TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve and Authorize the City Manager to Execute the Health Care Medical Services Agreement By and Between the City of North Port, Florida, and Medical Risk Solutions, LLC (d/b/a My Health Onsite, Also Known as Crowne Consulting Group) for an Employee Health Center in the Amount of $2,362,593.00.
Recommended Action
Option 1: Approve and authorize the City Manager to execute the Health Care Medical Services Agreement by and between the City of North Port, Florida, and Medical Risk Solutions, LLC (d/b/a My Health Onsite, also known as Crowne Consulting Group) for an Employee Health Center in the amount of $2,362,593.00.
City Commission Options
Option 1: Approve and authorize the City Manager to execute the Health Care Medical Services Agreement by and between the City of North Port, Florida, and Medical Risk Solutions, LLC (d/b/a My Health Onsite, also known as Crowne Consulting Group) for an Employee Health Center in the amount of $2,362,593.00.
• Pros: Opening an Employee Health Center is a fiscally responsible strategy that helps control rising healthcare costs and reduce insurance renewal increases. By providing convenient access to preventive care, early intervention, and chronic disease management, organizations can decrease high-cost claims, emergency room visits, and hospitalizations. This proactive approach lowers overall utilization of expensive services, which can positively impact claims experience and strengthen negotiating power during insurance renewals. In addition, healthier employees mean reduced absenteeism and improved productivity, delivering both immediate savings and long-term financial sustainability for the organization.
• Cons: A potential consideration when opening an Employee Health Center is the upfront investment and time needed to realize measurable savings. While the long-term financial benefits, such as reduced claims and more stable insurance renewals are strong, they may not be immediate. Success also depends on consistent employee engagement and utilization. With thoughtful planning, communication, and program design, organizations can manage these factors effectively and position the center to deliver sustainable value over time.
Option 2: Deny the Health Care Medical Services Agreement by and between the City of North Port, Florida, and Medical Risk Solutions, LLC (d/b/a My Health Onsite, also known as Crowne Consulting Group) for an Employee Health Center in the amount of $2,362,593.00.
• Pros: Not opening an Employee Health Center can save money upfront by avoiding the costs of construction build out; third party administration for staffing; and the operation of a facility. It also keeps things simpler, since the organization can rely on existing insurance plans and local healthcare providers. Additionally, it avoids the risk of low employee use, helping ensure that healthcare spending matches actual needs.
• Cons: A downside of not opening an Employee Health Center is missing an opportunity to better manage healthcare costs over time. Without dedicated convenient care, employees may rely more on higher-cost services like urgent care or emergency rooms, increasing overall claims and putting pressure on insurance renewals. This can lead to rising costs being passed on to employees through higher premiums, deductibles, or out-of-pocket expenses. In some cases, organizations may also need to scale back benefits to offset these increases, which can negatively impact employee satisfaction, access to care, and overall well-being. Additionally, without access to preventive and convenient healthcare services, organizations may experience higher absenteeism and reduced productivity, limiting both short-term cost savings and long-term financial stability.
Background Information
During the City Commission Special Meeting held on July 25, 2024, Shawn Fleming, Vice-President and Senior Benefits Consultant, for Gehring Group and Gordon Burger, Director of Budget and Administrative Services, for Charlotte County, presented the information regarding the benefits of establishing an Employee Health Center. The presentation emphasized the regional shortage of primary care physicians and the resulting challenges in obtaining timely access to care. The proposed model is intended to provide employees minimal to no-wait times and sufficient time with their physicians, thereby supporting more effective managed care and improved health outcomes.
In addition, rising healthcare and pharmacy costs continue to place significant financial pressure on both the City and its employees, prompting City leadership to explore cost-containment strategies and sustainable benefit options.
This procurement will be conducted utilizing the Sole Source procurement method, in full compliance with the Administrative Code and the established Ordinances of the City of North Port, Florida, specifically Chapter 2 - Administrative, Article VIII - Procurement, Section 2-407 - Sole Source Guidelines of the Code of the City of North Port, Florida.
A Sole Source procurement is appropriate when only one vendor or provider possesses the unique qualifications, operational infrastructure, and established regional relationships necessary to meet the City’s specific service needs, making competitive solicitation impractical or not in the best interest of the City. The Sole Source designation is appropriate when one or more of the following conditions are present:
• The provider has exclusive operational experience, proprietary methodologies, or specialized expertise not readily available through open competition.
• The pending Interlocal Agreement with a partnering governmental entity will establish a contractual framework that necessitates the use of a specific, shared-services provider; or
• The nature of the services, regional operational continuity, and demonstrated performance outcomes preclude meaningful substitution without disruption to program integrity.
In this instance, Medical Risk Solutions LLC (doing business as My Health Onsite, also known as Crowne Consulting Group) was identified as the sole qualified provider capable of meeting the City’s specialized Employee Health Center operational requirements. This determination is substantiated by the following:
• Partnering with Medical Risk Solutions, LLC, under pending Interlocal Agreement with Charlotte County, establishes a sole source provider responsible for managing operations across shared facilities. This governmental cooperative structure is a recognized and legally sound mechanism under Florida law for securing services without competitive solicitation, as the underlying agreement was competitively procured by the partnering governmental entity.
• The Sole Source selection is further supported by the proven success of Medical Risk Solutions, LLC at Charlotte County's Employee Health Centers. Documented utilization data demonstrates that every employee who accessed the Employee Health Center generated an estimated savings of approximately $110 per visit to the health plan providing compelling, evidence-based justification for the continuation and expansion of this provider relationship.
• The scope of services required, including primary care, on-site pharmacy access supported by a licensed pharmacy authorized to dispense specialty medications and staffed by a pharmacist, with all appropriate licensing in place, workers' compensation visits, pre-employment screenings, and drug-free workplace program compliance demands a provider with an established, integrated care delivery model already in place. Additionally, Medical Risk Solutions. LLC is managing the facility build-out to meet the requirements of a Health Center for the City, with MRS funding the build-out costs subject to reimbursement by the City, ensuring both immediate functionality and long-term use. Introducing an alternative provider would disrupt program continuity, eliminate existing economies of scale, and negate the cooperative benefits of the pending Interlocal Agreement.
The Sole Source procurement was reviewed and documented, in accordance with all applicable administrative procedures, including completion of the Procurement Request Form and supporting documentation, which substantiate the basis for this procurement method selection.
Following the July 25, 2024, presentation, a motion was made by Commissioner Langdon “to direct the City Manager to work with staff to develop preliminary plans for creating and implementing Health Care Center for employees of the City of North Port.” The motion passed unanimously (5-0).
By establishing this Employee Health Center through this procurement method, the City of North Port aims to stabilize insurance premiums; proactively manage employee care; and reduce high-cost claims. Employees will benefit from high-quality, convenient care, including access to an on-site pharmacy, while the City gains additional utilization of the facilities for workers' compensation visits, pre-employment screenings, and ongoing compliance with the Drug-Free Workplace Program.
Once the City-operated Employee Health Center launches and employees begin using onsite primary care instead of higher-cost alternatives, staff anticipates that is when the Employee Health Center may break even from operating costs.
Staff estimate meaningful cost savings within three to four years to offset the initial investment from startup, with the exact timing driven by how quickly employees shift their routine care to the clinic and how effectively the Employee Health Center reduces external medical claims. As utilization grows, stable savings level by years four to five. Over longer periods, these efficiencies compound in significant savings.
The Charlotte County presentation regarding the benefits of establishing an Employee Health Center, reflected between 2011 and 2025 their cost growth at an average percentage of approximately 3%, while the State of Florida reflected an average cost growth of approximately 8%. These percentages reflect savings when operating an Employee Health Center in comparison to statewide costs.
This approach supports the long-term health and productivity of the City's workforce, demonstrates sound fiscal stewardship, and positions the organization for sustainable healthcare management well into the future.
The Health Care Medical Services Agreement by and between the City of North Port, Florida, and Medical Risk Solutions, LLC (d/b/a My Health Onsite, also known as Crowne Consulting Group) for an Employee Health Center in the amount of $2,362,593.00 has been reviewed by the City Attorney and is legally correct as to form.
The Health Care Medical Services Agreement by and between the City of North Port, Florida, and Medical Risk Solutions, LLC (d/b/a My Health Onsite, also known as Crowne Consulting Group) for an Employee Health Center in the amount of $2,362,593.00 will be provided to the City Clerk’s Office prior to the June 9, 2026, City Commission Regular Meeting, for signature, subject to City Commission approval.
Strategic Plan Pillar
Good Governance
Financial Impact
In Fiscal Year 2025-2026, the onetime startup cost is budgeted in account no. 540-0900-513-31-04 in the amount not to exceed $1,124,773 and the annual operation cost is budgeted in account 540-0900-513-31-04 in the amount not to exceed $1,237,820. Staff will provide periodic reports including operating costs and the overall financial status of the Employee Health Center.
Procurement
The Single Source procurement was conducted in compliance with the Administrative Code and the established Code of the City of North Port, Florida, Chapter 2 Administrative, Article VIII Procurement, Section 2-407 - Sole Source Guidelines of the Code of the City of North Port, Florida.
Attachments:
1. Agreement
2. Procurement Documents
3. Florida Department of Corporations Document
4. July 25, 2024 Minutes
Prepared by: Sandy Knowles, Assistant Director of Human Resources and Risk Management
Department Director: Christine V. McDade, PHR, SHRM-CP, Director of Human Resources