500,000 contract and reported cost avoidance

Two members of the public raised concerns about district spending and the health care center; staff provided a summary of the center’s contract, costs and claimed cost avoidance.

During public comment, Mr. Patchell, a Lansdale resident, said, "Stop spending money you don't have," and criticized broader district spending. Jason Near, another resident, urged the district to cut expenditures and questioned whether the health care center had produced the claimed savings. He cited district health-insurance premium totals and said premiums had increased despite the center’s operation.

Dr. Bauer and Mr. Linderman responded to public comments with a staff analysis prepared by the business office. Linderman summarized the contract with Marathon Health stating, "The center runs through a contract with Marathon Health… The cost of the center is approximately $500,000 per year through our contract with Marathon for the physician's assistants, the nurse practitioners, and the medical assistants." He added that staff estimate the center produced about $1,100,000 in avoided claims in its first full year and said the district, which is self-funded for claims, realizes those avoided claims as direct bottom-line savings. Linderman also noted that North Montco (a partner program) has about 48% of its budget paid by North Penn, so savings realized by that partner affect North Penn’s costs.

Linderman told the committee the district budgets health-care premiums using a multi-year trend model and that one year of data has not yet materially changed projections; staff expect further data in future years to inform long-term trends. The committee did not take formal action on the public comments; staff said final numbers for the current year would be available in upcoming financial reports.