Office of Superintendent of Schools Board of Education Meeting of June 23, 2011 Office of Chief Financial Officer Melinda Garrett,

Chief Financial Officer SUBJECT: APPROVAL OF MEDICAL ADVISOR FOR HEALTH BENEFITS AND WORKERS COMPENSATION PROGRAM

The Houston Independent School District (HISD) is self-insured for employee medical benefits and workers compensation. As HISD makes improvements in these programs, the evaluation and management of costly medical services to provide best outcomes for participants become key components. Alken Health Resources is a locally-based medical consulting practice with extensive experience in assisting other large employers in controlling and managing health care and overall program costs. Alken Health Resources provides an extensive health care consulting service offering customization to fit individual client needs. Kenneth D. Wells, M.D., is President and Principal Consultant of Alken Health Resources. Dr. Wells has over 20 years experience in creating and implementing innovative, comprehensive healthcare programs and helping corporate customers manage their health, occupational medicine, and wellness initiatives. Some current and past clients include: Apache Corporation, Enterprise Products Partners, El Paso Corporation, Dynegy, and Tenneco. He provides unique services in medical cost containment as a licensed physician with extensive corporate health care plan management experience. He has helped firms realize substantial savings and enhanced efficiencies based on his recommended programs and management processes. Dr. Wells currently serves on the Board of Directors of the CHRISTUS Health System, the University of St. Thomas, and Houston Hospice. Dr. Wells served as Adjunct Faculty to the University of Texas Medical School at Houston and as an Associate Professor at Texas Southern University. He is an Advisory Board Member of The University of Texas Health Science Center @ Houston. HISD is moving forward with implementing priority medical care for high risk medical plan members, domestic medical travel or specialized negotiated care for high cost services, and a 504 medical care network for workers compensation. Additionally, HISD already has implemented limited medical networks for our medical plans, onsite health and wellness centers, disease management programs, specialized pharmacy management programs, employee assistance programs, telephonic wellness coaching, Best Doctors medical second opinion services, WebMD online Page 1 of 2

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health and wellness tools, 24 hour nurseline, and other programs to provide high quality care to participants at the best value. Alken Health Resources healthcare industry expertise as well as the knowledge of the medical community will provide key resources and strategies to integrate these programs, establish appropriate measurable goals, evaluate program effectiveness, and provide key support and intervention to ensure the success of these programs. COST/FUNDING SOURCE(S): The annual cost for this item is not to exceed $640,000 (IS1 33-6219-920-99-951-951) (Health Insurance Fund). None This agenda item supports HISD Goal 4: Increase Management Efficiency and HISD Goal 6: Create a Positive District Culture and is aligned with Core Initiative 5: Culture of Trust through Action.

STAFFING IMPLICATIONS: ORGANIZATIONAL GOALS/IMPACT:

THIS ITEM DOES NOT REQUIRE CONSULTATION. THIS ITEM DOES NOT ESTABLISH, MODIFY, OR DELETE BOARD POLICY.

RECOMMENDED: That the Board of Education approve the use of Alken Health Resources as a medical advisor for the HISD Health Insurance and Workers Compensation programs and authorize the superintendent of schools or a designee to negotiate and execute an agreement, effective June 24, 2011. Page 2 of 2