TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Interlocal Agreement Between Charlotte County and City of North Port Relating to the Sharing of Employee Health Centers.
Recommended Action
Option 1: Approve the Interlocal Agreement Between Charlotte County and City of North Port relating to the Sharing of Employee Health Centers.
City Commission Options
Option 1: Approve the Interlocal Agreement between Charlotte County and City of North Port relating to the Sharing of Employee Health Centers.
• Pros: Approving this Interlocal Agreement provides employees with expanded access to high-quality, convenient healthcare through two established Health Centers, as well as an additional location to be opened by the City of North Port. This shared model enhances service availability and flexibility, while also granting access to onsite pharmacy services offering both generic and specialty medications. Increased access to timely medical care supports early intervention; improves overall health outcomes; and helps reduce the likelihood of catastrophic illnesses. The proximity and efficiency of these services also minimize time away from work, promoting productivity and employee well-being.
This partnership builds on the proven success of the Charlotte County Health Center since 2009, which not only stabilized healthcare delivery, but also helped employees maintain consistent health insurance costs. Charlotte County employees have not experienced an increase in their insurance premiums since 2006. By leveraging a similar model, this Agreement is expected to provide comparable financial and healthcare benefits, ensuring long-term value for both the organization and its employees.
• Cons: Not approving this Interlocal Agreement eliminates the opportunity to partner with Charlotte County and leverage shared healthcare resources, including access to established Health Centers and onsite pharmacy services. Without this option, the employees will continue using more expensive healthcare services. This can contribute to ongoing increases in insurance premiums, placing a greater financial burden on both the organization and its employees. Additionally, limited access to convenient, preventive care may lead to delayed treatment, increased time away from work, and a higher likelihood of more serious or catastrophic health conditions, ultimately driving long-term healthcare costs even higher.
Option 2: Deny the Interlocal Agreement between Charlotte County and City of North Port Relating to the Sharing of Employee Health Centers.
• Pros: Denying the Interlocal Agreement avoids the upfront costs of developing a healthcare facility, as well as the ongoing administrative expenses associated with managing and operating a Health Center. This allows the City to preserve financial resources and avoid taking on additional operational responsibilities. However, choosing not to partner with Charlotte County also means forgoing access to shared healthcare resources, including established Health Centers and onsite pharmacy services. As a result, employees may continue relying on more expensive healthcare options, which can contribute to rising insurance premiums and increased financial pressure on both the City and its employees. Limited access to convenient preventive care may also lead to delayed treatment; increased absenteeism; and a greater risk of serious health conditions over time, potentially driving long-term healthcare costs even higher.
• Cons: Denying the Interlocal Agreement means losing the opportunity to partner with Charlotte County and utilize shared healthcare resources, including established Health Centers and a fully licensed specialty drug pharmacy. Without this partnership, the City and its employees may continue facing rising insurance premiums and increasing healthcare costs due to greater reliance on higher-cost services such as urgent care, emergency rooms, and specialist visits; for routine care. Employees would also lose access to convenient and cost-effective preventive care, wellness services; and specialized pharmacy support that could improve medication management and reduce prescription costs. As a result, delayed treatment; barriers to care; increased absenteeism; reduced productivity; and a higher risk of chronic or serious health conditions may occur; ultimately limiting long-term healthcare cost savings and impacting employee satisfaction and retention.
Background Information
During the City Commission Special Meeting held on July 25, 2024, a presentation was provided by Shawn Fleming, Vice-President and Senior Benefits Consultant, Gehring Group and Gordon Burger, Director of Budget and Administrative Services, Charlotte County. The presentation outlined the potential benefits of establishing an Employee Health Center, including opportunities for health insurance premium savings through better management of rising healthcare and pharmacy costs. They also highlighted Charlotte County’s successful Health Center model and the advantages of partnering to share access to established facilities.
The proposed partnership is also expected to enhance and reduce costs associated with the City’s Workers’ Compensation Program by providing employees with quicker access to coordinated medical care and treatment services. Additional cost savings may be realized through the use of the Health Center for pre-employment physicals and pre-employment drug screenings for new hires, as well as more cost-effective random drug testing services required for Commercial Driver License (CDL) compliance. These services would help streamline occupational health processes; improve efficiency; and reduce expenses currently incurred through outside providers.
Following the presentation, a motion was made by Commissioner Langdon to, “Instruct the City Manager to work with staff to develop preliminary plans for creating and implementing a Health Center for City of North Port employees.” The motion was seconded by Commissioner McDowell and passed unanimously (5-0).
As a condition of the proposed partnership, the City of North Port would establish a Health Center within the City that would be shared with Charlotte County, in addition to providing City employees with access to the County’s existing facilities. This collaborative model is intended to help reduce the impact of annual health insurance renewals on the City while working to stabilize premium costs paid by employees through improved access to cost-effective, high-quality care.
The Interlocal Agreement between Charlotte County and City of North Port relating to the sharing of Employee Health Centers has been reviewed by the City Attorney and is legally correct as to form.
The Interlocal Agreement between Charlotte County and City of North Port relating to the sharing of Employee Health Centers will be provided to the City Clerk’s Office prior to June 9, 2026, City Commission Regular Meeting, for signature, subject to City Commission approval.
Strategic Plan Pillar
Good Governance
Financial Impact
The Interlocal Agreement has no direct financial impact to the City, as all operations will be managed under a separate third-party Administrative Services Agreement. The Interlocal Agreement will allow City employees to utilize the Employee Health Center in North Port as well as the Employee Health Center in Charlotte County. Providing employees with this expanded access will give them incentive to utilize the Employee Health Centers rather than choosing to go to a higher cost healthcare facility for services which ultimately may provide additional savings to the City.
Procurement
The Interlocal Agreement is in accordance with Chapter 2 Administration Article VIII Procurement, Section 2-403 Exemptions (a)(2) Procurement Contracts between City and nonprofit organizations, other governments, or other public entities in accordance with the City of North Port Procurement Code.
Attachments:
1. Interlocal Agreement
Prepared by: Sandy Knowles, Assistant Director of Human Resources and Risk Management
Department Director: Christine V. McDade, PHR, SHRM-CP, Director of Human Resources