SUBJECT
title
Authorizing the City Manager to terminate Professional Services Agreement with VitalMed Urgent Care for the FY25-067 After-Hours Physician and Medical Services for City of Laredo employees, employee’s dependents and City of Laredo Retirees enrolled in the City Employee Health Basic Plan Medical Services. The agreement is funded through the Human Resources - Risk Management Fund
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
• Goal 7.1: Improve access to health services for all residents.
• Policy 7.1.3: Promote efficient and preventive health services that support community and workforce well-being.
• Goal 7.5: Strengthen public health systems and operations.
• Policy 7.5.1: Ensure public health programs are financially sustainable, cost-effective, and responsive to operational needs.
• Policy 7.5.3: Support effective management and oversight of health service delivery to ensure quality and fiscal responsibility.
Summary of alignment: This action aligns with the Viva Laredo Comprehensive Plan by supporting responsible stewardship of public resources and ensuring the sustainability of employee health and wellness services. Terminating the agreement allows the City to reassess service delivery models and cost structures to better meet workforce health needs in a fiscally responsible manner. This decision reinforces the Plan’s goals of strengthening public health operations, maintaining efficient service delivery, and ensuring that health programs remain responsive, effective, and financially sustainable.
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PREVIOUS COUNCIL ACTION
On September 02, 2025, Council approved Motion 25-1478.
BACKGROUND
The City of Laredo solicited formal Request for Proposals for providing afterhours physician/medical services to City employees, employee's dependents and City of Laredo Retirees enrolled in the City Employee Health Plan Basic Medical Services through Cit-E-Bid, the city's electronic procurement system. The City received 4 submittals from the following vendors: Adelphi Staffing, David H. Cruz, MD, Nuestra Salud Health Clinic, and VitalMed Urgent Care.
Proposals were evaluated by the City of Laredo Committee Team. The evaluation scoring was based on the following criteria: Approach, Work Plan, Number of clinic/ Hour services provided, Price, Experiences (previous City/other government agency), Qualifications and References. The evaluation scoring was based on the following criteria: Approach, Work Plan, Number of clinic/ Hour services provided, Price, Experiences (previous City/other government agency), Qualifications and References.
Initial contract was executed on October 1, 2025 and amended on November 6, 2025. The amendment implemented a global urgent care rate of $120 per visit, which would still maintain the annual $80,000 budgeted amount. The amendment was necessary because the original contract allowed services for employees, retirees, and dependents to be billed individually, which was not cost-effective. The global rate was intended to better control costs.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends that Council approves the Motion.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: Human Resources - Risk Management
Account #: 226-2062
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Budgeted in the Human Resources - Risk Management Division account 594-2062-543-5528.