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Wellness at Work: House Call
May 09, 2007
By Holly Dolelzalek
To get a handle on spiraling medical costs, some companies are bringing heath care deskside—by creating on-site medical clinics that offer employees everything from regular checkups to nutrition consultants to a fully stocked pharmacy. A survey last year by Watson Wyatt revealed that 22 percent of large employers currently have such facilities and an additional 5 percent are planning to install one.
Having an on-site clinic can reduce costs for employees while increasing productivity by cutting out the travel time to and from appointments. So what should a business consider before bringing in their own resident M.D.?
Sara Crate is vice president of business development for Whole Health Management in Cleveland, which helps organizations set up such clinics. She says that a company should have at least 1,500 employees at a given location to make the expense of a clinic worth the return. Smaller businesses can reap the same benefits by banding together with other companies and sharing a clinic. "The savings vary, but [on average] studies show a 30 percent return on investment," says Crate.
Generally, the major costs of the clinic come in the first year of operation. After that, the savings can be significant. "For one client, in the first year of operation, their health-care costs rose 12.1 percent, compared to an average rise nationally of 7 to 9 percent," says Crate. "But their costs rose by only 4.6 percent in the second year, and they're projecting only a 2.2 percent rise for 2006."
The Grand Sierra Resort and Casino in Reno, Nev., opened a 1,000-square-foot clinic for employees in September, and any employee (or family member) covered under Grand Sierra's health plan can see the doctor for a $5 co-pay. There are no long lines or wait times, and employees can stop in for blood work or have tests done on their breaks or lunch hours.
The clinic is a win-win for the resort, according to Sterling Lundgren, vice president of HR at Grand Sierra, because employees don't have to miss work to see the doctor. "We get great feedback from employees on the clinic," he says. "It's a huge incentive to make us an employer of choice in the area."
It also helps Grand Sierra to better manage absenteeism and health costs. The clinic, which only cost $10,000 to start up, is integrated with the company's health plan. Clinic staff promote the wellness initiatives that are intended to complement that health plan, such as fitness programs for employees. "We control costs by having a healthier workforce," Lundgren says.
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