On-Site Health Centers: Determining the Benefit to a Company’s ROI

In her article, “On-Site Health Centers: Determining the Benefit to a Company’s ROI,” Letitia Heshmat delves into the increasingly popular topic of on-site health centers as a viable healthcare option for employees. She argues that while these centers can provide cost-effective, accessible healthcare services, companies must conduct thorough analyses to determine if an on-site health clinic would be a beneficial investment.

According to a 2021 survey by the National Association of Worksite Health Centers, most employers who measured ROI found that on-site clinics provide positive returns. Specifically, 43% reported an ROI of 1.5:1 or higher, and 31% reported an ROI of 2:1 or higher. However, Heshmat cautions that no universally accepted method for measuring ROI for wellness programs exists. Only 23% of companies report tracking their ROI, making it difficult to ascertain hard-dollar savings.

Heshmat outlines several key factors companies should consider before implementing an on-site health center:

  1. Population Size & Location: A smaller company may not achieve the same ROI as a larger one due to the fixed costs of establishing a clinic. The clinic’s location is also essential; centers in rural or underserved areas can be invaluable, potentially resulting in higher ROI.
  2. Cost Savings: While the upfront costs can be high, companies should weigh these against the long-term benefits. Clinics can offer preventive care and early intervention, reducing more expensive healthcare costs in the future.
  3. Employee Health & Wellness Needs: Companies should consider the specific health needs of their employees. For example, those with higher rates of chronic diseases may find an on-site health center highly beneficial.
  4. Employee Engagement & Satisfaction: On-site health centers often improve employee loyalty and job satisfaction. They demonstrate a company’s commitment to employee well-being, leading to greater productivity and reduced turnover.
  5. Space & Design: Physical space limitations and the clinic’s ambiance must be considered. The design and atmosphere should make employees feel valued and cared for.

Heshmat points out that one of the most important aspects of implementing an on-site health clinic is to align it with the company’s broader goals. While the objectives may differ from business to business, a general standard should involve setting strategic measurable goals for improving employee safety and health. These may include reducing workers’ compensation claims, lowering absenteeism, and increasing productivity.

Her comprehensive overview leaves companies with a much clearer understanding of what it takes to implement a successful on-site health clinic, arguing that it is not a one-size-fits-all solution. The decision should be based on a careful evaluation of numerous factors, from company size and location to the specific health needs of its employees. Therefore, it is crucial for businesses to conduct an in-depth analysis to assess whether an on-site health center would be an effective strategy for them.

If you would like more information on how an on-site health center could benefit your company or having Letitia Heshmat as a speaker, contact Work Health Solutions.

Read the article HERE



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