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Contract Renewal - Direct Primary Care Services Provider
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INFORMATION CONTACT:
Julie Broome, Human Resources, Director, 704-283-3869
ACTION REQUESTED:
Authorize the County Manager to 1) negotiate and execute an agreement substantially consistent with this agenda item, 2) exercise any renewal or extension term options set forth in the Agreement, and 3) terminate the Agreement if deemed in the best interest of the County, each in the County Manager's discretion.
PRIOR BOARD ACTIONS:
1) March 2, 2015, Regular Meeting- BOCC approved initial three-year agreement with Paladina Health.
2) February 19, 2018, Regular Meeting, Agenda Item #19 - BOCC approved three-year renewal.
3) July 19, 2021, Regular Meeting, Agenda Item #16 - BOCC approved three-year renewal, assignment to Everside Health.
BACKGROUND:
Union County provides Employee and Retiree Group Health Benefits Plan(s) to more than 2,500 eligible participants. These are self-funded plans and as such the County has implemented plans, designs, and effective administrative tools that enable the most cost-effective use of each premium dollar while maintaining both the viability and sustainability of the Plan(s). Staff explored cost effective options for primary care service delivery due to growing concerns over the rising cost of primary care and ancillary services, limitations on appointment availability for immediate, non-critical healthcare needs, the trending shortage of primary care physicians, and the continuing negative financial impact of the Affordable Care Act (ACA) on self-funded employer group plan(s). Since being selected as the direct primary care option provider through the RFP process, Paladina Health, now known as Everside Health, has become a partner in providing comprehensive, integrated Primary Care services to eligible participants who have voluntarily enrolled in the direct primary care option since 2015. Today 54% of the total eligible participants in our health benefit plan(s) have voluntarily enrolled in the popular Direct Primary Care option. The current Everside Health clinic in Monroe currently serves Union County employees only and provides a stable, responsive, and highly customer-focused primary care experience for our employees. Staff recommends renewal of this agreement for an additional three-year term.
The Human Resources Department has utilized the contractual services of Everside Health (formerly known as Paladina Health) for providing direct primary care services since March, 2015. The contractor has been effective and efficient in meeting our service needs, and we are requesting to continue this service for an additional three (3) years, subject to annual budget appropriation.
FINANCIAL IMPACT:
The anticipated annual cost for this service is $1,833,333. Since this contract contains a three-year term, a total of $5,500,000 is estimated to be spent. Funding is available in the adopted FY24 budget with future expenditures subject to annual BOCC budget appropriation.