How on-site employer health clinics can affect employer bottom line performance

How on-site employer health clinics can affect employer bottom line performance December 11, 2017

Employers who invest in on-site health clinics realize returns in terms of reduced absenteeism and presenteeism (employees showing up for work even though they are ill) as well as in terms of a healthier, more productive workforce. Employers may realize an additional benefit for their bottom line, as a correlation has been shown to exist between offering healthcare programs and investment value.

Though the precise return on investment (ROI) for on-site employer health clinics has been challenging to measure, many companies are seeing results and the number of clinics is increasing. Employers see positive results, for example, when offering the on-site clinic as a benefit to recruit and retain quality employees.

A recent article published by News Medical reports on studies that show a correlation between employers that offer “outstanding health and wellness programs” and their financial performance. According to the article, the studies “provide evidence that effective health promotion programs favorably affect a company’s stock valuation.”

The studies gauged financial results against the returns on investment seen by companies on the S&P 500. One study “evaluated a strategy of investing in winners of the C. Everett Koop Award, which promotes employer achievements in improving population health cost-effectively.” The results of that study showed that investing in these companies over the course of ten years, “yielded about $22,000 more in returns, compared to the S&P 500.”

Another study looked at “a strategy of investing in companies that scored high on the ‘HERO’ Scorecard—reflecting implementation of evidence-based workplace health promotion programs.” That assessment showed that over a course of six years, “stocks in the HERO portfolio appreciated by 235 percent versus 159 percent for the S&P 500.”

These studies do not indicate that when an employer offers healthcare at an on-site clinic, it will directly result in that company’s increased investment offerings; however, the indication is that companies that offer such a benefit do have an overall sound financial strategy and may be healthier overall than those who do not.