Companies Not Fully Tapping Potential of Onsite Health Centers

WASHINGTON, March 19 /PRNewswire-FirstCall/ — High health costs and a renewed focus on worker productivity have led an increasing number of companies to open onsite health centers in recent years. However, few companies fully tap the potential of these centers, according to Watson Wyatt, a leading global consulting firm.

Nearly one-third of companies (29 percent) have or plan to have an onsite health center by 2009, up from 27 percent in 2006, according to Watson Wyatt/National Business Group on Health research. A separate Watson Wyatt study of 84 companies with onsite health care centers found that reducing medical costs was the chief reason 70 percent of companies have opened a center since 2000 (recent adopters). Only 49 percent of companies that adopted health centers before 2000 (early adopters) did so due to cost. More early adopters (54 percent) opened a center to address occupational health.

“Although their primary motivation may be changing, more employers are operating onsite health centers as part of their overall health and productivity strategy,” said Marne Bell, senior health care consultant for Watson Wyatt. “Yet, surprisingly many do not have a good handle on whether these centers are producing the desired return on investment.”

Nearly half (45 percent) of companies cite inadequate measures of performance as the top challenge in operating the centers. Integration of the health center with a company’s other health and productivity initiatives and data also remains a challenge.

   Measurement is the top challenge for companies with onsite health centers                     Challenge                       Employers cite                                                   among top                                                   challenges (%)                   Inadequate measures of                    performance                        45%                   Less than ideal location            23%                   Lack of integration with                    health and productivity                    programs                           19%                   Lack of integration with                    local medical providers            17%                   Lower than expected                    utilization                        17%                   Higher utilization for “self                    care”                              10%                   No challenges indicated             26%   

Most companies do not link their data to medical claims (41 percent of recent adopters and 58 percent of early adopters). Nearly one-fifth do not store their data electronically (19 percent of recent adopters and 16 percent of early adopters). Further, only 39 percent of companies integrate disease management programs with their onsite health centers and only 30 percent connect them with a nursing hotline.

“As onsite health center services grow more comprehensive, linking the center with a company’s full range of health and productivity initiatives promotes more efficient care management and can create a competitive advantage,” said Bell.

   Other findings:     — Preventive services such as immunizations and screenings are the most      common offering among recent adopters of onsite health centers      (81 percent). Mental health counseling is more than three times as      common among early adopters (46 versus 15 percent). Physical therapy      is twice as prevalent among early adopters (44 percent versus 22      percent). However, recent adopters are nearly twice as likely as      early adopters to offer pharmacy benefits (44 percent versus 23      percent).    — Nearly all (96 percent) of employers make onsite health center      services available to employees enrolled in their health plan. Nearly      three-quarters (71 percent) of companies provide services to      part-time employees, even those not eligible to participate in the      health plan. Only 25 percent of organizations offer clinic services      to covered dependents and just one-fifth (20 percent) of retirees are      offered access to the center.   

More information on the 2007/2008 Onsite Health Center Survey of 84 large companies is available at http://www.watsonwyatt.com/onsitehealthcenters.

About Watson Wyatt Worldwide

Watson Wyatt is the trusted business partner to the world’s leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,000 associates in 32 countries and is located on the Web at http://www.watsonwyatt.com/.

Watson Wyatt Worldwide

CONTACT: Ed Emerman, +1-609-275-5162, eemerman@eaglepr.com, for WatsonWyatt; or Steve Arnoff of Watson Wyatt, +1-703-258-7634,steven.arnoff@watsonwyatt.com

Web Site: http://www.watsonwyatt.com/