Submitted By: Todd Swanson
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Presentation By: Todd Swanson
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Department: Human Resources and Risk Management
FORMAL TITLE:
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Five-year agreement with Premise Health Employer Solutions, LLC, for management and operation of the City of Ocala Employee Health Clinic, with Fiscal Year 2026-27 expenditures not to exceed $1,876,566
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City of Ocala is self-insured for employee medical and prescription drug benefits and provides an employee health clinic for eligible employees, retirees, spouses, and dependents. The clinic provides primary and preventive care, management of acute and chronic conditions, laboratory and pharmaceutical services, health risk assessments, occupational health services, workers' compensation treatment, and required employment and public safety medical examinations.
The City issued Request for Proposals No. HUM/260527 for Employee Health Clinic Services and Administration. The solicitation provided for an initial five-year contract beginning October 1, 2026, with two optional five-year renewal terms. The scope included comprehensive management and staffing of the City's existing clinic and required a physician dedicated to the clinic for at least 20 hours per week.
Eight firms responded to the solicitation and three firms were selected to advance to the final evaluation. Premise Health received the highest overall score of 95.0, followed by Concentra Medical Centers at 93.2 and CareATC, Inc. at 90.4. Based on the final evaluation and scoring, Premise Health was selected to be awarded the contract.
FINDINGS AND CONCLUSIONS:
The proposed five-year agreement with Premise Health will continue comprehensive primary, preventive, occupational, and pharmaceutical health services through the City's employee health clinic.
The selected cost-plus model includes a physician dedicated to the clinic for 20 hours per week and provides transparency into the clinic's actual operating costs. Consistent with the RFP, supplies, equipment, and medications are billed as pass-through expenses without additional markup.
The agreement provides continuity of clinic operations and care while allowing the City to continue evaluating utilization, health outcomes, operating costs, and the clinic's impact on the City's self-funded health plan.
Staff recommends approval.
FISCAL IMPACT:
Expenditures for Fiscal Year 2026-27 shall not exceed $1,876,566, based on Premise Health's pricing under RFP No. HUM/260527 for the selected 20-hour physician cost-plus staffing model.
Funding is budgeted and available in the Health Insurance Fund. Funds are budgeted in account #627-015-316-512-51-34010. No budget amendment is required.
Funding for subsequent fiscal years of the five-year agreement will be subject to annual City Council appropriation through the City's budget process.
PROCUREMENT REVIEW:
Premise Health was awarded Contract No. HUM/260527 through a competitive Request for Proposals process conducted in compliance with the City's procurement policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny