Focus Area: Exceptional Services
Staff Contact: Erin Vader/Leslie Fortney
Subject: Marathon Health contract addendum to add physical therapy services
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Title:
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Consideration of Marathon Health contract addendum to add on-site physical therapy services at the Olathe Wellbeing Center.
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Summary:
Musculoskeletal concerns are the City’s second largest category of major diagnostic spend within the health plan, affecting nearly 400 members in 2023 alone. In 2023, there was a 24% increase in physical therapy spend over the prior year. Moreover, 39.3% of total prescription costs were attributed to a musculoskeletal chronic condition. On-site PT services help plan members get the musculoskeletal care they need faster and easier than the traditional healthcare system, with the benefit of integration with other services available to employees through the on-site clinic. This also drives down health plan costs while ensuring employees have faster recovery times from musculoskeletal conditions, and in many cases less time away from work for travel to other provider locations.
In Q1 2024, the City of Olathe partnered with Lockton to issue a Request for Proposal from qualifying vendors to provide on-site physical therapy services at the Olathe Wellbeing Center. Four vendors responded and all four were interviewed and evaluated. Based on scope of services and proposed budget, both Lockton and City staff recommended an award of contract to Marathon Health, Inc. to run concurrent with Marathon’s on-site health services parent contract for a more integrated and seamless care experience.
Marathon will provide the recruiting, training, and onboarding for a Physical Therapist to join the Wellbeing Center staff.
The Olathe Wellbeing Center serves over 2,400 employees, retirees and dependents with a variety of services that saves both employee time and City money. The staff have become an integral part of the health and wellness initiatives provided by the City for our employees and dependents. City staff and Marathon staff work collaboratively to foster a culture of wellness for our employees which helps us to deliver the level of service that the citizens of Olathe have come to expect.
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Financial Impact:
The additional cost for physical therapy services is $143,711 annually, paid from the Health and Dental Fund.
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Action Needed:
Approval of the request to amend the contract with Marathon Health to provide on-site physical therapy services through the Olathe Wellbeing Center.
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Attachment(s):
A. Addendum
B. Certificate of Insurance