Demonstrated Savings
The savings produced by each clinic may vary significantly due to differences in health plan design, workforce demographics, or the type of business.
Even so, our experience has shown that the savings produced by WeCare TLC clinics are consistent, resulting from carefully constructed (but easily understood) mechanisms and management practices. Higher routine costs (for primary care office visits, drugs and laboratory tests) in the health plan network are replaced by lower costs in the clinic. Influence over the care that is delivered outside the clinic reduces unnecessary or inappropriate utilization in specialty and inpatient settings. The results are demonstrably significant cost reductions in health plan costs. Even more powerful savings typically accrue as well in workers compensation, human resource testing (like drug screening and Department of Transportation examination costs), recruitment, retention, presenteeism and lost productivity.
Here are three WeCare TLC case studies. Performance is consistent despite the differences in the work of the employers or the demographics of the employees. The numbers make clear the scalability of the model. Actual numbers are compared to national health care inflation trend data obtained from Milliman, Inc., showing that, on average, premiums rose 9.6% in 2006, 8.4 % in 2007 and 7.6% in 2008.
Example One: Small Self-Funded Employer
Small administrative services office with 62 employees + families. Clinic is open 5 hours/week. 3 years experience. Employer moved to a High Deductible Health Plan with Health Savings Account arrangement.
Since the establishment of the clinic, costs have remained stable, with 4.5% total cost growth over three years. Compared with the Milliman data (above) on expected premium increases, this client saved about $119,000 on 62 employees from its baseline in Year 1.
Example Two: Rural Manufacturer
Factory with 222 employees + families in a rural community. More than two years of experience at this point.
In Years 1 and 2 following implementation of the clinic, overall health plan costs dropped 26% and 7%, respectively, while national premium inflation continued to rise by double digits. Again, the Milliman average trend values shows that this firm spent about $1.13 million less with the clinic that it probably would have without it.
Example Three: Local Government
Municipality with 1,200 employees + families. Report from client analysis on first 6 months of operations, beginning 7/02/07.