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Case Title:

On-Site Medical Clinics: Perks or Productivity Boosters?

Publication Year : March 2009

Authors: Raghava Krishna Nethi, Saradhi Kumar Gonela

Industry: Health Care

Region:US

Case Code: HRM0045

Teaching Note: Available

Structured Assignment: Available

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Abstract:

This case study helps in analysing how companies can derive benefits from a mandatory cost to enhance savings. The case also helps in understanding the importance of On-Site clinics in the era of exorbitant medical costs, ever escalating healthcare-related expenses of the employees and companies and enables a discussion on whether this model is sustainable. Or will it meet the fate of its predecessor – the Company Doctor, abandoned during 1960s.

For many observers, ‘On-Site’ medical clinics are the refined version of Company Doctor – a practice that has long been out fashioned by high maintenance costs. However, for the HR executives, ‘On-Site’ medical clinics are a novel concept that improves the morale of the employees and for top managers, this is a cost item which has the potential to boost revenues. However, in essence, it is a basic healthcare facility provided by the companies to employees and their dependents in the factory premises. Companies through setting up On-Site medical clinics want to control the soaring medical costs, improve the productivity of the employees besides enhancing the quality of treatment for the employees. The On-Site medical clinics model provides better returns for the companies on employee health-related investments compared to any other existing model. Some healthcare experts advice that On-Site medical clinics should not be confined only for controlling the medical costs and improving the productivity of the employees but also focus on improving personal health and creating community awareness on disease prevention and management. This model, hailed by one and all, however, has its Achilles Heel – safety and security of employees’ health records from the managers. The possibility of managers using personal medical records of employees for undue benefits can neither be ruled out nor can be overlooked.

Pedagogical Objectives:

  • To analyse the significance of On-Site medical clinics to the companies in the times when medical costs are ever increasing in the US
  • To analyse how the On-Site medical clinics reduce the medical costs and improve the productivity of employees
  • To debate whether On-Site medical clinics model will be a successful Healthcare model or it will be withdrawn like Company Doctor.

Keywords : On-site Medical Clinics, On site clinics, Company Doctors, Health Insurance, Employee Health, Medical Costs in the US, Outsourcing Healthcare Management

Contents:

  • Circumstances that Led to On-Site Medical Clinics
  • US Healthcare System: An Overview
  • An Overview of On-Site medical clinics and its Benefits to Companies
  • In-Store Clinics – A New Concept

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