TERRE HAUTE — A Vigo County School Corp. benefits committee plans to further investigate a possible onsite medical clinic as a way to reduce health care costs, now that the School Board has given the go-ahead.
The School Board voted 7-0 in support of continued study of the proposal. In addition, the district will set up a visit so that board members can visit a school district that has a clinic.
The proposal was discussed during Monday’s School Board meeting.
A school district-sponsored, on-site clinic would offer limited services and reduce costs in three areas: doctor office visits, prescription drugs and laboratory tests.
Employees covered by the school district’s insurance program could use the clinic, and they would save money on doctor office visits (no co-pay) and medication.
Savings are achieved in several ways.
Clinic physicians are paid an hourly rate vs. the standard fee-for-service arrangement; prescription drug and laboratory tests can be further discounted over network rates; and clinics can encourage increased generic substitution for brand name drugs.
An outside company would operate the clinic for the school district, which would set the hours and have say-so regarding what physician is selected, said John Orr, director of human services. Those staffing the clinic would not be school district employees, and “there will be no liability” for the school district, Orr told the School Board.
No general fund money would be used, Orr explained. It would be funded “solely with reserve funds we have in our health insurance reserve account.” That reserve account presently has about $4 million.
It’s estimated that the first year, an on-site medical clinic would cost about $800,000. The companies that operate the clinics usually charge an operating fee as well as a fee per employee (based on those who are members of the district’s health insurance program).
The clinics are staffed by physicians, nurse practitioners, physician assistants and/or nurses. The convenience of an on-site clinic can increase the likelihood of employees seeing a health care provider for their medical needs.
Employees set up appointments in advance, and there are no walk-ins.
RE Sutton and Associates, the school district’s benefits consulting firm, estimates that the school district could save between $1.3 million to $2 million in the first year. The higher the use, the greater the savings.
Information provided to the board also suggests it can lead to increased productivity and less absenteeism, and it can improve employee health by including a wellness component and identifying at-risk individuals.
The insurance committee solicited information from two on-site clinic vendors: WeCare TLC based in Lake Mary, Fla. and Wellness for Life based in Terre Haute.
Such a program, if it was eventually approved, would not be mandatory for school district employees.
The goal is to continue to provide quality health care, “but we’re trying to directly impact the cost of medical care,” Orr said.
Paul Biltimier, who works for RE Sutton, said the greatest savings would come in the area of prescription drugs.
Brownsburg Community School Corp. opened such a clinic in April 2008. Its business manager, Marvin T. Ward, said it’s already making a “major reduction in our medical and pharmacy claims expenditures. Our medical insurance rates recently renewed with only a 2 percent increase.”
Also, staff have been very positive about the clinic, Ward wrote.
Ward also wrote that it “is clearly one of the most positive employee benefit offerings we have ever provided.”
The Vigo County School Corp. benefits committee is expected to come back with a formal recommendation at a later date. Orr said there is no specific timeline for that, but “we want to pursue this vigorously.”
In other matters, the board voted 6-1 to advertise for bids to construct a new Booker T. Washington High School, which will move to the Terre Haute South Vigo campus. The goal is to have the new facility open by the 2010-11 school year.
The facility, which will be located north of South Vigo along Davis Avenue, would have more than 17,000 square feet of space and a capacity of about 100 alternative high school students and 60 young children. Washington serves pregnant and parenting teens.
There would be a connecting corridor to South Vigo.
The school district has set aside $2.2 million in its 2010 Capital Projects Fund plan for the facility, but Superintendent Dan Tanoos anticipates the cost will be less than that amount.
Washington Principal Karen Andrews said “it’s going to be exciting to see our students walk through the doors of that new building.”
Board President Joe Minnis voted against going to bid for the project.
Architect Steve Arnold of MMS discussed plans for the new facility.
Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.
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School board looking at onsite medical clinics
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