Wondering how to calculate the ROI of an onsite clinic and get your recommendation approved by the CFO? Here are three frequently overlooked sources of savings, beyond build-out, start-up and monthly costs, that improve ROI and boost the likelihood of approval by your CFO.
- Factor in health plan and stop-loss premium savings
One very high claim (think dialysis, kidney failure, heart surgery) can trigger a huge increase in carrier or stop-loss renewal quotes. A clinic model focused on prevention, primary care, and disease management will stabilize and even lower claims for your organization and lower renewal costs. Include the savings from reduced stop-loss premiums and deductibles in your onsite clinic ROI analysis.
- Ask for credits from your carrier
Premium credits from health plan or stop-loss carriers are an overlooked savings from having an onsite clinic. These partners know the value onsite care contributes to reduced claim cost (and risk). Ask if you’re eligible for credit when adding an onsite clinic to your benefit strategy. If the answer is yes, add the savings to your ROI calculation. If the answer is no, add that question to the RFP the next time you go out for bid. You may be pleasantly surprised how many carriers offer it.
- Don’t forget savings from improved productivity and presenteeism
Reduction in absenteeism, and increases in presenteeism and productivity, are significant contributors to onsite clinic ROI for employers in certain industries. Here’s an example: A manufacturing group considered adding onsite physical therapy at their clinic to improve treatment adherence for on-the-job injuries. To calculate ROI, they included productivity and transportation savings earned from bringing this capability onsite. The transportation savings came from eliminating the need for bus service to drive employees to and from physical therapy 30 miles away. The productivity savings came from the increased number of units they could manufacture with a full staff present.
Take another look at your onsite clinic ROI calculations and factor in these three sources of savings. They’ll boost your ROI and give your CFO more confidence in your analysis and recommendation. Learn more about the role of an onsite clinic in your organization’s benefit strategy, download our eBook, Employer’s Guide to Healthcare.