As employee healthcare trends rapidly change (think rising insurance costs or aging employees), employers have turned to newer trends to help deliver premium healthcare experiences without premium costs. One of these trends — onsite clinics — is providing both employers and employees real advantages. Employers are drawn to the potential cost-saving results of onsite clinics while employees are drawn to the immediate, personal care benefits.
For any organization that is either currently leveraging an onsite clinic or thinking about investing in onsite healthcare services, tracking short and long term value is a must. Unlike traditional revenue-based metrics, value-based metrics are a bit more subjective and therefore rely on case-by-case goals and objectives.
While most employers already look at VOI (Value on Investment) metrics such as employee satisfaction, there are a few questions organizations can ask themselves when trying to measure the value of an onsite clinic:
1. Are employees receiving better access to primary care services?
While there are plenty of reasons to invest in an onsite clinic, the overarching goal should be to deliver better healthcare services and experiences to employees. This means making it easier for them to access primary care services, pharmacies, and diagnostic labs. Unfortunately, an incredible 28% of American men and 17% of women say that they do not have a regular primary care physician. Bringing healthcare onsite can help employers bridge this gap between patient and provider at a considerably lower cost than traditional healthcare services.
Even though only about 30% of onsite clinics currently provide primary care services, this number is expected to grow significantly in the upcoming years as employers recognize the ongoing value of these services. From combating chronic conditions to providing instant workplace injury support (onsite clinics can care for over 80% of workplace injuries), onsite clinics are a massive step forward for employers looking to deliver valuable healthcare experiences to employees.
2.Has the onsite clinic helped increase healthcare affordability for employees and employers?
While there is a significant up-front investment required to establish onsite clinics, the cost-cutting effects are real for both employers and employees. Employers can see significant cost savings when it comes to health plans and claims costs, as offering wellness programs and primary care services on site results in healthier employees, which in turn helps reduce claims costs for organizations.
These cost savings are also realized for both employers and employees when it comes to diagnostic tests, prescriptions, and in-plan referrals as well. These clinics are quick and easy to access, which saves employees time and money on travel expenses. Organizations should track peak times at their onsite clinics to determine if special hours (which can sometimes mean higher care rates) are ever needed.
3.Has the organization seen a recognizable uptick in better healthcare outcomes?
This is where employers can start looking at qualitative factors to measure if an onsite clinic has been successful or not. Are employees more satisfied at the office? Has there been an increase in employee-led wellness initiatives like run clubs or healthy pitch-in lunches? Are employees with chronic conditions, such as diabetes, receiving ongoing support from both the clinic and the organization? Answering these types of questions are a great start to determining whether or not an onsite clinic is actually delivering value.
While several studies have shown that onsite clinics help increase employee engagement in employer-sponsored wellness programs, organizations with onsite clinics should take an active role in tracking and monitoring this engagement to accurately measure value. This could mean sending out employe-facing surveys or working directly with a clinic to measure utilization.
4.Is the onsite clinic helping to enhance company culture and productivity?
One of the biggest returns employers see from onsite clinics is increased employee productivity. When employees have to leave the office to travel to appointments, it cuts into valuable time and resources. These lost hours can quickly add up—lost productivity due to absenteeism from injury or illness cost employers almost $225 billion every year. These costs are by no means trivial, and onsite clinics can play a tremendous role in cutting back absences and increasing productivity. In fact, a recent study found that onsite clinics help to reduce ‘lost’ work days by 63%.
Onsite clinics can also boost employee morale and can positively impact company culture. By investing heavily in employee health services and experiences, employers are showing their employees that they care about wellness and health beyond just words—they’re willing to invest in long-term solutions. Onsite clinics also open a door to candid discussions about health and wellness in the workplace—traditionally a taboo subject—which can enhance company relationships and culture. Employers need to engage directly with employees to measure this valuable metric.
5.Has the onsite clinic helped with talent attraction and retention?
Healthcare is one of the most important benefits employers offer, and as such it often requires the most attention from both employers and employees. Offering an onsite clinic is an attractive benefit to both current and potential employees, and organizations can use this differentiator to their advantage when it comes to talent recruitment.
When it comes to millennials, the highly-coveted age group between 18 and 34, onsite clinics are quickly becoming one of the biggest company selling points out there. More than 34% of millennials say that healthcare is the most important benefit a company can offer, and a majority of these job seekers are looking for career opportunities with an employer that offers onsite clinics. HR and hiring managers should track employee retention rates and hiring statistics to monitor whether or not an onsite clinic is delivering value in this regard.
Getting started with onsite clinics
For organizations looking to deliver premium patient experiences to employees without a premium price tag, onsite clinics are the answer. Although the metrics may be a bit tough to identify, the actual value delivered by onsite clinics is tangible. OurHealth, a industry leader in clinic solutions, is helping organizations of all sizes deliver value to employers and employees through onsite and near-site clinics.
To learn more about increasing the value of your organization’s healthcare investment, get a free healthcare ROI analysis from OurHealth.