Unlocking Savings: How Telehealth Direct Primary Care Can Reduce Healthcare Costs for Small and Large Businesses
- phoenixmedicalgroupfl
- 7 days ago
- 5 min read
In today's competitive business landscape, small business owners are continually seeking smarter ways to streamline operations and cut costs. Healthcare expenses often present a challenging area. Traditional health insurance plans can be complicated and pricey, with hidden fees that often surprise employers and employees alike. Fortunately, a growing trend known as Direct Primary Care (DPC) offers a straightforward alternative that can lead to significant savings and improved health for employees.
We at Phoenix Medical Group understand that insurance companies make a fortune off of employers offering employee benefits. We know that every time an employee uses their insurance plan to files a claim which may be for a routine doctor's visit, labs, medications etc. it adds up quickly When an insurance company reviews filled claims over the course of the year, even for a small number of claims, the employer benefit's plan will be deemed "high risk". This label causes a cascade of events including conversion of the company into a higher tiered paying bracket. Increases in an employer's out of pocket cost to offer employee benefits can make or break some companies. To simplify, the more medical claims filed annually by an employee for any care received, the more an insurance company can jack up the premium's for the following year.
Phoenix Medical Group of Florida is different though, we do not accept insurance or file claims with insurance companies. We offer comprehensive, direct primary care services to the employer at a low, flat monthly rate for their employee group. The group rate is affordable, the care is exceptional and is easily accessible. Our providers believe in reducing healthcare costs across the board. We utilize several different platforms and have the ability to negotiate lower cost prescription medications, radiology exams and labs. We even offer add-on services for the employee’s family members. . Our direct primary care model with telehealth services create a great solution to this ongoing problem. By using this model we bypass the insurance company and relieve the employer and the employee of the financial burden of traditional insurance plans.
This blog post will examine a little deeper how DPC can lower costs through preventive care, enhance employee access to healthcare, and decrease administrative burdens, ultimately benefiting small businesses and their teams.
Understanding Telehealth Direct Primary Care
Direct Primary Care is a healthcare model where patients pay a set monthly fee directly to their primary care provider. This is often offered at a reduced group rate. This fee covers many essential services, such as routine check-ups, preventive care, and telehealth consultations. By bypassing insurance companies, DPC provides a clearer and often more affordable approach to healthcare.
A study by the Direct Primary Care Coalition revealed that businesses using DPC can save up to 30% on healthcare costs compared to traditional plans. For example, a small business with ten employees paying an average of $5,000 per employee per year for health insurance could cut costs to around $35,000 under a DPC model, instead of $50,000 under traditional insurance.
Cost Savings Through Preventive Care
One of the most notable benefits of DPC is its focus on preventive care. Traditional insurance often leads to reactive care, meaning patients only seek help when they are sick. In contrast, DPC encourages regular check-ups and screenings, which can catch health issues before they escalate into costly emergencies.
Investing in preventive care can yield long-term savings. The Centers for Disease Control and Prevention (CDC) claims every dollar spent on preventive services can save up to $3 in future healthcare costs. A small business that spends $500 per employee annually on preventive care could see potential savings of $1,500 for every employee if this investment minimizes severe health issues down the line.
Increased Access to Healthcare with Telehealth
DPC increases employee access to healthcare services, allowing them to see their primary care providers without the lengthy waits typical of traditional insurance approving who they see. Without high co-pays or deductibles, employees are more likely to seek preventative care and treatment when needed.
Research published in the Journal of the American Board of Family Medicine found that patients in DPC models reported greater satisfaction and better health management compared to those with traditional insurance. When employees feel they can easily access care, they are more likely to maintain their health, leading to improved productivity.
Lower Administrative Burdens
Managing employee healthcare can be overwhelming for small business owners. Traditional plans come with complex paperwork, billing issues, and compliance challenges. DPC simplifies healthcare management by significantly reducing these burdens.
With a fixed monthly fee, businesses can easily budget for healthcare without worrying about unexpected costs. DPC providers often take care of the administrative side of patient care, which allows business owners to concentrate on their primary operations rather than getting bogged down in health insurance complexities.
Improved Employee Retention
Prioritizing employee health through DPC can also lead to higher retention rates. In a job market where employees increasingly assess benefits that support their well-being, offering DPC can help small businesses stand out.
A survey from the Society for Human Resource Management (SHRM) found that 56% of employees view health benefits as a critical factor in job satisfaction. When employees know their employer cares about their health, they are less likely to leave, resulting in lower turnover rates and the costs associated with hiring and training new staff.
The Benefits of Telehealth for Small Businesses
Integrating telehealth services into DPC offers another key advantage. Telehealth allows employees to consult with their primary care providers remotely, cutting down the need for in-person visits. This convenience is particularly beneficial for small businesses, as it can lead to increased productivity and fewer missed workdays. The employee can schedule a telehealth appointment during their lunch break, after work hours and even on holidays or weekends.
The American Telemedicine Association reports that telehealth can lower healthcare premiums by up to 20%. By including telehealth in their DPC plans, businesses can further drive down costs while providing employees with quick and convenient access to care.
Embracing Innovative Healthcare Solutions
Direct Primary Care offers a viable solution for small businesses aiming to reduce healthcare costs while fostering employee health and satisfaction. By emphasizing preventive care, enhancing healthcare access, and streamlining administration, DPC can deliver considerable savings and better health outcomes for employees.
As the healthcare landscape evolves, small businesses that adopt innovative models like DPC will be better equipped to navigate challenges. By putting employee health first, business owners can unlock savings and build a more engaged and productive workforce.
In summary, the cost savings linked to DPC and the advantage of telehealth underscore why this model makes sense for small businesses looking to bolster employee benefits while managing healthcare expenses efficiently. By embracing DPC, small businesses can pave the way for a healthier workforce and a more successful operation.
If you would like more information on how we can help you save money contact us at :
(850) 902-0475
