If you have 12 months or more of historical health plan claims data, you can easily estimate the impact that a WeCare TLC clinic will have on your health-related costs. Below we have listed impacts that are consistent with our experience across clinics.

Health Plan Costs
Primary Care Office Visits
About 2/3 of your employees and their family members will visit the clinic during its first year of operation, so health plan costs for primary care visits will drop by about 66%.

Wellness Physicals
About 80% of wellness physicals may be performed in the clinic. Take the number of wellness physicals you are current conducting times the cost you are currently paying. Multiply by 0.8. The total will be the savings.

Specialty Care Office Visits
Some enrollees will need to be referred for specialty care during the course of the year. We have seen specialty visits decrease 50% with an on-site clinic due to a decrease in self-referrals which result when employees have a medical home.

Employer Savings . Annual dollars spent times 50%. This will result from a reduction in unnecessary specialist visits, and more efficient specialty care when it occurs from increased collaboration with the primary care physician.

Employee Savings . Again, calculate the number of specialty care office visits times the co-pay times 50%.

Pharmacy
Assuming your plan uses a drug card with the usual three- or four-tier deductible arrangement, you can reasonably expect to reduce your drug costs by 55%.

Outpatient Laboratory
Figure 85% of your total annual outpatient laboratory cost will be eliminated. You can arrange for the laboratory tests of patients seeing network physicians to be handled through the clinic.

Lifestyle Counseling
We conservatively estimate a 2:1 return on investment in disease management/lifestyle counseling services. The costs of those services are comprised of the cost of salary in a registered nurse plus $2 per employee per month.


Health Plan Benefit Changes
Typically, your plan administrator should be able to provide claim reduction estimates that would result from:


Human Resource Testing Costs
Drug Testing Costs
WeCare TLC's cost for pre-employment and random drug screening is $15.00 per test. To project savings, estimate the number of expected tests over the next year at your current cost, minus the cost to perform the test through the clinic.

Pre- and Post-Employment Physical Examination Costs
These can be performed in the clinic. Your current expenditures on these physical exams can be recovered as savings.


Workers Compensation Medical Costs
Workers’ Compensation Medical Visit Costs
Assume that 65% of your annual medical visit costs can be saved.


Productivity
Costs of Lost Work Time for Primary Care Office Visits
Assume 5 hours lost for an offsite office visit versus 1 hour lost for an onsite clinic visit, for a four-hour difference per office visit. Assume that 2/3 of employees will use the clinic during Year 1, and that each will have 4.5 office visits. Multiply this number times the firm’s average hourly wage.

Recruitment/Retention Costs

Conservatively assume you can reduce current turnover by 20%. Multiply that number of positions by average recruitment and training expense.