TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 14, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Authority to increase purchase order and exercise the option to extend the agreement for an additional one-year period for Contract 22-RFP-08 On-site Health Care Services with Concentra Health Services, Inc. in an amount of $400,000.00, from an amount of $1,250,000.00 to an amount not to exceed $1,650,000.00, Account 101-25000-612260, Purchase Order 3122799
Body
Dear Sir:
On October 20, 2022, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Concentra Health Services, Inc. to provide on-site health care services for District employees in an amount not to exceed $1,250,000.00. The agreement was issued for a three-year period beginning January 1, 2023, and ending December 31, 2025. The agreement included an option to extend for two additional one-year periods.
As of July 31, 2025, the attached list of change orders has been approved.
Original Contract Amount $1,250,000.00
Date of Board Approval 10/20/2022
Cumulative Change Order (07/31/2025) ($102,414.40)
% Change of Original Contract Value (8.19%)
Current Contract Value $1,147,585.60
Requested Increase $400,000.00
New Contract Value $1,547,585.60
% Change of Current Contract Value 34.86%
Total % Change of Original Contract Value 23.81%
This change order to amend the agreement and increase the purchase order is in compliance with the Illinois Criminal Code because it was specifically provided for in the original contract, is germane to the original contract as signed, and is in the best interest of the District.
The purpose of this contract was to select a vendor to provide on-site health care services for use by the District’s employees and to continue to create a culture of health in the workplace. This is in direct alignment with the strategic plan which seeks to foster a culture that recognizes the value of every employee and provides a visible, tangible program in support of this goal. The on-site health care services provided by Concentra Health Services, Inc. include the following: acute/urgent care services (abrasions/lacerations, allergic reactions, muscle or back injuries, cold/flu, minor burns, eye problems, sprains/strains, etc.); basic primary care services; prescribing and dispensing medications; health and wellness activities; injury assessment; basic laboratory services (influenza tests, metabolic tests, mono spot tests, strep throat rapid tests, urinalysis, etc.); and telemedicine. Primary care services include physical examinations; diagnosing and treating common and chronic health conditions; conducting preventive screenings; administering vaccinations; and providing health coaching and counseling. These services can also act as an access point for those employees that do not have a primary care physician.
Concentra’s staffing model for the on-site health care services includes a Physician’s Assistant and a Medical Assistant. This team has been in place since the opening of the clinic in early 2023 and has become a recognized resource within the plant setting.
In the two years since its grand opening, there have been 2,612 visits to the clinic. These include 1,001 urgent care/first aid visits, 469 occupational medicine visits, and 1,139 employer service (i.e., vaccinations, hearing tests, physicals, health screenings, wellness, etc.) visits. Employer services visits include 590 flu shots administered, 50 Hepatitis vaccinations, 181 biometric screenings and various other health and wellness services.
The District has also been able to leverage the clinic to perform required job-specific screenings such as respirator clearance evaluation questionnaires (111), respiratory protection physicals (72), lead monitoring (9), vision acuity testing (2), and audiometric testing (315). These services are performed by the clinic at no additional cost to the District. This has allowed the Safety Section to eliminate several smaller, individual purchase orders, saving the District approximately $15,000.00 per year.
In addition to the employee health and wellness benefits of the clinic, there are also positive financial impacts of providing these services on-site. For example, each urgent care visit redirected to the on-site clinic results in a cost avoidance of approximately $294.00. Based on the number of 2024 urgent care visits to the on-site clinic, a conservative estimate of the cost avoidance would be approximately $95,500.00. If travel and wait times are considered, there is an additional cost avoidance of approximately $55,500.00.
One of the more meaningful financial impacts of the on-site clinic has been on workers’ compensation claims. In 2024, the District on-site clinic provided services for 88 work-related injury cases. The average cost of a workers’ compensation case at an external clinic in the market is $1,349.00. Based on this market pricing, the use of the on-site clinic resulted in a cost avoidance of $118,000.00 for these injury cases. More importantly, the on-site clinic is able to schedule follow-up appointments 3 days after initial treatment, which is 7-10 days sooner than when an off-site occupational clinic is utilized. This allows employees to return to work more quickly, significantly reducing lost productivity. This can result in savings of approximately $250 per day for the District. From an administrative standpoint, the District also realizes a direct savings on its claims handling fee for each workers’ compensation case where medical treatment is handled exclusively within the on-site clinic setting. This has resulted in savings of approximately $7,000.00 since the inception of this contract.
The on-site clinic has been received very positively and is considered a valued service by employees. The Net Promoter Score, a nationally recognized measurement system for customer satisfaction, for the District on-site clinic, is 95.45 out of 100 over the two-year period since the clinic opened. This score is based entirely on patient feedback and reinforces the positive view employees have of these services.
In view of the foregoing, it is requested that the Board of Commissioners authorize the Director of Procurement and Materials Management to extend the agreement with Concentra Health Services, Inc. for an additional one-year period and to execute a change order to amend the agreement and increase the purchase order in the amount of $400,000.00 (34.86% of the current contract value), from an amount of $1,147,585.60, to an amount not to exceed $1,547,585.60.
Funds for the 2026 expenditures in Account 101-25000-612260 are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
Recommended, Thaddeus J. Kosowski, Director of Human Resources TJK:JEF
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 14, 2025
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