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CASE STUDY

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

This case study details how bringing coordinated, whole-person primary care onsite led to measurable cost reductions, better chronic condition control, and higher patient satisfaction for a rural manufacturer through faster access, longer visits, and integrated care.

The Results

48%

lower health plan costs for members engaged with the onsite center

$4,685 PMPY

savings in health care expenses for engaged members

1.4× ROI

demonstrating clear financial value

86%

of engaged members with diabetes maintaining healthy A1c levels

The Challenge

Facing escalating health care expenses driven largely by unmanaged chronic conditions like diabetes and heart disease, a manufacturer in rural Kentucky 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

Transforming care through an onsite health center

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 forward-thinking, whole-person care in a community where resources were otherwise scarce.

Key Components of the Solution

Expert Staffing

  • An onsite physician (MD), essential by state regulations for pharmaceutical dispensing, to dramatically reduce prescription expenses.

  • Specialized wellness and condition management teams, including a dedicated Certified Diabetes Care and Education Specialist (CDCES), to ensure 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 — all in one accessible location.

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

Benefit Design That Drives Engagement

  • The benefit plan was designed to encourage early and frequent engagement: preventive visits at the onsite center were $0, and non-preventive visits were just $10 — less than half the $25 copay charged at local community practices.

The Results

Outcomes that matter

The impact of QuadMed’s onsite health care model was powerful and measurable, significantly
benefiting both employee health and the company’s bottom line:

Financial Impact

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

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

  • Engaged health center members with diabetes averaged $9,153 in annual health plan costs — 64% lower than the $25,446 average among 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 patient satisfaction due to quality of care, convenience, and strong provider relationships

Access & Utilization

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

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

  • The “Healthy Rewards” program incentivized participation in annual physical exams, women’s well exams, cancer screenings, and flu vaccinations, boosted engagement and preventive care

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

A Clear Path to Savings and Better Health

QuadMed’s whole-person approach to onsite health care did not just control costs — it delivered high-quality, affordable, and accessible care to a rural workforce that needed it most. The result: a healthier, more engaged employee population, delivering tangible results and sustainable improvements in both health outcomes and cost savings.

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