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Peoria staff outline $2.7M near-site employee clinic to curb health-plan costs
Summary
City staff proposed opening a near-site clinic for employees, families and retirees to reduce health-plan claims; the city plans a $2.7M startup paid from the employee benefits trust and is finalizing a contract with Marathon Health to open in January 2027.
City staff proposed creating a near-site, whole-health clinic for employees, family members and retirees as part of the FY2027 implementation plan, saying the clinic is intended to lower claims and long-term health-plan costs.
The administration said staff selected a former dental office at 75th Avenue and Greenway Road and is finalizing a contract with Marathon Health to operate the clinic. The budget presentation described $2,700,000 in start-up costs that the city would pay from the employee benefits trust fund, above required reserves, and said the employee trust board has endorsed the plan.
"The clinic will help lower overall healthcare costs by diverting plan members from traditional healthcare providers and to the clinic," the administration said, adding that the city expects the savings to grow as employee enrollment increases. Staff said they had applied for a grant to offset equipment costs and plan to bring the Marathon Health contract and a related budget amendment to council in the next month.
Council members and staff praised the concept’s potential to reduce long-term costs and improve employee well-being. City Manager Mike Faust and other presenters emphasized that employee engagement will be critical to meeting the clinic’s financial goal: the more members use the clinic, the greater the expected savings to the city’s health plan.
If approved as described, staff expects to begin remodeling the site and to open the clinic in January 2027.
