Focus Area: Exceptional Services
Staff Contact: Erin Vader/Leslie Fortney
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title:
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Consideration of option to renew the Marathon Health agreement for onsite clinic services for up to two one-year terms, including the addition of two no-cost services outlined in the addendum.
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recommended motion:
Move to authorize staff to proceed with the option to renew the Marathon Health agreement for onsite clinic services for up to two one-year terms, including the two no-cost services outlined in the addendum.
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Summary:
The City of Olathe has invested in a comprehensive and proactive approach to employee wellbeing. A central component of the City’s strategy is the on-site Wellbeing Center administered by Marathon Health. The Wellbeing Center provides accessible, high-quality primary care, preventive services, chronic condition management, and care coordination support for covered members. This model enhances access to care and supports earlier identification and intervention for emerging health risks. It also supports the important work of cost management for the City’s self-funded employee medical plan.
Monthly reviews of performance data help the City monitor service trends and progress toward long-term outcomes for the Wellbeing Center and its members. After reviewing the 2025 medical claims data and Marathon utilization, it was determined that City medical plan participants who engage in their care through the Wellbeing Center save the City’s medical plan an average of $3,524 per year. This is an increase of more than $1,500 per engaged member from 2024’s claim experience and utilization data.
Through the strategic addition of key services, such as on-site physical therapy, it is expected that the Wellbeing Center’s services will continue to find cost savings to the health plan during a time where national health care cost trends are rapidly escalating.
In addition, through the City’s ongoing evaluation of the Wellbeing Center’s utilization data, including member and provider feedback, the need for additional administrative and provider support was identified. To address the growing service demands at the clinic, the City’s healthcare broker, Lockton, was able to negotiate the addition of two services for no additional cost (approximate value of $24,000 per year).
The proposed contract addendum incorporates:
1. Call center support to enhance patient experience and create additional bandwidth for the Medical Assistant at the Wellbeing Center.
2. RubiconMD provider support, which allows provider-to-provider interaction and second opinions resulting in faster care and reduced specialist referrals.
The current agreement with Marathon Health included an initial three (3) year term beginning 1/1/2024, followed by two (2) one-year renewals. The initial three-year term will expire at the end of 2026.
Staff recommends the following:
Authorize staff to proceed with the option to renew the Marathon Health agreement for onsite clinic services for up to two one-year terms, including the two no-cost services outlined in the addendum.
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Financial Information:
2027 proposed fees: $885,637.81 (5% increase over 2026 fees)
2028 proposed fees: $929,919.71 (5% increase over 2027 fees)
Adequate funds are contained in the City’s Risk Management Fund.
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Attachment(s):
A. City of Olathe (Addendum 7) (5-7-2026)