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

On-site health centers are gaining popularity, offering accessible healthcare to employees. But their ROI varies. Letitia Heshmat's article explores the considerations for companies thinking about these clinics. While 43% of employers reported a 1.5:1 or higher ROI, measuring wellness program ROI isn't standardized. Key factors include company size, location, cost savings, employee needs, engagement, and space. Aligning the clinic with broader company goals is crucial, focusing on reducing claims, lowering absenteeism, and increasing productivity. Every business is unique, and a thorough analysis is essential to determine if an on-site health center is the right fit.

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.

ROI Statistics

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.

Factors to Consider

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.

Considering the Objective

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, businesses must conduct an in-depth analysis to assess whether an on-site health center would be an effective strategy.

Interested in Learning More?

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.

Work Health Solutions

Work Health Solutions

About Us

Work Health Solutions is dedicated to preserving a safe work environment and improving existing programs and care for local, regional and national organizations.

Share This Post

Facebook
Twitter
LinkedIn
Email

Recent Posts

Speak with an Occupational Health Specialist

If you have questions about Work Health Solution's occupational health services or if you need to purchase bulk medical supplies, such as COVID-19 testing kits, please contact us.

Get in Touch

Dr. Michael Tenison

A series of notable accomplishments distinguish Dr. Michael Tenison’s career in medical operations and healthcare management:

  • Successfully led medical operations at a national healthcare provider, focusing on optimizing healthcare delivery and patient outcomes.
  • Oversaw the regional medical practices in key markets like Oregon and Northern California, ensuring consistent, quality medical care and service delivery.
  • Demonstrated exceptional leadership in building and mentoring a large medical provider team, enhancing team performance and patient care standards.
  • Implemented strategic company policies and protocols, significantly improving center efficiency, clinical quality, and patient experiences.
  • Played a pivotal role in financial planning and identifying growth opportunities for healthcare services, contributing to the organization’s overall success.
  • Served as a primary point of contact for regional employer clients and insurance companies, fostering strong relationships and effective communication.
  • Maintained high medical care and case management standards through diligent supervision, chart audits, and performance metric analysis.

Dr. Matt Feeley

Dr. Matt Feeley is a renowned figure in military aviation medicine, with a robust background in occupational and environmental medicine from the Johns Hopkins Bloomberg School of Public Health. 

  • Former Naval Flight Surgeon, exemplifying his expertise in aerospace medicine and commitment to military health.
  • Served with distinction at NSA Bahrain and HSM-37, earning the COMPACFLT Flight Surgeon of the Year award for exceptional medical service.
  • Supported U.S. Marines VMFA-323 aboard the USS Nimitz, MACG-38, and VMU-3, demonstrating versatility and leadership in diverse medical environments.
  • Broad interests and significant contributions in global health, corporate medicine, and aerospace medicine, highlighting his multidisciplinary approach.
  • Proven track record as a dynamic leader, well-equipped to face the challenges in a fractional medical directorship role with innovative solutions.

Dr. Glen Cheng

A physician-attorney with a dedication to healthcare innovation, informatics, and digital health.

  • Currently spearheads employee health protection and promotion within the VA Pittsburgh Health Care System.
  • Trained in residency at Harvard, achieving board certification as a physician; also a licensed patent attorney with experience as FDA regulatory counsel.
  • Co-founded Acceleromics, a consulting firm providing clinical and regulatory guidance to digital health startups.

Erin Davis

 Chief Clinical Officer at Work Health Solutions, certified in Adult-Gerontology (AGNP-C) and Athletic Training (ATC).

  • Oversees clinical operations and ensures high clinical standards across the company’s national field staff.
  • Former Manager of Clinic Operations and Occupational Health Nurse Practitioner at Stanford University Occupational Health Center (SUOHC).
  • Specialized in treating occupational injuries and illnesses, and provided medical surveillance and travel medicine consults at Stanford and SLAC National Accelerator Lab.
  • Dedicated to sports and occupational injury treatment and prevention.
  • Assistant Clinical Faculty at UCSF, mentoring students in clinical rotations within the Adult Gerontology and Occupational and Environmental Health Program.
  • Holds leadership roles as Treasurer and President Elect of the California El Camino Real Association of Occupational Health Nurses (CECRAOHN), affiliated with the American Association of Occupational Health Nurses (AAOHN).

Dr. Robert Goldsmith

Expert in benefits design and onsite innovation with specialization in the pharmaceutical industry.

  • Previous role as Executive Director for Employee Health at Novartis Services, Inc., leading health services and clinical support.
  • Instrumental in creating an integrated healthcare system at Novartis.
  • Former private practice in internal medicine in Stamford, Connecticut, and Medical Director consultant for GTE Corporation.
  • Transitioned to GE as a Global Medical Director in 2000.
  • Holds a medical degree from Albert Einstein College, an MPH from the University of Connecticut, and completed training at Greenwich Hospital and Yale-New Haven Medical Center.
  • Assistant professor in the Department of Medicine at the Vagelos School of Medicine, Columbia University.
  • Serves as a team physician for high school athletes in Stamford.
  • Published works on occupational health risks, primary prevention, and exercise-induced asthma.