Agenda Date: 11/17/2026
Subject:
Title
Resolution 76-2026: Approving a contract with Marathon Health for the City of Littleton employee clinic administration
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Tracy Hooker, Human Resources Director |
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Presentations: |
N/A |
PURPOSE:
The city conducted a competitive Request for Proposals (RFP) for employee health clinic administration beginning January 1, 2027. Six proposals were received. Following evaluation and advisory committee review, Marathon Health was selected as the preferred provider. Approval is requested for a five-year contract beginning January 1, 2027, to maintain and expand access to employee clinic services.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
Employees and eligible dependents enrolled in a City medical plan will continue to have access to primary care, preventive services, episodic care, chronic condition support, laboratory services, prescription medications, and virtual appointments. Under the 2027 model, care will be available at the existing near-site clinic at Buck Recreation Center, through Marathon Health’s Colorado Network locations (14), and virtually. Services will remain available at no cost for members enrolled in the Copay plan; members enrolled in a HDHP will pay $10 for non-preventive clinic services, consistent with HSA requirements.
Clinical services include:
• Primary care services
• On-site episodic care
• In person and telemedicine appointments
• Care and/or referral of chronic conditions
• On-site lab testing
• Prescription medications
• Annual wellness exams
Operational and Administrative services include:
• Overall clinic management
• Provider staffing
• Care management of patients
• OSHA/HIPPA compliance
• Waste handling and disposal
BACKGROUND:
The employee clinic is a valued component of the city’s total rewards strategy, supporting employee health, recruitment, retention, and responsible management of medical plan costs. The clinic currently operates at Buck Recreation Center, with the city prioritizing continuity at this location and retention of existing providers during the transition. Marathon Health will coordinate transition planning with the city and the current operator, CareATC, to minimize disruptions to ongoing care, including chronic condition management and medication access. The new model adds access through Marathon’s Colorado Network and virtual care.
A near-site employee wellness clinic helps reduce major medical plan costs by giving employees convenient access to preventive care, early diagnosis, chronic condition management, and treatment for everyday health concerns before they become more serious and expensive medical events. By reducing unnecessary emergency room visits, avoidable hospitalizations, and higher cost specialist care, the clinic can help lower the claims paid by the organizations major medical carrier. The return on investment comes from avoiding more expensive medical claims down the road. The City is investing in access to care upfront to avoid paying significantly more for care later.
The 2026 RFP resulted in six proposals. Following review of access, care quality, administration, pricing, and transition considerations, the city selected Marathon Health for services beginning in 2027.
Prior Actions or Discussions
N/A
FISCAL IMPACTS:
The proposed five-year agreement with Marathon Health includes an annual recurring service fee of $406,224 in the first contract year (2027), with subsequent annual fees established in the agreement. The contracted recurring service fees are outlined below:
|
Contract Year |
Monthly Fee |
Annual Fee |
|
Year 1 - 2027 |
$33,852.00 |
$406,224.00 |
|
Year 2 - 2028 |
$35,162.67 |
$421,952.08 |
|
Year 3 - 2029 |
$36,525.76 |
$438,309.16 |
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Year 4 - 2030 |
$37,943.38 |
$455,320.60 |
|
Year 5 - 2031 |
$39,417.70 |
$473,012.44 |
These recurring service fees provide a predictable cost structure for clinic administration over the five-year term. The clinic supports access to affordable primary and preventive care, chronic condition management, employee wellbeing, and recruitment and retention. By providing convenient care that may otherwise generate higher-cost medical plan claims, the clinic also supports the city’s healthcare cost-containment strategy.
The amounts above represent recurring service fees only. Any separately billed pharmacy, laboratory, or other utilization-based expenses would be additional and should be considered when evaluating total projected clinic costs. The expected sum of all costs for the employee health clinic is approximately $705,000 for 2027.
STAFF RECOMMENDATION:
Staff recommends approval of the five-year contract with Marathon Health effective January 1, 2027. This action supports continuity of essential clinic services while expanding convenient access options for covered employees and dependents.
ALTERNATIVES:
Council may decline to approve the contract or direct staff to negotiate an alternative. Either approach could delay transition planning and place continuity of clinic services at risk after the current agreement ends.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 76-2026 approving a contract with Marathon Health for the City of Littleton employee clinic administration.