East Lyme - The Board of Finance will consider next week approving funds to start the first year of a new clinic, managed by a private company, CareHere, for town employees and their dependents.

The appropriation of up to $505,717, approved last week by the Board of Selectmen, covers the clinic's build-out costs and the first year's operation costs.

If the finance board moves forward at its meeting 7 p.m. Wednesday at Town Hall, town residents will next vote on the appropriation at a Town Meeting at 7 p.m. Nov. 19 at Town Hall.

The town is pursuing a health care model in which town employees could opt into visiting the proposed clinic in town. In September, the Board of Selectmen authorized the first selectman to sign a three-year contract with CareHere.

The private company based in Brentwood, Tenn., projects it will save the town money through cost-efficiencies and preventive care.

Projections show the town, which is self-insured, will save about $225,000 in its health care operation costs the first year, said Town Finance Director Anna Johnson. The savings are compared to the town's marketplace costs and also factor in a productivity savings in which employees will save time using the clinic.

The company, which offers wellness-management programs, projects the savings will continue to grow each year and reach up to $1.2 million in the fifth year. The model is based on participation from all of the town's 496 employees currently enrolled in the health insurance program.

The clinic, slated to be open 16 hours a week and staffed by a doctor and nurse, would offer appointments in 20-minute intervals that wouldn't require a co-payment in most cases. The doctor would have medical malpractice insurance.

The town is considering leasing an office for the clinic at three potential locations: a 600-square-foot office at 436 Main St., a 1,324-square-foot space at 131 Boston Post Road, and a 1,000-square foot option at the Midway Mall. The costs for each option, including renovating for the clinic and the first year's rent, are $41,040 for the Main Street location, $30,620 for the Boston Post Road site, and $53,384 for the Midway Mall space. The cost to renovate the space and the first year's rent and utilities are factored into the $505,717 appropriation.

Formica said the Boston Post Road office is close to the high school, where there are the most employees, and also provides the most value per square footage.

The appropriation passed 3-2-1 at Wednesday's Board of Selectmen meeting. Rob Wilson, a town employee, abstained. Selectwomen Holly Cheeseman and Rose Ann Hardy opposed it, while First Selectman Paul Formica and selectmen Mark Nickerson and Kevin Seery supported it.

Formica said the town needs to act to save money in the face of rising health care costs.

Cheeseman said she felt there are too many uncertainties with the Affordable Care Act to move forward. She also expressed skepticism over CareHere's projected savings and said she's not convinced people will use the clinic.

Hardy also raised several objections. She said the town had not surveyed employees to see if they wanted the service and also didn't think the town should take on the responsibility and liability at this time. Hardy, a teacher at East Lyme High School, clarified that she is not on the town's health insurance plan.

Seery said he understands the point that the health-care law is in flux, but he said he is concerned the town will see even higher cost increases if they don't act now.

"I like to be proactive, especially in the area of health care," said Seery, adding that the state has been successful with the Health Enhancement Program, which encourages preventive health care for state employees.

k.drelich@theday.com

Twitter: @KimberlyDrelich