How Direct Healthcare Reduces Employee Absenteeism and Boosts Productivity 

No one likes a sick day – especially an employer. Unfortunately, health-related employee absenteeism is a common obstacle facing many organizations. In the United States, employers face an estimated $226 billion annually in absenteeism costs, approximately $1,695 per employee, according to The McKinsey Health Institute. These sky-high costs are largely fueled by chronic health conditions that could be reduced through preventive care and wellness programs.  

For employers, employee absences mean a decline in workplace productivity, greater time spent handling absence-related administration, and, depending on the industry, extra costs for substitute workers. Not to mention the fact that when employees are absent, co-workers and supervisors often have to pick up the slack. Every sick day costs your business more than just lost work hours: it impacts team morale, workplace productivity, and your bottom line. Fortunately, investing in employee health through direct primary care can reduce absenteeism and boost overall workplace performance. 

The Connection Between Health and Workplace Productivity 

Better health leads to better productivity. When chronic conditions or illnesses go unaddressed, absenteeism and presenteeism — when employees are at work but not performing at their best — tend to rise. This loss in productivity is pricey. For every dollar spent on healthcare benefits, another $0.61 is spent on illness-related absence, disability, and reduced work output, according to the Integrated Benefits Institute. 

Preventive care plays a critical role in reversing this costly trend. By encouraging routine screenings, early intervention, and ongoing care management, employers can help team members stay healthier and catch potential issues before they become serious and require expensive interventions. Investing in preventive care not only reduces sick days and healthcare expenses but also creates a more engaged, energized, and resilient workforce. 

How Direct Healthcare Reduces Employee Absenteeism 

Direct healthcare is a powerful solution for addressing employee absenteeism and improving overall workforce health. Unlike traditional healthcare models that rely on fee-for-service payments, direct healthcare often follows a value-based payment model, not volume-driven. That means the provider is held accountable to health outcomes. In other words, the direct healthcare company’s goals and the client’s goals are fully aligned, as both organizations work together to improve members’ lives. This healthcare model leads to higher rates of primary care utilization, fewer instances of hospitalization, and lower total costs. 

Some benefits of direct primary care include:  

• Same-day or next-day appointments – Quick access to care helps employees address health concerns before they worsen, reducing the likelihood of extended absences and improving overall wellbeing. 
• Longer provider visits – Extended appointment times allow providers to dive deeper into members’ needs, build stronger relationships, and create personalized care plans that lead to better outcomes. 
• Focus on prevention – Regular biometric screenings, wellness check-ins, and proactive health management are integral elements of advanced primary care. These practices help identify issues early, keeping employees healthier and minimizing time away from work. 
• Care navigation – Dedicated care navigators help employees quickly schedule specialist appointments, coordinate follow-ups, and identify high-value facilities when they have a referral. By removing these administrative hurdles, employees save time and avoid sick days. 

Together, these elements create a healthier, more engaged workforce.  

Investing in Employee Health Pays Off 

Investing in employee health doesn’t just improve wellbeing; it has a measurable impact on attendance, workplace productivity, and overall business performance. Healthier employees have fewer costly emergency room visits, return to work more quickly after illness or injury, and benefit from proactive management of chronic conditions that might otherwise lead to extended time away from work. 

Organizations that prioritize employee wellbeing also see financial benefits. Research shows a strong connection between wellbeing and stock performance: a hypothetical “Wellbeing 100” portfolio, made up of the 100 companies with the highest employee wellbeing scores according to Indeed, has significantly outperformed major stock market indexes since early 2021.  

Real-world results reinforce this connection. Occupational health clients that partner with Premise Health, a direct primary care provider, have achieved a 52% lower OSHA-recordable incident rate, meaning fewer workplace injuries, reduced absenteeism, and a more consistent, healthy workforce.  

Q&A: Your Top Direct Healthcare Questions, Answered 

Q: What is direct healthcare? 

A: Direct healthcare is care that an organization purchases and provides access to healthcare services contracted with the employer, without the requirement to go through an insurance carrier. While in a traditional healthcare setting where most services are at least partially paid for and directed by an insurance carrier, direct healthcare bypasses this intermediary and directly serves organizations and their members. Typically, the purchasing organization is a large self-funded employer or an aggregating entity such as an association, trust, Taft-Hartley plan, or labor union. 

Q: What are the benefits of direct healthcare for self-funded employers? 

A: For self-funded employers, direct healthcare offers greater control over costs, quality, and access. By removing third-party intermediaries and aligning incentives through a fee-for-value model, employers can reduce overall healthcare spend while improving health outcomes. 

Q: How does direct healthcare reduce employee absenteeism? 

A: Direct healthcare reduces employee absenteeism by making it easier for employees to access timely, preventive, and personalized care. With same-day or next-day appointments, longer provider visits, and a focus on prevention, employees can address health issues before they become serious or require time away from work. Care navigation further streamlines referrals and follow-ups, minimizing administrative delays. Together, these elements keep employees healthier, more engaged, and consistently present at work. 

By investing in direct healthcare, self-funded employers experience tangible reductions in absenteeism, improved workforce engagement, and stronger overall performance. Healthier employees are simply more productive employees. 

Ready to transform your organization’s approach to employee wellness? Learn more about how Premise Health can partner with your team to reduce absenteeism and enhance productivity. Contact us today to get started.