3 Ways to Increase ROI on Healthcare Spending
When it comes to increasing ROI, healthcare initiatives likely aren’t the first things that come to mind. Outside of payroll, healthcare costs are traditionally one of the largest operating expenses for a company. And in a volatile healthcare landscape, enterprise insurance rates and premiums can fluctuate wildly, leaving unprepared organizations with huge bills.
Knowing how to track, understand, and control these healthcare costs can provide huge financial gains to organizations of all sizes. Implementing the right strategies and company-wide initiatives can help mitigate and reduce unnecessary healthcare costs. In this article, we’ll look at three sure-fire ways to increase healthcare ROI in real-time, without jumping through complicated hoops.
#1: Know Your Risks
The bulk of an organization’s healthcare costs are determined by how healthy its employees are. This includes, among other things, whether or not employees smoke, are at risk of cancer, or are pre-diabetic. These chronic conditions oftentimes slip through the cracks during periods of open enrollment, meaning that when issues do occur later, employers have to absorb most of the overhead costs. In the US, just 5% of the population drives more than 50% of all healthcare spending each year. While these costs are not altogether unavoidable, 86% of the nation’s $2.7 trillion annual healthcare expenditures are for individuals with chronic conditions. These factors illustrate that knowing your population’s health risks and current conditions can help employers accurately plan and budget healthcare funds.
It’s also necessary for organizations to understand current healthcare spend. Running a quick claims analysis, which involves reviewing past claims data from insurance providers, can help employers develop strong, outcomes-focused wellness initiatives. This way, organizations can make detailed connections between employees with chronic conditions, such as diabetes, and actual financial impacts, such as associated increases in Emergency Department visits.
#2: Help Employees Avoid the Emergency Department
Speaking of Emergency Department visits, the second way to increase healthcare ROI is to avoid this money pit altogether. The average ED visit costs more than $1,200, which can quickly add up for companies with multiple employees making emergency visits to hospitals. When it comes time to calculate employer healthcare costs, these hefty claims charges will certainly hike up company healthcare rates.
For employers looking to cut back costs and increase healthcare ROI, helping employees avoid the emergency room can quickly reduce costs. An estimated 13% to 27% of ED visits in the United States could be managed in clinics, physician offices, or other less expensive care settings, according to the US Dept. of Health and Human Services’ Agency for Healthcare Research and Quality. One way employers can mitigate the cost of preventable ED visits is by investing in an onsite or near-site clinic, which offers convenient access to needed healthcare services without emergency department prices.
#3: Promote Wellness Initiatives
At the end of the day, healthy employees result in less healthcare spend, which equals more ROI for an employer. The best way to see tangible results is by planning, implementing, and perfecting company-wide wellness initiatives. Some examples could include employee activity days, goals and rewards for health or fitness milestones or even a rewards program for initiative participation. Other benefits may include having a full-time psychiatrist on site or offering wellness initiatives to spouses or children as well.
Companies that promote strong wellness programs often influence employees to lead healthier lifestyles on their own time. When employers take a strong, vested interest in the health and well-being of their employees, overall employee satisfaction and happiness tends to increase as well. Afterall, happy and healthy employees are the cornerstone of a valuable, successful business.
Start Driving Healthcare ROI Today
As your organization looks to increase healthcare ROI and decrease healthcare spend, providing valuable wellness programs to employees is a great first step. Keeping track of high-risk, high-cost employees, reducing costly trips to the emergency department, and promoting company-wide wellness initiatives can help increase overall healthcare ROI.
OurHealth, a leader in onsite and near-site clinics, is enabling organizations of all sizes deliver personal health care services to employees; helping to drive down the cost of care and to increase overall employee health and satisfaction.
To learn more about increasing your organization’s healthcare ROI, get a free healthcare ROI analysis from OurHealth.
