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Worksite Health Centers May Yield Savings for Employers

Worksite health centers (WHCs)—employer-sponsored clinics located at or near workplaces and providing health services directly to employees—can help companies to reduce healthcare costs and improve productivity, reports an evidence review in the April Journal of Occupational and Environmental Medicine. 

"We found that in most studies, WHCs produced cost savings and yielded significant returns on investment," comments lead author Hanzi Jiang, MPP, of Northwestern University Feinberg School of Medicine, Chicago. In a systematic review, the researchers analyzed data from ten studies evaluating the economic outcomes of US-based WHCs. 

The WHCs in the study provided primary care services to employees alone or to employees and dependents. Representing varied industries, the companies ranged in size from fewer than 1,000 to greater than 14,000 employees.

In nine of the ten studies, "WHCs provided positive economic benefits from the perspective of employers," the researchers write. Total annual savings (in 2024 dollars) ranged from $35,000 to $2.1 million per WHC. Return on investment (ROI) ranged from $1.09 to $15.88 per dollar invested. There was also evidence of improved productivity: one study estimated that employees using the on-site WHC missed 3.3 fewer work days.

Factors contributing to higher ROI included larger company size, greater use of services, and longer duration of WHC operations. In one study, a ten percent increase in WHC use was associated with a 35% increase in ROI.
Worksite health centers are an increasingly popular approach for employers seeking innovative ways to contain rising healthcare costs. "Despite this growth, questions regarding the economic benefits of implementing WHCs remain unanswered," according to the authors.

The new analysis supports economic benefits of WHCs, including reduced direct and indirect health costs. "WHCs are emerging as a promising option for employers to manage healthcare costs and promote employee health and productivity," Ms. Jiang and coauthors write. They call for further studies to explore factors contributing to the cost savings, as well as clinical effectiveness and employee satisfaction with the care provided by WHCs.
 
About the Author
Ms. Jiang may be contacted for interviews at Hanzi.jiang@northwestern.edu