The city decided to move to a self-funded plan to combat the issue of out-of-control costs. They partnered with an on-site clinic provider to provide all primary care and generic prescriptions at a fixed fee and gave employees the chance to switch. At the time, it felt like a radical move ...
But four years after the clinic opened, annual double-digit premium increases were drastically reduced to an average of less than 2%.
Ownership solves rising cost problems
Getting into the healthcare business fixed rising costs for Arvada, in part because of their on-site clinic’s ability to provide highly personalized care. According to Deven, clinic ownership offers several advantages over a traditional health insurance plan.
Unlike traditional healthcare settings, on-site clinic providers aren’t incentivized to see as many patients as possible. Instead, providers focus on forming better relationships and developing more effective treatment plans.
Direct access to anonymous, population data allows clinic staff to conduct focused counseling initiatives aimed at improving the city’s most common chronic conditions, like hypertension.
When an employee’s healthcare needs extend beyond the services of the clinic, the clinic coordinates that care. Providers work to find the best specialists for the best price, and conduct follow-up treatments to ensure ideal outcomes.
Deven estimates that 70% of city employees have made the switch and use the on-site clinic as their main source of all primary care. Looking ahead, he expects their cost savings to continue as even more employees join.
Want to learn more about the benefits of getting into the healthcare business? Check out our eBook: Employer's Guide to Healthcare.