Agenda Item Wording:
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Visalia Health and Wellness Clinic administration and operation - Authorize the City Manager to execute an amendment to extend the agreement for clinic administration and operation with Elite Corporate Medical Services not to exceed $330,000, for one year ending June 30, 2027.
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Agenda Date: 08/17/2026
Prepared by: Andrew Guzman, Risk Manager, Andrew.Guzman@visalia.gov, (559) 713-4335; Shonna Oneal, Administrative Services Director, Shonna.Oneal@visalia.gov, (559) 713-4053
Department Recommendation: Staff recommends that the Visalia City Council authorize the City Manager to execute an amendment extending the agreement with Elite Corporate Medical Services, Inc. for one year, ending June 30, 2027, in an amount not to exceed $330,000.
Summary:
The City of Visalia has operated a Health & Wellness Clinic for employees, retirees, and eligible dependents since October 2012. The clinic provides primary and preventive medical care to participants enrolled in a City health plan and also serves as the City’s occupational health provider by performing pre-employment physicals, DOT physicals, and medical services required for regulatory safety compliance. Elite Corporate Medical Services, Inc. administers and operates the clinic.
Between May 1, 2025, and April 30, 2026, the clinic recorded 1,824 patient visits, including 1,539 standard medical visits and 285 occupational health visits. Voluntary patient surveys administered by Elite indicate that patients would have otherwise sought care through an emergency room, urgent care facility, or another primary care provider if the clinic was not available to them. Because Clinic services are provided through the City's fixed-fee agreement rather than through the City's self-funded medical plan, these services help reduce claims activity that would otherwise be submitted to the medical plan.
Elite has proposed a 3% increase to the monthly administration fee, increasing the City’s annual cost from approximately $319,246.36 to $328,468.80. This increase is included within the adopted budget, and no additional appropriation is required.
Staff recommends a one-year extension of the agreement to maintain uninterrupted clinic operations while the City completes the competitive bidding process for future clinic administration services.
Background Discussion:
The City of Visalia Health and Wellness Clinic (“Clinic”) opened in October 2012 to address rising healthcare costs and promote health and wellness with the employee population. Elite Corporate Medical Services, Inc. (“Elite”) was selected as the administrator and has operated the Clinic continuously since its inception.
The Clinic operates Monday through Friday from 8:00 am to 6:00 pm and Saturday from 8:00 am to 3:00 pm. Clinic visits are available at no cost to benefit-eligible employees and retirees enrolled in the City’s EPO and PPO medical plans. Participants enrolled in the High Deductible PPO plan are responsible for the cost of the visit at the time of service to maintain Health Savings Account eligibility.
Clinic services can be broken into three categories:
• Medical services for health plan participants, including acute and episodic care, chronic condition diagnosis and treatment, lab work, and an in-house pharmacy for common non-narcotic medication. Care also includes wellness and prevention services such as annual health screenings and sport physicals.
• Occupational health services, including pre-employment physicals, DMV/DOT physicals, and HazMat physicals.
• Safety compliance for the City’s Bloodborne Pathogen Exposure Control Plan by providing vaccinations, tuberculosis screening, Hepatitis A and B, and measles, mumps, and rubella (MMR) immunizations for employees whose job duties require them.
During the period of May 1, 2025 through April 30, 2026, the clinic recorded the following visit information:
Standard medical visits: 1,539
Occupational medical services: 285
DOT physicals: 60
Total encounters: 1,824
The City's annual cost for Clinic administration comes to an all-inclusive cost of approximately $175 per patient encounter. This fixed-cost model also includes occupational health services, regulatory safety compliance activities, and other operational services that would otherwise require coordination with external providers.
Patients are offered a voluntary survey after their appointment asking where they would have sought care had the Clinic not been an available option. Of those responding, 56% indicated that they would have gone to the emergency room or urgent care, 29% would have seen another primary care physician, and 15% would not have sought care at all.
Because Clinic services are provided through a fixed-fee agreement rather than through the City's self-funded medical plan, they help reduce claims activity that would otherwise be submitted to the medical plan. The clinic also provides many employees with convenient access to care, allowing them to receive treatment in a timely manner at a low, or no cost.
Beyond cost considerations, the Clinic offers employees a practical alternative to the emergency room and urgent care, both of which typically involve long wait times and carry the risk of a secondary exposure to illness in the waiting room.
The Clinic has operated with the same administrator since October 2012. Staff intends to issue a request for proposal to evaluate available service providers and current market pricing. Staff recommends a one-year extension with Elite to maintain the continuity of operations and continued occupational health services while completing the competitive bid process.
Fiscal Impact including annual maintenance and operating costs: The total cost for this one-year agreement is an annual amount not to exceed $330,000. Clinic administration: $316,636.80; On-site medications: $9,000.00; Janitorial Service: $2,832.00. This amount is already included in the adopted budget, and no additional appropriation is required.
Prior Council Action: Council approved the establishment of a Health & Wellness Clinic in 2012 and authorized a contract with Elite Corporate Medical Services to provide administration. In 2015, Council approved an amendment to the contract to allow for expanded hours. In 2021, Council approved a sole-source 3-year contract with Elite for continued operation of the Clinic.
Alternatives: Do not approve the agreement and discontinue the Clinic. This alternative is not recommended. Discontinuing the Clinic will remove a lower-cost option for care for employees and create disruption for human resources testing and safety compliance services, and require the City to transition these services to external providers, which may result in increased administrative coordination and less convenient access to care for employees.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute an agreement to extend the agreement with Elite Corporate Medical Services, Inc. for the administration and operation of the City of Visalia Health & Wellness Clinic through June 30, 2027, in an amount not to exceed $330,000.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 08/17/2026
Attachments: Amendment to Agreement to Provide On-Site Medical Services Between City of Visalia and Elite Corporate Wellness
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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