Construction Companies Can Benefit From Onsite Health Clinics
Mon, Oct 5, 2009
Employer Health Costs, Onsite Health Clinic, Workers' Compensation
Do onsite health clinics reduce employer healthcare costs for construction companies, whose sites and employees change from project to project?
Yes, they do, especially when it comes to controlling workers’ compensation costs.
Many times, on large construction projects, worker’s comp is handled through either an Owner Controlled Insurance Program (OCIP) or a Contractor Controlled Insurance Program (CCIP). In both scenarios, the financial responsibility for injury care is assumed by one party, who purchases the appropriate insurance coverage.
When owners have major projects built, they often provide OCIP coverage to the general contractors and sub-contractors involved as a way to reduce construction costs. Since these contractors don’t have to provide workers’ comp coverage to their employees, they don’t need to pad their bids to cover these costs. Thus, the owner receives lower bids that more accurately reflect the project’s true cost of construction.
And, once they’ve assumed responsibility for providing workers’ comp coverage, many owners also provide an onsite health clinic services via a medical trailer. Depending on the scope of the construction project and the number of workers involved, the clinic may be staffed with a primary care physician, nurse practitioner, or registered nurse, or any combination of the three.
Placing a mobile onsite health clinic at a construction site is a very effective way to reduce employer healthcare costs since primary, occupational and emergency care can be provided at a lower fixed cost. Plus, the clinic medical staff can work with project safety personnel to identify ways to prevent the injuries and accidents that result in workers’ comp claims.
When an owner opts not to offer an OCIP, the project’s general contractor will often covers workers’ comp liability through the purchase of a CCIP. Thus, these construction companies pool their risk and lower their healthcare costs.
The size and scope of OCIPs and CCIPs programs vary from state to state, as does the amount of union participation in these programs. In fact, the only group purchases that most unions make are for the drug and alcohol substance abuse testing they’re obligated to.
Yes, an onsite health clinic can help lower your facility’s healthcare costs, even if that facility is under construction.
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Tags: CCIP, contractor health care, OCIP, Onsite Health Clinic
Scott is the VP, Sales and Marketing at Workplace Health Services. In this role Scott strives to integrate a complex group of service offerings into a simple to understand package for prospects and clients.
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