Study Shows Employers Save 25% Through Onsite and Nearsite Wellness Centers

Onsite and nearsite wellness centers save employers an average of 25% on their employees’ and dependents’ total cost of care, a large, representative, claims-based analysis of more than 148,000 individuals shows. The study was conducted by national primary care company Premise Health and health data analytics company Cedar Gate Technologies using a methodology validated by Milliman, an internationally recognized actuarial and consulting firm. It analyzed data across 19 employers in nine industries, making it one of the largest studies ever conducted in the onsite and nearsite health care industry.  

“Employers are facing rising health care costs that are unsustainable – in fact, health care costs are now materially impacting earnings per share at most companies,” said Stu Clark, chief executive officer, Premise. “Our clinical teams intentionally build relationships with members to increase preventive care, to reduce costly emergency care and hospital admissions, and to actively navigate the member to the most efficient point of care. These validated results and the large sample size speak for themselves.” 

Employer health care costs have trended upward this year, according to the Business Group on Health 2024 Large Employer Health Care Strategy Survey. The survey reported a 6% increase in the overall trend for 2023 and 9% increase in the pharmacy-specific trend. Similar increases are expected in 2024.   

The study methodology measures total cost of care savings and calculates return on investment (ROI) for onsite and nearsite care. The use of an appropriate methodology is a critical component of accurately measuring the value that employers and risk-bearing organizations can receive through onsite and nearsite care. 

Gross savings is calculated using total cost of care, direct cost avoidance and productivity savings for members attributed to a Premise health care provider versus members who primarily seek care within their communities. Total cost of care, which represents the largest opportunity for savings, is the comprehensive medical and pharmaceutical spend for a population. In this study, claims data from Premise-attributed members show an average total cost of care savings of 25%, or $2,014 per member per year (PMPY) for their employers.  

Access to Premise’s onsite and nearsite wellness centers consistently results in increased engagement in preventive care, resulting in fewer costly hospital admissions and emergency room visits. The study showed that onsite and nearsite health led to: 

  • 39% increase in routine and preventive office visits 
  • 27% reduction in emergency room visits 
  • 36% reduction in inpatient hospital admissions 

Clark credits the accessibility of high-quality health care through onsite and nearsite wellness centers as a driving force for reduced employer health care spend. “Providing convenient primary care allows for member-provider relationships that enable health issues to be addressed earlier, ultimately leading to reduced specialty care.” 

To read the full case study of the analysis, click here.