5 Ways Direct Primary Care Saves Costs for Employers

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February 5, 2019

5 Ways Direct Primary Care Saves Costs for Employers

direct primary care | healthcare cost savings | Paladina Health

About the Author

Rick Kjerstad | Vice President Business Development | headshot

As Vice President of Business Development, Rick Kjerstad leads Paladina Health's sales team. He is passionate about communicating the value of Paladina Health's cost-saving solutions to clients and prospective clients. 

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By Rick Kjerstad

It’s no secret that healthcare costs in the United States are rising at an alarming rate. Soaring insurance premiums and monstrous deductibles are making it increasingly difficult for healthcare consumers to access the care they need. At the same time, employers are scrambling for ways to offer attractive benefits packages without erasing their bottom line or passing the full weight of cost increases onto their employed populations.

The time is ripe for a wholly new way of delivering healthcare benefits.

Paladina Health’s innovative direct primary care (DPC) model has been shown to reduce healthcare expenses for employers while simultaneously improving the quality of healthcare employees have access to. Our direct primary care model is so named because it bypasses health insurance and is instead funded by direct payments from employers on a per-member-per-month basis. It does not replace insurance, but acts alongside it, facilitating proactive and cost-effective management of health conditions – from minor injuries to chronic illnesses.

Our results

Over time, employers offering Paladina Health can curb the year-over-year cost increases plaguing most organizations today. Here are five ways this happens.

Centralized care

Once a member establishes care with a Paladina Health provider, that provider and their care team become the focal point of that member’s healthcare delivery. We are able to meet the overwhelming majority of healthcare needs within our doctor’s offices. If the care of a specialist or outside provider is needed, we ensure that the member is referred to the best possible option. This encourages responsible, cost-conscious utilization of health insurance.

Proactive medical management

Our direct primary care model emphasizes prevention and proactive management of health problems rather than the more widespread trend of treating chronic conditions after they’ve become symptomatic and therefore more complex and expensive. Our providers are highly accessible and are afforded the necessary time to understand the nuances of our members’ health history and concerns. In fact, our appointment times range from a half hour up to 90 minutes based on appointment type!

Reimagined incentives

In the United States, most healthcare providers operate within what’s called a fee-for-service care model. This means they are reimbursed for every procedure performed, each of which corresponds to a unique billing code. As you can imagine, this system does not always incentivize providers and healthcare companies to operate with the best interest of their patients in mind. At Paladina Health, providers are freed from the burden of billing codes and rushing from one appointment to the next. Instead, our providers are evaluated on clinical outcomes. In our model of care, doing what’s in the best interest of the patient is also in the best interest of our clients and our business.

Direct primary care provides unrivaled access

Members may reach their provider by phone at any time – 24/7 – should an urgent need arise. What would otherwise be a costly ER or urgent care visit can often be managed with a simple phone call, putting the member’s mind at ease while saving unnecessary costs along the way. Moreover, we intentionally keep appointment slots open each day so that patients with urgent needs can schedule same-day or next-day appointments.

Superior patient experience

We know that none of the above would be possible if our members weren’t wholly satisfied. We are continuously surveying our patient population, and our members are consistently wowed by the care and attention they receive from our providers. The beauty of the direct primary care model is that it offers a healthcare experience that’s far superior to the norm and more cost effective than traditional primary care.

Our patient testimonials

Interested in learning more about how Paladina Health’s direct primary care model can help your organization curb healthcare costs? Contact us online or dial 1-866-808-6005 and select option 4. You can also reach out to me directly at partnership@paladinahealth.com. We look forward to hearing from you!

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