Creating on-site and near-site clinics is a cost-containment strategy that allows employers to offer medical and wellness services at clinics that are located either directly at or nearby their companies. These clinics are often included in employers’ health benefits packages, offer care at a lower cost than other facilities, and encourage employees to use preventive care more often since they are conveniently located.

The key objective behind these clinics is to employees with primary care services more frequently to catch illnesses early, preventing progression of illness. On-site and near-site clinics serve as an entry point into the healthcare system that allows health plans and employers to have more control over the patient journey. Clinic providers can refer patients with specialty care needs to preferred, high-value sites of care, therefore decreasing potential downstream costs.

Employer-sponsored insurance costs are climbing rapidly, and over 90% of employers consider managing healthcare benefits costs their top priority over the next two years. Cost-sharing strategies aren’t driving sufficient cost-savings, and employers and plans are looking for new, innovative strategies. More than ever, employers are seeking ways to rein in spend while keeping employees happy.

While on-site and near-site clinics can help with cost savings and employee satisfaction, they involve significant administrative burden. Employers must manage legal compliance issues, market the clinic to encourage utilization, and operate benefits in a new hybrid workplace. These factors, along with the high start-up costs, mean on-site and near-site clinics aren’t right for every employer.