NCPA - National Center for Policy Analysis

COMPANIES USING ON-SITE HEALTH CLINICS TO CUT COSTS

August 13, 2007

As companies try to rein in rising health care costs, workers in many industries are dealing with on-site health clinics, says the Detroit Free Press.

According to the consulting firm Watson Wyatt Worldwide:

  • An estimated 23 percent of large employers -- those with at least 1,000 employees -- have on-site health clinics as of 2006-2007.
  • Another 6 percent of these large employers plan to add clinics next year.

Salisbury, Md.-based Perdue Farms is considered a pioneer in slashing health care costs by building on-site health clinics:

  • By taking charge of administering and managing its health plan, Perdue has reduced its health care costs.
  • The average cost per worker was 3 percent lower during fiscal year 2007, which ended for the company on March 31, compared with fiscal year 2004.
  • Nationwide, the cost of employer-sponsored health plans rose an average of 8 percent in 2006.

"It's an issue of corporate will, not technical ability," said Dr. Roger Merrill, chief medical officer at Perdue.  "Companies don't want to be in the medical business. My answer to that is you are already in the medical business if you are spending millions of dollars in medical bills."

Source: Luladey B. Tadesse, "Companies using on-site health clinics to cut costs," Detroit Free Press, August 13, 2007.

 

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