Direct Care: A Win-win for Employers & Their Staff
One of our clients, Direct Med Clinic, based in San Antonio, TX, who has relationships with several employers, conducted a study of one of its employers showing the value of direct care for employers and their staff including a cost savings of $734,882 over a period of one year.
The opportunity of direct care for employers goes beyond insurance cost savings but leads to increased doctors visits by employees for preventative care, resulting in decreased health issues and better management of chronic health conditions.
We sat down with Dr. Roger Moczygemba, CEO & Founder of Direct Med Clinic to get more insights on the report. Dr. Moczygemba states, “What we are doing in direct primary care [is] realigning healthcare to be what it was designed to be like it was at the very beginning, that is between the doctor and the patient.”
Most healthcare costs in the U.S. are covered by employer sponsored insurance plans and via insurance these costs are astronomical but it doesn’t have to be this way. Dr. Moczygemba argues that employers are better served and consequently so are their employees by contracting directly with clinics. Insurance still has utility for a higher level of care and hospitalizations.
“We all have insurance on our cars, but we don’t use the insurance to change the wiper blades or change the oil, right? If we did, it would be so expensive.” - Dr. Roger Moczygemba
Workers' compensation cost savings represent a bulk of the total savings in this Employer Clinic Report. According to the National Safety Council (NSC), the average work injury claim costs employers $42,000 per work injury. This particular employer had 10 cases of work injury claims and avoided having to rely on insurance to treat their employees resulting in a savings of $420,000.
Dr. Roger Moczygemba reflects on his responsibility to employer clients, “In the direct care relationship, the employer is paying me to take care of the injured workers, so I’m going to be accountable back to the employer.” When insurance comes into play, however, the treating doctor is paid by the insurance company and therefore isn’t accountable to the employer, which often incentivizes healthcare providers to prolong treatment plans.
Beyond workers comp, the next biggest cost savings was labs because employers are contracting directly with, in this case Direct Med Clinic, and avoiding the added cost layers tacked on by insurance, producing a total savings of $102,276. The third largest cost savings was represented by the number of urgent care visits avoided, 348 resulting in a savings of $46,680.72.
Dr. Roger Moczygemba continues, “When an employer understands that if they can pay for the medical care directly out-of-pocket that they will save money by doing that then we will find places where they can go for imaging, and for therapy, and even surgery and get that done for a reasonable price.” He quotes a savings of up to 70% which doesn’t include the savings of increased health insurance premiums.
Another important highlight in Direct Med Clinic’s report is the increased utilization by employees and their dependents. The national average for annual doctor’s visits is 1.6 whereas employees in this study’s average was 6.5 and for their dependents 3.5, all at a fraction of the cost of the traditional model. In today’s climate, putting the health of people at the center is paramount and Direct Med Clinic is proud to champion the direct care movement with employers and consequently saving lives.
Healthcare is affordable while health insurance is outrageously expensive and direct care is a proven model to get quality, affordable care. Direct Med Clinic’s report shows how the increased use of the clinic decreased the employer’s need for using insurance. Dig into the data by downloading, Direct Med Clinic’s 2021 Employer Clinic Report.
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