By JOSEPH FITZGERALD

NORTH SMITHFIELD — The School Department’s decision to join the Governmental Health Group of Rhode Island, Inc. (GHGRI) has apparently paid off with the district realizing a 7 percent rate reduction over this year’s health coverage costs.

“It appears the School Department will actually incur a decrease in health care coverage costs,” said School Committee Chairman Robert E. Lafleur, adding the 7 percent rate reduction translates to a 22 percent savings over the figure that had been budgeted for fiscal year 2009.
As a result, the School District is looking at a whopping $400,000 in savings, although the final figure is still being calculated and could rise.
As of October 2007, more than 14 schools and municipalities throughout the state were participating in group purchasing of health care through GHGRI, a non-profit co-op made up of cities and towns that provides more competitive premium rates and lower administrative costs.
The School Department opted to become a member of GHRI after what Lafleur described as “many months” of research by School Superintendent Stephen Lindberg and Business Manager Irene Scripsack on the different approaches to purchasing health care coverage.
“Throughout the fall and winter Mr. Lindberg and Mrs. Scripsack researched and reviewed other options such as self-insured through a group approach,” he said. “There were several options that were explored all of which were viable. However, they felt GHGRI was well structured and organized with a successful track record.”
Lindberg made a  recommendation to the School Committee last month to allow the district to join the organization and become self insured as part of a larger group. The School Department submitted an application and went through a review process before it was ultimately approved as a member.
Lafleur lauded Lindberg and Scipsack for their work, saying the decision to join the co-op has paid off big and that the savings the district has realized is welcome news in light of the district’s budgetary problems of late.
“As a result of their forward thinking, they have made it a goal to collaborate with the town and other school districts wherever possible to develop as many efficiencies where appropriate and practical,” he said.
Lafleur cited previous examples, including a long-term contract for electricity use and a contract for propane, both of which have saved the district thousands of dollars; collaborative purchase of school supplies and custodial supplies; purchase of diesel fuel “futures” for school buses,which has saved on taxes as well as surcharges by the contractor; a collaboration with Smithfield on a student information system saving the district between $20,000 and $30,000; collaborative bidding with Smithfield on school bus transportation, fuel, and oil; and providing technology assistance as needed to the town through School Department personnel as well as receiving cooperation and collaboration from the town with assistance from town departments such as the Department of Public Works.
“The superintendent’s belief is that all of these efforts benefit the entire community and not just the school community,” Lafleur said. “It is not a matter of who gets the credit but rather that we work together as an entire community to try to get through some tough times. It is what the community should expect from its leaders and it is the only way that communities will move forward without falling apart and turning on themselves.”