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Pueblo staff seek council OK to pursue on-site employee clinic; two vendors finalists
Summary
City staff and benefits consultants told council they have two finalists for an on-site clinic for employees and dependents. The plan would be funded from the city’s benefits fund and aims to reduce health-care costs for the self-funded plan.
City staff and the city’s benefits consultant presented an overview of a proposed on-site wellness clinic for employees and their covered dependents at the April 14 City Council meeting, identifying two finalists and asking council for direction as pricing and best-and-final offers are finalized.
Danny Talley, a lead consultant with Hub International, said the on-site clinic would be available to all members of the city’s self-funded medical plan and would focus on preventive and chronic-disease management, primary and urgent care and limited occupational health services. “We’ve been working with the HR team and the mayor and going through exploration on what this would look like,” Talley said.
Why it matters: City staff said the benefits fund—not the general fund—would pay start-up and operating costs. Talley said the benefits reserve exceeds $6,000,000 and that the city’s self-insurance model has built that reserve over several years. Staff said the expectation is that directing primary and some urgent care into a capitated clinic will reduce claims paid in commercial markets over time.
Vendors and next steps: The city received five proposals and narrowed the field to two finalists—Crossover Health and Premise Health. Staff reported they had visited clinics operated by both finalists, had asked for best-and-final pricing and expected those bids by the end of the month. They estimated a six-month minimum ramp-up after a vendor selection and said it could take up to a year.
Facility and utilization: Presenters said the clinic could be located on an existing floor of the Dittmer Building, a city facility with medical office space; staff estimated the eligible population at about 1,800 covered members (employees, spouses and dependents). Consultants said the clinic operator would be a private vendor and clinicians would not be city employees.
Council questions and concerns: Council members asked about annual operating cost estimates, whether the benefits reserve must be recalculated after start-up costs, co-pay policy for users and how the city would encourage utilization. Staff said detailed cost proposals were pending and that the consultants would provide the bids and analysis before any final commitment. Several council members suggested union engagement, asked about integration with workers’ compensation and mental-health services, and urged prompt delivery of pricing data.
Ending: Staff said they will provide council with best-and-final pricing once received and follow up with additional details before the council makes any contractual commitment.
