Employer Healthcare Strategies


Towers Watson: Employers Set to Expand On-Site Health Clinics

Posted by Tatum Pettrey on July 1, 2015

sumall_shipping_box_airmail_parachuteWith rising healthcare costs and a Cadillac tax coming in 2018, employers are expected to make bold changes to their health plans in an effort to battle increasing costs and avoid exorbitant taxes.

According to a survey conducted by Towers Watson, 4 out of 10 companies have on-site clinics, and 66 percent of 120 respondents have plans to expand or enhance the services that they offer in on-site health clinics by 2018.

Moreover, these employers are taking the right initiative and growing beyond primary care into different amenities, such as pharmacy services.

The services that most on-site health clinics offer are relatively similar. The survey found that nearly all clinics administer immunizations, care for acute conditions, and conduct blood draws.

Many employers also share specific objectives for their clinics. These include, but are not limited to:

  • Increasing productivity (75%)
  • Reducing healthcare costs (74%)
  • Improving the convenience for employee access to healthcare services (66%)

Nearly half of employers that sponsor on-site or near-site clinics have two to five clinics and are extending the hours of those clinics and incorporating telemedicine.

The Value of On-Site Health Clinics

The progress being made by employers to ensure an easier and more cost-efficient route to healthcare must continue in order to compete with the traditional fee-for-service medical world and the rising cost of healthcare. As time goes by, more employers are placing heavy emphasis on measuring their clinics return on investment (ROI). But that being said, financial ROI isn’t the only important thing to consider.

The greatest value of an on-site clinic is the treasured fact that doctors will not only focus on the reason patients scheduled their appointment, but other acute or chronic health issues. It is also important for on-site providers to:

  • Risk Identification: On-site health clinics assess and stratify the employee population through Personal Health Assessments and biometric screenings in order to identify risks, which leads to cost-saving opportunities.
  • Reduction in Emergency Room and Specialty Costs: Because of the convenient barrier-free access to primary care offered by on-site and near-site clinics, the number of unnecessary emergency room visits and specialty referrals is drastically reduced. The amount of time and money that is saved by reducing the number of future appointments is a valuable aspect of this model.
  • Proper Incentive Alignment: The delivery of primary care is repositioned with salaried providers who are incentivized by improved health outcomes instead of patient volume or coding levels. This shift allows the provider adequate time to build a trusting relationship with the patient to ensure greater compliance in their care.


As on-site clinics continue to grow, so do the services that they offer. The convenience as well as the cost savings are great benefits that these clinics can provide for employers and employees.

The various amenities provided by this model not only keeps employers happy, but it also keeps employees and their families on the best possible path to improved health.

on-site clinics - CareATC
Tatum Pettrey

About The Author

Tatum Pettrey

Tatum is a former CareATC marketing intern. She graduated from the University of Arkansas.