Lacks Enterprises decided in January 2014 to open two health care clinics for their 5,161 employees and dependents. One year later, the company reported a 35 percent decrease in employee payroll contributions. Employees are now more actively managing their health and well‑being, a trend that can benefit other employers considering on‑site care.
The Lacks Enterprises Health Clinic Story
In 2012 and 2013, Lacks Enterprises discovered that its cost per employee was rising largely because of healthcare costs. The Grand Rapids, Michigan company decided to open two primary care clinics to curb costs and improve worker health.
The Clinics See Results
The clinic met its goals and more. In 2014 the Lacks Enterprises health clinic saw 680 patients and diagnosed 2,607 chronic conditions.
The company also curtailed rising healthcare costs and realized a decrease in absenteeism, while employees gained simpler access to primary care.
Employee benefits
- The 35 percent payroll deduction for healthcare costs is gone thanks to the clinics and HSA high‑deductible insurance plans that link wellness participation and HSA contributions.
- Fifty‑two percent of Lacks employees who use the clinics report more holistic treatment options and more time with the doctor.
- Over 1,500 patients received a preventative health assessment, and 41 percent of those patients returned for follow up.
- Up to 83 percent of patients waited less than 10 minutes for their appointments.
Operations and partners
Lacks Enterprises clinics are open Monday through Friday with some extended weekday hours. CareATC, an Oklahoma healthcare company, manages the clinics' day‑to‑day operations and uses data analytics and technology to identify employees with chronic conditions and improve employee health.
The company coordinates with a local network provider and third‑party administrators who handle outreach, specialty services and claims. For broader context on how workplace programs affect costs and coverage, see Workplace Health, Employee Wellness, and Insurance Impacts.
If your company is weighing on‑site care, this model shows potential savings and improved employee engagement. For more about employer clinics and wellness program models, see Employer-sponsored on-site clinics and workplace wellness programs.
If your company could benefit from decreased healthcare costs and improved employee health, talk to your human resources manager about whether an employer‑sponsored clinic makes sense for your workforce. Employer‑sponsored health clinics can provide easier access to primary care and preventive services.
Frequently Asked Questions
Who can use an employer-sponsored clinic?
Typically employees and their dependents covered by the employer’s plan can use on‑site clinics, though specifics vary by employer.
Do on-site clinics replace health insurance?
No, on‑site clinics usually provide primary care and preventive services and work alongside traditional insurance and referral networks for specialty care.
How do clinics help control employer costs?
On‑site clinics can reduce outpatient costs, improve chronic condition management, and lower absenteeism, which together help control overall healthcare spending.