Employers Take a New Approach to Healthcare: Cutting Costs, Boosting Productivity

A growing number of employers, like Phifer Incorporated in Alabama, are experimenting with an innovative approach to healthcare: providing medical care directly to employees through on-site clinics. This strategy has resulted in significant cost savings and improved employee health and productivity.

Key Takeaways:

• Phifer Incorporated, a manufacturing company in Alabama, has established a medical clinic for its employees, where no one gets a bill, not even for prescriptions.
• The clinic's cost-saving strategy involves directing patients to higher-quality specialists in hospitals, which can save patients and the company money.
• In just five years, Phifer's healthcare costs have declined, allowing the company to open a free summer camp for employees' kids and allocate more money to retirement plans.
• About 90% of Phifer's employees are now hitting their retirement goals, up from around 75% before the clinic was opened.
• Patients like Ronald Lewis have reported significant savings, with one patient saving over $3,000.
• Employers like Phifer are considering investing in similar on-site clinics to reduce healthcare costs and improve employee well-being.

Statistics:

• The national average for deductibles is over $1,500 per year, largely due to hefty cost-sharing.
• Approximately 100 million people in the US have healthcare debt, primarily due to high out-of-pocket costs.
• Phifer's healthcare costs have declined by an undisclosed amount over five years.
• 90% of Phifer's employees are now meeting their retirement goals, a significant increase from 75% prior to the clinic's establishment.

Sources:

• BYLINE: NOAM LEVEY HOST: SCOTT SIMON
• Interview with Russell DuBose, HR director at Phifer Incorporated
• Interview with Heath Hendrix, Phifer employee
• Interview with Jerry Wheat, Phifer employee and production lead
• National average deductible data cited in the show