Return On Investment (ROI)

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Imagine two 30-year-old males with diabetes. One male is visiting the employer’s OnSite Health clinic every three months, requiring about 30 minutes each visit. At that time, the Family Nurse Practitioner (FNP) is monitoring labs, blood pressure, and educating the employee on healthy eating and exercise. The FNP is reviewing meds and progress, educating, motivating and helping to set reachable goals for the patient, all in an effort to control the diabetes and prevent catastrophic illnesses related to the condition.

The other male has no OnSite Health clinic and must take time away from work to go to his Primary Care Physician (PCP) which is a ½-hour on average to and from work, travel to a lab for lab work (another hour), and then has to wait a week for results, only to have to go back to the PCP to review; more drive and visit time. At that time the PCP may change medications, etc. Another appointment is made for three months down the road, and a similar scenario plays out. The frustration lies with the employee's need to spend so much time away from work which leads to non-compliance, which leads to further complications of the disease. For every half-hour spent at an OnSite Health clinic, a person going off-site would expect to lose half their work day in drive time, wait time, lab time, and follow up.

From this very real example, the OnSite Health clinic benefits are obvious when it comes to preserving productivity and minimizing healthcare costs both to the employer and to the employee. Add in other quantifiable benefits like OnSite Health’s ability to dispense common medications on-site at cost (71% of U.S. employers spend 16% percent or more of their total health care budget on pharmacy benefits) and be the first line of defense in urgent care instead of an expensive trip to the emergency room, and the Return On Investment (ROI) becomes significant quickly.

Several studies have been done on the ROI that an employer can expect by implementing an on-site clinic. The most notable current studies state that a range of 3 to 6 percent is possible. Based on real world examples and industry expert advice, the time to realize this ROI can be anywhere from one year to five. OnSite Health’s approach will bring about the quickest ROI possible by customizing a program to suit the culture and situation of your company, not a one-size-fits-all program purchased off the shelf from a health plan or wellness vendor.

A great reference for what is driving significant ROI for employers is the 18th annual Towers Watson/NBGH Employer Survey on Purchasing Value in Health Care. Surveyed were 583 employers with at least 1,000 employees collectively employing 11.3 million full-time employees, with 8.5 million employees enrolled in their health care programs and operate in all major industry sectors. The report focuses on the best practices of the top tier employers that had an average rise of 2.2%, less than half the mean and roughly in line with general inflation. One common theme amongst the best performers was that they had all embraced on-site health services.

The Towers Watson report stated that the most successful companies separate themselves from their competitors by making significant strides in six core areas:

  • Health improvement
  • Engagement
  • Accountability
  • Linking provider strategies
  • Technology
  • Healthy environment

OnSite Health is uniquely positioned with its staff and resources to be your partner in all 6 of these core areas to bring about a significant return on investment. Our strategies are focused on efforts to contain employer and employee costs creating a greater share of the employer’s budget to devote to other aspects of their rewards, including salary increases and retirement, which also drives your effectiveness in achieving attraction and retention goals. From our viewpoint, there is no better partner to achieve ALL of your ROI goals than OnSite Health!

To find out what your return on investment might be, click here to request an online quote.

Additional outside resources can be found here:

http://www.shrm.org/hrdisciplines/benefits/Articles/Pages/Rx-Drug-Spending.aspx

http://dash.harvard.edu/handle/1/5345879

http://www.chapmaninstitute.net/articles/05_TAHP_26_4_Meta_Evaluation_2012.pdf

http://www.towerswatson.com/en/Insights/IC-Types/Survey-Research-Results/2013/03/Towers-Watson-NBGH-Employer-Survey-on-Value-in-Purchasing-Health-Care