Recommendation Concerning Contract Award for Onsite Employee Health Clinic Administration - Jana Still, Director, Human Resources through Paul Nobles, Purchasing Manager, Office of Purchasing
That the Board take the following action:
A. Approve and authorize the County Administrator to sign the Agreement between Escambia County and Marathon Health, LLC (Marathon), per the terms and conditions of PD 19-20.035, Onsite Employee Health Clinic Administration, for an annual fee of $1,026,676.95; and
| Vendor/Contractor |
Funding |
Amount |
Contract Number |
| Marathon Health, LLC |
Fund 501, Cost Center 150112, Object
Code 53101 |
$1,026,676.95 |
PD
19-20.035 |
B. Approve an extension with the current Escambia County employee health clinic (Clinic) vendor, Concentra, until September 30, 2020, in order to provide adequate time for the transition from Concentra to Marathon.
AGREEMENT TO BE DISTRIBUTED UNDER SEPARATE COVER. |
The Clinic was created in January 2011. The Clinic provides urgent and primary care, as well as all new hire and required annual physicals for approximately 2,000 employees and their dependents who are enrolled in the County’s health care benefits. The Escambia County Sheriff’s Office (Sheriff) currently has 647 employees and their dependents using the Clinic.
Concentra Health Services, Inc. (Concentra) was initially awarded an Agreement with a three-year term and multiple extensions. In August of 2016, Concentra was awarded a two-year Agreement with two optional one-year extensions. The current Agreement with Concentra will expire July 31, 2020.
Due to the impending Contract expiration with Concentra, staff explored options for procuring a Clinic administrator. The City of Pensacola (City) expressed interest in participating in the Clinic for its 750 employees and their dependents, ultimately joining with the County and Sheriff to procure a Clinic administrator in the form of an Invitation to Negotiate (ITN).
As part of the ITN, the County explored opportunities for the Clinic to provide expanded services designed to mitigate future claims, to manage costs, and provide services beyond the walls of the Clinic. Furthermore, with the addition of City employees to the eligible Clinic participants, the County and Sheriff’s teams ensured considerations were made for the impact of additional members on clinic staffing and utilization.
A selection committee comprised of two representatives from the County, one representative from the Sheriff, and one representative from the City was charged with evaluating and ranking the firms. After completion of the ITN process, which is described in further detail below, Marathon was ranked number one by the selection committee.
Marathon has been in the on-site clinic business for over 15 years with 830 full time employees dedicated to on-site clinics. Marathon has over 200 primary care clinics, operating 20 clinics in the state of Florida. Marathon demonstrated its experience in providing cost effective care options, high patient satisfaction, robust reporting, and other performance metrics that are important to the County.
Marathon’s distinct value proposition derives from their focus on population health risk management, including primary / acute care, health screenings, health coaching, and chronic condition management services. Through this approach, Marathon’s objective is to change the way businesses and their employees experience healthcare. As a result, Marathon will reduce health and productivity costs, control healthcare spend sustainably, improve the overall health status of the workforce, promote greater adherence to evidence-based medicine, and influence the way employees perceive and receive their healthcare. Marathon provides a comprehensive reporting package that includes monthly and annual reports showing: participation levels, encounters, diagnoses, prescriptions written and medications dispensed, value of care delivered, employees with chronic conditions at standard of care, employees with health risk and/or pre-disease, employees who have made progress toward health goals, excess cost associated with the risk profile, savings associated with change to the risk profile, and healthcare costs for engaged vs. non-engaged individuals.
In conjunction with representatives from the Sheriff and City, and County staff coordinated with USI Insurances Services LLC, the brokerage firm that provides consultation for the County’s benefits, to develop a comprehensive scope of services that focuses on wellness and behavioral health for the onsite Clinic.
An ITN, PD 19-20.035, Onsite Employee Health Clinic Administration, was publicly noticed on March 16, 2020, to 26 firms. On March 25, 2020, a mandatory pre-proposal conference was held on-line due to COVID-19 with 29 attendees. Five firms submitted responses on April 15, 2020. Interviews with all five firms were held on May 5th and 6th. The proposers were evaluated by importance on the attached scope of services and the following factors listed below:
Medical Management (Case Management)
Technology (EMR, Associated Portal)
Reporting
Pricing
Corporate Culture
Marketing/Communications
Coaching
Wellness Tracking Challenges
Account Management/Customer Service
Compliance
The Committee met on May 13, 2020, for an evaluation meeting to rank the firms. The rankings are as follows:
- Marathon Health, LLC
- CareATC, Inc.
- Concentra Health Services, Inc.
- Quad/Med, LLC
- Care Here, LLC
As the number one ranked firm, negotiations were held with Marathon on May 26th and 28th. These negotiations resulted in the development of a three-year Agreement with the option to have two one-year extensions. Though the Clinic will serve all three entities, the Sheriff and City have independently negotiated their agreements with Marathon.
The distribution of cost was determined by the number of budgeted positions for each entity. The County has the largest employee base and includes the Clerk of the Court’s Office, Property Appraiser, Supervisor of Elections, Tax Collector, Santa Rosa Island Authority, and Housing Finance Authority.
| Employee Clinic Cost Proration |
|
| |
|
|
|
| |
Budgeted |
Prorated |
Clinic Cost |
| |
Employees |
% |
$1,659,560.00 |
| County* |
2409 |
61.86% |
$1,026,676.95 |
| Sheriff |
693 |
17.80% |
$295,345.42 |
| City |
792 |
20.34% |
$337,537.63 |
| Total |
3894 |
|
$1,659,560.00 |
*County reflects $73 Scrivener's error in cost.
|