East Lyme — The Board of Selectmen voted Wednesday to move forward with a proposal for a new clinic for town employees that would be located within the community.

Under the proposal, town employees and their dependents could opt into using the clinic for primary care services and medical tests near their workplace, but it would not be mandatory, said First Selectman Paul Formica.

On Wednesday, the selectmen authorized Formica to sign the contract with CareHere, the company that would manage the clinic.

CareHere is a private company based in Brentwood, Tenn., that manages clinics for occupational health or primary care services for employees and their dependents in or near their workplace.

CareHere representatives said in a presentation to the selectmen in May that the clinic focuses on wellness programs and preventative care. The representatives said the clinic would save employees time by allowing them to have their medical appointments near work and also save the town money through cost efficiencies. The clinic would cost the town a per-month, per-employee management fee plus a flat fee for the initial startup costs, according to the initial presentation.

On Wednesday, the town's Finance Director Anna Johnson said CareHere's estimates show that if all employees opt in, the program could save the town about $226,000 the first year, an accumulated $1.2 million by the third year, and an accumulated $3.3 million by the fifth year.

The selectmen will decide at a future meeting where to locate the clinic and will factor in the cost for building upgrades or new construction. They discussed Wednesday possibly leasing a space at the Midway Mall or on Hope Street, building an addition on the Community Center or finding space in a town-owned building.

Formica and selectmen Mark Nickerson, Kevin Seery and Rob Wilson voted in favor of the proposal. Selectwoman Rose Ann Hardy opposed it and said she had some concerns, including that town employees recently had a major change in their health care plans when the town switched its insurance carrier. Selectwoman Holly Cheeseman was traveling and did not attend the meeting.

k.drelich@theday.comTwitter: @KimberlyDrelich