HomeMy WebLinkAbout29. 21-495SEPTEMBER 28, 2021 21-495 RESOLUTION
(CARRIED___6-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE VENDOR AGREEMENT WITH PREMISE HEALTH FOR
THE PROVISION OF EMPLOYEE HEALTH CLINIC SERVICES AT
THREE WAVES HEALTH CLINIC & WELLNESS CENTER
INITIATED BY: ADMINISTRATIVE SERVICES
WHEREAS, the City of Oshkosh, Winnebago County, and the Oshkosh Area
School District have entered into an Intergovernmental Agreement to cooperate in the
provision of health and wellness services for members of their health plans through the
operation of an employee health and wellness clinic; and
WHEREAS, representatives of the City, County, and School District have explored
the various options for the provision of these services, and recommend that the City,
County, and School District establish a relationship and agreement with Premise Health,
for the provision of the Employee Health Clinic Services.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the said proposal with Premise Health for the provision of Employee Clinic
Services is hereby accepted and the proper City officials are hereby authorized to execute
and deliver an appropriate agreement for services.
BE IT FURTHER RESOLVED that the money for this purpose is hereby
appropriated from:
Acct. No. 601-0903-XXXX-XXXXX Internal Service Benefit Fund
TO: Honorable Mayor and Members of the Common Council
FROM: John Fitzpatrick, Assistant City Manager/Director of Administrative Services
DATE: September 28, 2021
RE: Vendor Agreement with Premise Health for the provision of employee health
clinic services at Three Waves Health Clinic & Wellness Center
BACKGROUND
For the past seven years, the City of Oshkosh, Winnebago County, and the Oshkosh Area School
District have partnered through an Intergovernmental Agreement to cooperate in the provision
of health and wellness services for members of their health plans through the operation Three
Waves Health Clinic & Wellness Center, an employer based clinic.
ANALYSIS
In advance of the expiration of our service agreement ending after 2021, staff representatives of
the City, County, and School District conducted a request for proposals (RFP) to explore various
options for the provision of employee health clinic services. As a result of the RFP, the partners
unanimously selected Premise Health as our new collective vendor. Premise has a considerable
amount of experience partnering with employers for employee health services. They are the
largest direct primary care, pharmacy, and occupational health provider in the United States
with integrated in-person and digital touchpoints for members. Over 200 clinics have been
transitioned from other providers to Premise since their inception.
FISCAL IMPACT
The fiscal impact to the City will depend on a number of factors, including the service provided
at the clinic and usage of the clinic by City health plan members, but the average cost is estimated
to be in the range of $340,000 to $400,000 per year. These costs are included in the budget for the
self-insured health plan, and expected to reduce overall claims expense by a greater amount
than the clinic costs. For the City of Oshkosh specifically, the stability of the clinic has enabled
the city to explore several health insurance options since its inception, providing substantial
savings. Additionally, City return on investment (ROI) savings for the clinic over this time
period has also been substantial. In 2020 alone, the clinic realized approximately $98,983 in
savings for the City. We expect with the new vendor to have similar ROI and potentially
improve direct funded ROI as we transition back to a self-funded model for our health insurance
programming.
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RECOMMENDATION
Through the support of the City Council, this intergovernmental initiative has not only
benefitted the employees, organization and the taxpayers of the City of Oshkosh, but also the
employees, organizations and taxpayers of the Oshkosh Area School District, as well as those of
Winnebago County. Based on the analysis conducted, staff recommends establishing a three
year agreement with Premise Health for the provision of employee health clinic services at Three
Waves Health Clinic & Wellness Center beginning in 2022.
It is my understanding that the Oshkosh Area School District and Winnebago County are
currently in the process of establishing their agreements with Premise Health, as well. Please let
me know if you have any questions regarding this matter and thank you for your support with
this initiative and your consideration.
Respectfully Submitted, Approved:
John M. Fitzpatrick Mark A. Rohloff
Assistant City Manager / City Manager
Director of Administrative Services