CASE STUDY

How an Onsite Health Center Drove $4,685 PMPY Savings for a Rural Manufacturer

This case study shows how a rural manufacturer reduced health care costs and improved chronic condition outcomes by partnering with QuadMed to deliver comprehensive onsite care. By removing access barriers and focusing on preventive, whole-person health care, the onsite health center drove stronger engagement, better outcomes, and measurable financial impact.

The Results

$4,685

PMPY savings

48%

lower health plan costs

64%

lower costs for members with diabetes

1.4x ROI

with a 2.6% annual cost trend

The Overview

Facing escalating health care expenses driven largely by unmanaged chronic conditions like
diabetes and heart disease, a rural manufacturer found itself grappling with
increased absenteeism, frequent emergency room visits, and soaring prescription drug costs.

The financial strain was tangible, but equally concerning was employee dissatisfaction with
their existing medical services and wellness programs. With limited access to high-quality care, the company needed a better approach to employee health—one that focused on preventive, comprehensive care.

The Solution

In 2019, the employer partnered with QuadMed to launch an onsite health center tailored specifically to address these challenges head-on. QuadMed’s solution wasn’t just about reducing immediate costs; it was about transforming health care delivery through forwardthinking, whole-person care in a community where resources were otherwise scarce.

Key highlights of the QuadMed health center solution included:

Expert Staffing

  • An onsite physician (MD), required by state regulations for pharmaceutical dispensing, helping dramatically reduce prescription expenses

  • Specialized wellness and condition management teams, including a dedicated Certified Diabetes Care and Education Specialist (CDCES), providing personalized, ongoing support

Comprehensive Care Services

  • Full-spectrum primary care delivered conveniently at the workplace, eliminating the need for employees to take time off or travel long distances for routine or chronic care

  • Onsite pharmaceutical dispensing, occupational health services, targeted condition management programs, flu vaccinations and lab tests in one accessible location

  • Strategic referrals to top-tier specialists and hospitals, ensuring high-quality, coordinated care

Smart Benefit Design That Drives Engagement

  • A benefit plan designed to encourage early and frequent engagement, with $0 preventive visits and $10 non-preventive visits at the onsite health center—less than half the $25 copay at local community practices

The Results

QuadMed’s onsite health care model delivered powerful, measurable results that improved employee health while strengthening the company’s bottom line.

Financial Impact

  • 48% lower health plan costs for members engaged with the onsite health center

  • $4,685 per member per year (PMPY) savings in health care expenses for engaged members

  • Engaged members with diabetes averaged $9,153 in annual health plan costs—64% lower than the $25,446 average for non-engaged members with diabetes

  • 1.4x ROI, demonstrating clear financial value

  • Annual cost trend limited to 2.6%, well below the national average of 8.5%

Employee Health & Satisfaction

  • 86% of engaged members with diabetes maintaining healthy A1c levels

  • Increased adherence to preventive care and evidence-based guidelines

  • High member satisfaction driven by quality of care, convenience and strong provider relationships

Access & Utilization

  • A high-quality, compassionate care team rooted in the local community, building trust and long-term engagement

  • Longer visit times and continuity of care supporting deeper relationships and better health outcomes

  • The Healthy Rewards program incentivizing annual physicals, women’s well exams, cancer screenings and flu vaccinations to boost preventive care engagement

  • Accessible pricing and a convenient location driving consistent utilization, particularly for preventive services and chronic condition management

A Clear Path to Savings and Better Health

QuadMed’s holistic approach to onsite health care did more than control costs—it delivered high-quality, affordable and accessible care to a rural workforce that needed it most. The result was a healthier, more engaged employee population and sustainable improvements in both health outcomes and cost savings.

 

Learn more about how we can achieve these results for your population.