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1
On-Site Medical Clinics: Perks or Productivity Boosters?
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
www.ibscdc.org
1
On-Site Medical Clinics: Perks or Productivity Boosters?
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