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HomeMy WebLinkAboutDOC Clinic Memo TO: BOARD OF COMMISSIONERS FROM: DAVE INBODY & RONDA CONNOR SUBJECT: ON-SITE EMPLOYEE HEALTH CLINIC DATE: 8/31/2012 CC: ERIK KROPP Background on Deschutes Onsite Clinic (DOC) On February 3, 2011, the Deschutes Onsite Clinic (DOC) began providing health care for County employees and their families at no cost. Instead of relying on the fee-for-service model for delivery of health care services, an organization was contracted to operate the DOC for a monthly administrative fee with all other costs being passed through to the County. The notion is that such a model allows the County to save the health benefits plan expenses provided an adequate number of patients are seen at the DOC. Since the costs are fixed, the more patients seen at the DOC, the more savings are incurred by the DOC. Healthstat, Inc., based out of Charlotte, North Carolina, was selected to operate the DOC. The primary reasons the selection committee gave for selecting Healthstat to operate the DOC were their experience with clinics similar to the model Deschutes County had in mind and their having established clinics for other city and county governments. A two- year contract was signed with Healthstat. Initial estimates indicated that Deschutes County could feasibly breakeven within the first year and experience annual savings of at least $250,000. The DOC actually broke even in eight months and, saved the County $534,415 in the first 18 months. Employees saved $258,583 during the same time period. The DOC had 7,399 office visits, conducted 4,228 labs and wrote 6,615 prescriptions, 2,569 of which were filled at the DOC’s pharmaceutical dispensary in the first 18 months. The DOC saw 1,399 different patients at least once, representing about half of all covered lives on the health benefits plan, and about 70% of all employees. 2012 RFP Process With the Healthstat contract expiring on December 31, 2012, an RFP process was initiated in June 2012 for operation of the DOC. Although the County had the option to extend the existing contract with Healthstat, it was believed to be in the best interest of the County to compare the current fees and service delivery to other vendors in the field. Eight proposals were received in response to the RFP. A committee was formed to review the proposals and provide a recommendation to the Board of Commissioners for approval. The committee consisted of the following members: 2 Ronda Connor – Health Benefits Coordinator, responsible for overseeing the DOC Dave Inbody – Assistant to the County Administrator, responsible for overseeing the DOC Erik Kropp – Deputy County Administrator Timm Schimke – Director of Solid Waste and Employee Benefits Advisory Committee Chair Kate Moore – Program Manager in Health Services Department and Registered Nurse Therese Madrigal – County Wellness Coordinator Jennifer Floyd – Senior Web Applications Developer in the Information Technology Department and member of the Employee Benefits Advisory Committee Kelly Elzner – Employee of Central Oregon Intergovernmental Council After reviewing the proposals, the committee selected five vendors to make presentations. Through this process, two additional vendors were eliminated. The remaining vendors were Medcor of Chicago, CareHere of Nashville and Healthstat. Medcor and CareHere were provided follow-up questions, current and former clients were contacted, conference calls were scheduled and site visits were made to examine each vendor in greater detail. This resulted in Medcor being selected unanimously to operate the DOC. Some of the reasons identified by the committee for selecting Medcor were the commitment they placed on building a strong relationship with the County, a clear explanation of the services they can and cannot provide, an understanding of the County’s vision for the DOC, and the consistent and attentive service provided to their current clients. Transition Plan During the next three months, the County will work closely with both Healthstat and Medcor to transition operation of the DOC. Medcor provided a detailed transition plan as part of their proposal (attached). Through the RFP process, the committee identified several components of the transition that will be critical to its success. Continuity with staff, hours of operation and services provided will be imperative to ensure employees’ health care needs are still being met. A transfer of electronic medical records will also be necessary. Fortunately, both Healthstat and Medcor use NextGen as their EMR software, which should make the process run more smoothly. Finally, communication with employees regarding the transition will be important. Medcor will meet with departments to introduce themselves and their philosophy for operating the DOC.