Employers want cost-effective partners for contracted healthcare services

When working with firms providing employer-sponsored healthcare services, employers want partners who reduce costs, improve health outcomes, and foster strong relationships with clients, according to a KLAS report.

The Employer-Sponsored Healthcare Services 2024 report highlighted how employers and unions feel about the employer-sponsored healthcare services market and the firms they work with.

Marathon Health received the highest overall performance score of 90.5 on a 100-point scale. The firm has a large market share and has increased its presence through acquisitions, including that of Everside Health and Oracle Health’s employer-sponsored healthcare services.

Clients using Marathon Health said they would contract with the firm again and reported high satisfaction, citing strong relationships, high-quality physicians, improved control over chronic conditions through wellness coaching, and strong marketing of healthcare services. In addition, employers said Marathon Health physicians spend significant time with patients. Some respondents said the firm’s services were too frequent, while others noted concerns about scalability and recent turnover.

Premise Health has the largest market presence of the firms included in the report and received an overall performance score of 87.2. Similar to Marathon Health, Premise Health has grown its business through multiple acquisitions.

Some interviewed clients reported strong, long-term relationships with clinicians, while others noted decreased satisfaction after acquisitions due to less responsiveness and issues not being resolved in a timely manner.

Employers or unions are likely to choose an on-site or near-site health services model to reduce the cost of healthcare and improve employee health overall—two things that Proactive MD was rated high for. The firm received a performance score of 89.4, with clients realizing cost savings and appreciating the firm’s monthly utilization reports.

Some respondents said the providers were high-quality, leading to increased use of services and better value. Others mentioned challenges with clinical staff turnover, which has negatively affected employee access to services.

QuadMed received an 88.8 for overall performance and has seen increased client satisfaction over the last few years. Respondents said the firm is communicative, receptive, and collaborative and is engaged with on-site events promoting its services. Clients also noted that the firm provides regular reports to demonstrate the value of the services, but some said they would like the firm to more effectively promote usage and positively impact employee health. A few respondents reported issues with staffing turnover.

Employers and unions reported contracting firms for primary care and telehealth services, while fewer reported contracting for behavioral health, pharmacy, and occupational health services. These results do not always represent employee usage, though, which is important to know when determining return on investment.

Without sufficient employee use of the services offered, the partnership between firms and employers will not survive financially. Privacy concerns, apathy toward seeking healthcare, misalignment with employee needs, or the lack of employee knowledge about the services can prevent usage.