The ROI of Onsite Medical Clinics in the Construction Industry

Construction projects are complex and fraught with risk. Injured workers present several concerns for large-scale projects, including medical expenses, OSHA recordables and lost productivity. With the industry looking to increase value and decrease costs, many contractors and employers have turned to onsite medical clinics as a practical solution.  

Onsite medical clinics provide a variety of healthcare services to workers, including first aid, treatment of work-related injuries, preventive screenings, urgent care, return-to-work programs, preventive medicine, health coaching, and more services tailored to your specific job site. But what is the return on investment (ROI) for onsite medical clinics in the construction industry, and how can they benefit a project? 

First, onsite medical clinics can lead to significant cost savings. By providing onsite intervention and preventive care, these clinics help workers avoid costly and often unnecessary medical procedures and hospitalizations. In a study by the Journal of Occupational and Environmental Medicine, they found for every $1 invested in onsite construction medical clinics over $4.14 in cost savings were experienced by the site. Additionally, onsite medical clinics can help reduce lost productivity and revenue due to worker absenteeism or presenteeism (when workers are present but not fully productive due to illness or injury). 

In a study by the Journal of Occupational and Environmental Medicine, they found for every $1 invested in onsite construction health clinics over $4.14 in cost savings were experienced by the site. Additionally, onsite health clinics can help reduce lost productivity and revenue due to worker absenteeism or presenteeism (when workers are present but not fully productive due to illness or injury). 

In addition to the significant cost savings and productivity improvements, onsite medical clinics in the construction industry also play a crucial role in avoiding OSHA recordable injuries. By providing immediate medical attention and implementing proactive safety measures, these clinics help mitigate the risk of workplace accidents and injuries that would qualify as OSHA recordables. Avoiding OSHA recordable injuries is particularly advantageous as it contributes to lowering an Experience Modification Rating (EMR). A lower EMR signifies a favorable safety track record, which can have a positive downstream impact on insurance rates and foster a stronger safety culture within the organization. By prioritizing injury prevention and maintaining a low incidence of OSHA recordables, construction companies can not only reduce costs but also enhance their overall safety performance and reputation in the industry.

So, what are the benefits of onsite medical clinics in the construction industry, and how can they lead to a positive ROI? Here are a few examples: 

• Cost savings: By providing early intervention and preventive care, onsite medical clinics can help workers avoid costly medical procedures and hospitalizations, leading to significant cost savings.
• Improved productivity: By reducing absenteeism and presenteeism, onsite medical clinics can help workers stay healthy and productive, leading to increased productivity.
• Reduced OSHA recordables: By addressing injuries promptly, onsite medical clinics can prevent injuries from becoming reportable incidents. This not only helps maintain compliance with OSHA regulations but also improves the company’s safety record, which can have a positive impact on insurance premiums and regulatory inspections.

To illustrate the benefits of onsite medical clinics in the construction industry, consider learning more about the experience of one Medcor’s longtime clients, a leading national contractor, with their project in Northern California.   

Their project presented significant challenges for ensuring jobsite safety and minimizing medical costs due to the massive labor force required to complete it. However, by providing onsite medical services, Medcor was able to deliver exceptional safety results and significant cost savings. 

In fact, the project team estimated that Medcor’s onsite services created a net savings of $1.7 million during the project by avoiding claims, minimizing lost productivity, and utilizing fewer medical supplies. 

Read more by viewing the Case Study in its entirety.

Overall, onsite medical clinics have the potential to provide significant benefits to construction projects. By highlighting the ROI of these clinics and the impact they can have on both workers and the bottom line, project leaders can make a strong case for investing in this valuable resource.

Learn more about Onsite Medical Services and what how Medcor can impact your return on your investment.