News From Terre Haute, Indiana

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March 9, 2010

School Board has questions it wants answered about onsite medical clinic

TERRE HAUTE — Vigo County School Board members still have many questions they want answered before they approve an onsite medical clinic, aimed at reducing the school district’s health care costs.

In an effort to answer those questions, Superintendent Dan Tanoos plans to form a committee that will include members of the benefits committee and some school board members.

“The board has a lot of questions, and the board will be the one that has to adopt this,” Tanoos said after the meeting. “They need to be the ones to have full buy-in.”

The board had questions related to such issues as hours, possible providers and services offered.

The benefits committee had recommended moving forward with the clinic and using Terre Haute-based Wellness for Life, headed up by Dr. Kayur Patel.

Two vendors, including Wellness for Life, responded to an initial request for information. Later, six vendors responded to a request for proposals, including UAP Clinic; Regional Hospital; and Providence Medical Group.

Board member Jackie Lower suggested that the process be reopened because the benefits committee only met with Wellness for Life and not the other vendors.

Board member Mel Burks said “the concept sounds beautiful,” but more specifics are needed.

After the meeting, Mary Fazekas, director of physician rercruitment and business development for UAP Clinic, said the clinic “has submitted a proposal and would welcome the opportunity to be involved in working with the school corporation on an onsite clinic.”

In November, the board authorized the district and benefits committee to further investigate the idea of an onsite medical clinic.

John Orr, director of human resources, and some School Board members visited such a clinic at Brownsburg Community School Corp.

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, and their dependents, could use the clinic at no cost. It would be for primary care — colds, flu, sore throat, fever and for maintenance/education of asthma and diabetes. It would offer preventive care, including wellness testing and physicals.

Generic drugs would be dispensed and no controlled substance drugs would be available. It would offer “fast, easy access” with 20-minute appointments pre-scheduled. 

Participation would be voluntary.

The cost of the clinic would be taken from the current insurance plan’s reserve fund. The goal is to offset the clinic costs by having less cost in the district health insurance plan.

The ultimate goal is to reduce premiums paid to Anthem, which would mean savings in the general fund.

Paul Biltimier, school district benefits consultant, said the onsite clinic concept works “in front of” the existing insurance plan. It does not take the place of existing relationships between employees/dependents and their primary care/specialist doctors.

The long term goal is to have less cost and a healthier employee/dependent population by decreasing the number of health care services they need as preventive education helps them live healthier lifestyles, Biltimier said.

Board member Tom Thomas asked if use of an onsite clinic would jeopardize revenue to other health providers in the community.

Orr said that potential exists because the goal is to save money and not use Anthem coverage where services can be provided by the onsite clinic.

But an onsite clinic could also mean more patients going to the community’s other health care providers. The onsite clinic may refer people with chronic health problems who aren’t currently seeing a doctor, Orr said.

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 operates the clinic for the school district, which would set the hours and have say-so regarding what physician is selected.

Those staffing the clinic would not be school district employees, and “there will be no liability” for the school district,” Orr has told the School Board.

No general fund money would be used, Orr has said.

Board president Paul Lockhart anticipates the administration will provide a recommendation at an upcoming meeting.

Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.

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