With the costs of health care continually rising, most employers are seeking innovative ways to control expenses while still providing quality care for employees and their families.

One increasingly popular solution is on-site health care clinics. Essentially, an on-site health care clinic is a primary care medical office located within or near an employer’s facility. It is open for a specific number of hours each week based on the number of employees at the company. Clinics can be established at companies that have as few as 100 employees or as many as 10,000 or more.

On-site clinics can offer a broad scope of services, including many of the primary care services one would expect from a family physician. As importantly, these clinics can provide primary care services and many generic medications at no cost to the employees and their dependents.

The employer is responsible for costs associated with setting up the clinic, such as building and equipping the facility, paying hourly fees for the medical professionals who staff the clinic, and paying for treatments and medications dispensed on-site. Most often, an outside company manages the on-site clinic and handles all aspects of its operation for an agreed-upon monthly management fee.

It should be noted that an on-site clinic is a supplement to, but not a replacement for, an employer’s health plan. It does, however, present excellent cost-saving options for primary care as well as opportunities for switching to lower-cost health plans.

Why should you consider an on-site health care clinic for your company? Here are five great reasons:

1. Reduce Health Plan Costs
This is the most obvious benefit. The initial costs to set up the clinic and the ongoing costs of operation are usually quickly offset by savings realized through advantageous contracts with physicians, lower-cost pharmaceuticals, and fewer high-cost employee claims. It is not unusual for employers to experience drops in aggregate claims costs per employee of 10 to 25 percent in their clinic’s first year of operation.

2. Improve Employee Health
Because clinics make it so convenient to seek treatment, they are more likely to uncover illnesses before they develop into something more serious. Plus, the better on-site clinics will offer not only traditional medical services but also comprehensive wellness coaching, where the clinic staff helps employees live healthier lives and change their lifestyles. When you talk to clinic management companies, be sure to ask about the coaching component.

3. Increase Productivity
On-site clinics have consistently been proven to reduce missed work days and time off to visit off-site doctors. Add to this a healthier employee, and you can realize dramatic increases in productivity, which strengthens your bottom line. Many companies have found that their clinics have paid for themselves with the increased productivity they have realized.

4. Attract and Retain the Best Employees
It’s only natural that the best employees are drawn to the best employers. Employers that offer on-site clinic services are routinely recognized as “employers of choice” in their areas and industries. This is an unmatched employee benefit that will stand out to potential hires and go a long way in retention of current employees.

5. Boost Employee Morale
Healthier employees are happier employees. On-site clinics give them convenience, cost savings, and other benefits that greatly improve their experience at your company. And happier employees are more productive employees.

With the volatile health insurance market, employers must find unique ways to reduce costs without sacrificing employee health. On-site clinics offer a business model that not only reduces overhead but also improves employee health.

For many companies, it’s a winning proposition, and it’s one that you might want to consider for your organization.

Eric Olson is president of Novia CareClinics, LLC, a health care clinic management company based in Indianapolis. Established in 2006, Novia currently manages 21 clinics in four states, covering nearly 20,000 employees and family members. More information is available on the company’s web site, www.NoviaCareClinics.com.

To explore whether an on-site health care clinic will be beneficial to your organization—and to discuss what additional resources are available to you—contact FlashPoint.