Site of Care Optimization: How Employers Can Help Employees Get the Right Care at the Right Cost
Where employees receive healthcare can have a significant impact on what they, and their employers, pay for that care. The same service can cost different amounts depending on the site of care, even when the quality of care is comparable.
For employers trying to manage rising healthcare costs, using right site of care strategies can help employees make more informed decisions and reduce unnecessary healthcare spending.
The goal isn’t to limit access to care. It’s to help employees understand their options and choose the right care at the right place.
Here are four ways employers can encourage smarter site-of-care decisions.
Use Primary Care Instead of Urgent Care or the Emergency Room When AppropriateThe emergency room is an essential resource for emergency medical attention. But it isn’t the best place for non-emergent healthcare needs. Similarly, urgent care can be useful when an issue needs prompt attention but doesn’t require emergency services. However, it shouldn’t replace an ongoing relationship with a primary care provider. For many routine or non-emergency healthcare needs, primary care should be the first stop. Primary care providers can help employees:
A strong primary care relationship can also help employees navigate the healthcare system more effectively. Instead of going directly to an urgent care center or emergency department, employees have a healthcare professional who understands their medical history and can help determine what care they need. Employers can support right site of care utilization through benefit design, employee education, and care navigation tools. The objective isn’t to discourage employees from seeking care. It’s to make sure they know where to go based on the urgency and complexity of their healthcare needs. |
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Choose Independent Providers and Lower-Cost Sites of CareHospitals aren’t the only place employees can receive many healthcare services. For services such as imaging, infusion therapy, independent providers and alternative sites of care can offer great quality services at a lower cost. For example, an MRI performed at a hospital outpatient department may cost substantially more than an MRI performed at an independent imaging center. Similarly, some infusion services can be safely delivered in independent infusion centers rather than hospital-based settings. Consider Ambulatory Surgery CentersFor appropriate outpatient procedures, ambulatory surgery centers (ASCs) can provide an alternative to hospital outpatient departments. ASCs are designed specifically for outpatient surgical care and can often provide certain procedures at a lower cost than hospital-based settings. However, not every patient or procedure is appropriate for an independent provider or ASC. The right site of care approach depends on the patient’s medical needs, the procedure being performed, and the provider’s recommendation. The goal is to make sure employees know they have choices. |
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Compare Costs Before Scheduling CareSome healthcare services are “shoppable,” meaning they are predictable and can be scheduled in advance. Shoppable services include:
When care can be scheduled, employees have an opportunity to compare providers and prices before receiving the service. That can make a meaningful difference. The Alliance’s Smarter Care AdvisorSM and Find a Doctor tools can help employees compare options based on network status and available benefit plan and cost information. Instead of accepting the first provider recommendation or going to the facility they have always used, employees can take a moment to ask:
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Use Preferred-Value Providers and Your Benefit PlanEmployers can make right-site-of-care decisions easier by incorporating them into their benefit plan design. For example, employers may offer no-cost or low-cost care when employees choose designated Preferred-Value Providers. When employees can receive appropriate care with little or no out-of-pocket cost, the benefit plan creates a financial incentive to consider value when making healthcare decisions. This is an important distinction because it is more successful to give employees a reason to consider choosing high-value healthcare options than it is telling them where to go. |
How Employers Can Build a Right-Site-of-Care Strategy
A successful right-site-of-care strategy starts with understanding where healthcare dollars are currently being spent.
Employers can:
- Analyze claims data to identify high-cost sites of care and opportunities for improvement
- Identify Preferred-Value Providers for common, schedulable services
- Evaluate independent providers and ASCs as alternatives to higher-cost settings
- Review benefit plan incentives and consider no-cost or low-cost options for high-value care
- Give employees access to cost information before they schedule care
- Educate employees about when to use primary care, urgent care, emergency care, and other healthcare settings
- Measure utilization and savings to determine what’s working and where additional opportunities exist
Get More Value from Every Healthcare Dollar
Right-site-of-care strategies can help employers reduce unnecessary spending while helping employees access appropriate, high-value healthcare.
The Alliance helps employers use data, customized provider networks, benefit plan design, and employee education to encourage the use of high-value healthcare.
By helping employees understand their options and making high-value options more affordable and easier to access, employers can improve the healthcare experience while making every healthcare dollar go further.
Contact The Alliance to learn how a right-site-of-care strategy can help your organization control healthcare costs and guide employees toward high-value care.