Pueblo council hears plan for city employee clinic with Crossover Health; contract slated for Nov. 10

PUEBLO, Colo. ' City officials presented a plan on Monday for a city-run employee health clinic operated by Crossover Health that staff say would be funded from the city's self-insurance reserves and could begin operating in 2026.

Marissa Vacheco, the city's director of human resources, told the council the project grew out of multi-year feasibility work and an RFP process that identified Crossover as the selected provider. Crossover representatives described a clinic based in the Dittmer Building's first floor offering primary and urgent care, occupational medicine and virtual messaging for employees and eligible dependents.

Why it matters: Staff said the clinic is part of a long-term cost-control strategy aimed at reducing claims and lost work time. "Not 1 new dollar is being requested," Vacheco said, describing a plan to pay annual clinic costs from the health insurance fund reserve rather than the general fund.

City and vendor figures: Presenters said the health insurance fund receives roughly $14.5 million a year in premiums and paid about $13.8 million in claims in 2024; they said the fund currently holds about $6.5 million in reserves that staff propose to use for clinic services. Crossover account executive Keith Jamtas said projected annual operating costs are about $900,000 and that the vendor's model can reduce per-member costs and lower ER visits. Jamtas told the council the city could expect "in excess of $1,000,000" in savings within the first five years.

Services and operations: Crossover associate account principal Carly Domeseth said the on-site clinic would emphasize prevention and same-day access, with an intended staffing baseline of roughly three full-time positions (a nurse practitioner and medical assistant plus support), routine business-hours coverage (approximately 8 a.m. to 5 p.m., Monday through Friday) and virtual care options for employees who live farther from Pueblo. The vendor described a cost-plus contract structure in which salaries, benefits and supplies are passed through and Crossover takes a management fee in the 7—10% range.

Questions from councilors focused on reserve minimums, adoption rates and program risk. A Hub actuarial representative on the line said there is no legally required reserve amount but that actuaries use conservative standards when advising the city. Crossover described typical first-year penetration at about 20% with further growth expected through outreach and engagement.

Next steps: Staff will bring a resolution to approve a contract with Crossover Health to the council on Nov. 10. If council approves the contract, staff said the aim is to equip and staff the clinic for a 2026 launch.

What remains unresolved: Councilors pressed staff about contingency plans if utilization falls short of projections, potential expansions for mental-health services, and whether a premium holiday or other one-time employee benefit would be preferable to a long-term clinic investment. Staff said a premium holiday would be a one-time measure and that the clinic is intended as a long-term cost-control strategy.

The council did not vote Monday; the formal contract resolution is scheduled for the Nov. 10 meeting.