School board approves budget amendment for proposed Dean SSM on-site clinic and preapproves employee step increases
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Summary
The board approved a fiscal-year 2025 budget amendment to set aside capital funding for a proposed on-site clinic in partnership with Dean SSM Health, and approved step increases for staff ahead of the 2025-26 budget. Administrators presented estimated construction and operational costs and projected claims reductions over several years.
The Verona Area School District Board of Education on April 21 approved a budget amendment that creates a funding source for a proposed on-site or near-site clinic to be operated in partnership with Dean SSM Health and preapproved employee step increases for the 2025-26 year.
District staff presented a plan developed with Dean SSM Health that would staff the clinic with roughly the equivalent of 1.2 advanced practitioners, 1 medical assistant and a 0.6 behavioral health provider; the district's presenters described that as roughly three staff positions scaled across part-time and full-time roles. The renovation cost estimate presented for converting existing district space was between $500,000 and $700,000; district staff recommended setting aside $800,000 in capital fund balance (Fund 39) to cover the build-out and to allow time to finalize a location and construction estimate.
Rochelle (district staff) and Chad (district staff) explained that Dean SSM would run operations under a contract: the district would pay Dean SSM to operate the clinic and the district would not receive individual medical records. District staff said the contract and operating cost would likely be budgeted separately and estimated ongoing operating payments to Dean SSM of about $700,000 per year.
Administrators and Dean SSM cited potential savings tied to claims avoidance; Dean SSM and peer districts in Dane County reported evidence that on-site clinics can reduce medical-loss ratios and claims costs over time. The presenters said Sun Prairie and Middleton-Cross Plains had reported lower claims or direct savings after implementing clinics, and Sun Prairie's wellness coordinator told staff the clinic there saved about $450,000 per year.
Board members asked about guarantees. Administrators said no contract with Dean SSM would guarantee a fixed reduction in the district's overall insurance premiums, but the district would gain negotiating leverage at renewal time by showing clinic utilization and avoided claims.
The board approved the fiscal-year 2025 proposed budget amendment, moving $800,000 into Fund 39 as the recommended capital source for the clinic. The motion to approve the amendment was moved by Joe Haynes and seconded by Christopher Peguero; the board signified approval with "aye." Later in the meeting the board voted to preapprove step increases (the annual, contract-based step amounts built into the 2025-26 budget) for multiple employee groups; the motion to preapprove those increases was moved by Corby and seconded by Christopher and was approved by voice vote.
Administrators said additional approvals remain: the board will need to approve a final construction contract and the operational contract with Dean SSM Health before the clinic opens. District staff estimated a realistic target of fall for an initial opening but said final schedule depends on permitting, site selection and contracting.
No final contract was signed at the meeting. The board's budget amendment establishes the capital funding path and affirmed the district will continue negotiations and include board approval steps for the construction and service contracts.
