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Pueblo to consider city-run employee health clinic; council scheduled Nov. 10 vote on contract
Summary
City staff and Crossover Health presented a plan to open an on-site primary care clinic for city employees, to be paid from the city’s self-insurance reserves. Council was told the clinic would cost about $900,000 annually and could reduce health-plan spending over five years; a contract resolution is scheduled for Nov. 10.
Marissa Vacheco, the city’s director of human resources, told the Pueblo City Council on Oct. 6 that the city has selected Crossover Health to operate an on-site employee clinic and that council would see a contract resolution on Nov. 10.
Vacheco said the city funds its health insurance from a self-insurance fund “to a tune of about 14 and a half million dollars per year” and that the fund held roughly $6.5 million in reserves that may be used for benefit-plan functions. She said the proposed clinic would be paid from those reserves and estimated direct operating costs at “about $900,000 a year.”
The nut of the administration’s case was cost control: Vacheco said clinic services would not generate claims on the city’s health plan and therefore should lower plan utilization and unit costs. She said the city’s employee survey showed demand — “92% of survey participants stated they would be likely to use on-site health services” — and that the clinic would focus on primary, urgent and occupational medicine.
Keith Jamtoss, an account executive with Crossover Health, described the company’s on‑site clinic model, which includes in‑person and virtual care, basic lab services and a small on‑site pharmacy. Crossover said it typically staffs an on-site clinic with an NP and medical assistant plus virtual-team support and care navigation to coordinate specialty referrals. The vendor told council it can offer same‑day appointments and 60‑minute annual visits to emphasize prevention and care management rather than fee‑for‑service volume.
Council members pressed on contract structure, risk and expected return. Vacheco said the clinic would also perform city post‑offer physicals, drug screening and fitness‑for‑duty exams, shifting about $56,000 annually from the general fund into clinic services. She and Crossover estimated the city could see more than $1 million in health‑plan savings in the first five years; Crossover staff said their models show a Crossover member typically costs about 30% less than a non‑member.
Councilors asked about governance, hours, staffing and the reserves that would fund the service. Crossover said the initial model for Pueblo would operate standard business hours Monday–Friday with three full‑time on‑site staff (a nurse practitioner and two supporting staff) and virtual coverage for after‑hours issues; the company said hours and services could be adjusted over time. HUB International, the city’s benefits broker and consultant, was on the line and told council there is no legally required reserve amount; HUB said it follows actuarial standards and had recommended the city retain a conservative reserve level before authorizing the clinic funds.
No final action was taken at the Oct. 6 meeting. Vacheco told council the administration will present a contract resolution for Crossover Health on the Nov. 10 council agenda; the council will vote at that later meeting whether to approve the contract.
If approved, city staff said the Dittmer Building’s first floor would be converted for clinic use with minimal changes and the clinic could launch in 2026. Proponents said the clinic would improve employee access to primary care, reduce use of emergency departments for nonurgent complaints and free up community primary‑care appointment capacity, while the city expects long‑term health‑plan savings and improved workforce productivity.
