Memorandum

City of Lawrence

Human Resources Division/City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Ryann Pem, Human Resources Specialist
CC:	Diane Stoddard, Assistant City Manager Lori Carnahan, Human Resources Manager
DATE:	October 14, 2010
RE:	Off-site Health & Wellness Clinic

I. Project/Item Description.  The City of Lawrence, Kansas would like to implement an off-site health and wellness clinic beginning around January 1, 2011.  The clinic would be open no less than 20 hours per week, and it would serve both City employees and retirees that are participating in the health care plan.  At this time, services will not be offered to spouses and dependents, but the City of Lawrence, Kansas may decide to extend clinic services to spouses and dependents in the future.  The health and wellness clinic would primarily focus on providing wellness related services.  The secondary focus of the clinic is to have the ability to provide employees and retirees with minor medical care and treatment, and write them prescriptions when needed. 

II. Project Description/History.  In 2009, the City of Lawrence’s Health Care Committee and CHAMP Wellness Committee began researching the benefits of implementing an on-site health clinic.  During this research, it was determined that engaging plan participants to use preventive health services would reduce risk to the health care plan thereby lowering or maintaining the rate of increase to claims costs.  It was also determined that the success of implementing such a clinic is based on its utilization, and it is highly recommended that participation be incentivized.

The outcomes of the research conducted were impressive, and as a result an RFP was released for on-site health and wellness clinic services.  Respondents to the RFP were all confident they would attain a 3:1 Return on Investment (ROI) if the program was properly incentivized.  The HCC/CHAMP committee was confident the ROI for implementing a health and wellness clinic in the proposed format to be 1:1.  The City of Lawrence also contacted the City of Olathe, Kansas, which has implemented a very successful on-site health and wellness clinic.  To date, the City of Olathe has seen a ROI of 3:1.

After completing the review of the RFP responses, the City of Lawrence was unable to identify a City facility in which such a clinic could be housed.  As a result, it was determined that the City of Lawrence, Kansas would hold off on implementing an on-site health and wellness clinic, and revisit the possibility of such implementation again in 2010.

In 2010, the CHAMP Wellness Committee and the Health Care Committee revisited the idea of an on-site health clinic.  Due to the lack of space, it was determined that the best solution would be to identify a company that could provide off-site health and wellness services versus on-site health and wellness services.  Likewise, the City of Lawrence would now like to release a Request for Qualifications (RFQ) to identify a company that can provide HIPAA compliant off-site health and wellness services.  The services being rendered need to be provided in a location that is convenient to City of Lawrence employees, but the clinic cannot be housed in a City of Lawrence facility.  The clinic will need to employ a Physician’s Assistant or a Nurse Practitioner, as prescription writing services will need to be rendered to employees and retirees utilizing the clinic.  The selected company will need to provide HIPAA compliant reporting and recordkeeping.   They should also be able to provide reporting software, as the selected company will administer and provide reporting for Health Risk Assessments (HRA’s) and clinic usage. 

III. Project/Purchase Status.  Upon receipt of approval from the City Commission, staff would like to release the attached Request for Qualifications (RFQ).

IV. Project/Purchase Details.  The proposed project schedule is as follows:

Task	Dates
RFQ Released	10/27/2010
Letter of Intent and Questions Due	11/3/2010
City of Lawrence will send responses to Letters of Intent and Questions	11/9/2010
RFQ's Due	11/16/2010
City of Lawrence will evaluate RFQ's	11/22/2010-11/23/2010
Finalist Interviews	11/29/2010-12/02/2010
Finalist Notified of Selection (pending City Commission Approval)	12/14/2010
Letter to Employees about Opening of Clinic	12/15/2010
Employee Meetings	01/03/2010-01/11/2010

V. Project/Item Funding.   This project will be funded through use of the City of Lawrence Health Care Fund. 

VI. Recommendation.  Staff believes that if an off-site clinic is set up properly (location, hours, privacy) and the appropriate employee incentives are in place (discounts at a level that will encourage participation) it will reduce the rate of increase of claims incurred and paid by the health care plan for both the city and employees/retirees.  A clinic of this nature will give employees and retirees the ability to access health care at no cost and at a reduced cost to the city’s health care plan.  Encouragement for a healthy lifestyle and personal reduction of health risks also allows the opportunity for the city and its employees to reduce future health care costs.

VII. Action Request.  Approve the release of the RFQ for the off-site health and wellness clinic, if appropriate.