Many executives and senior management in construction, manufacturing and distribution have seen the pitfalls of industrial medicine firsthand—from excessive care to outright fraud. For those just starting out or changing careers, noticing red flags can take some time. But even for seasoned veterans who have seen the bad and the ugly, the good in industrial medicine might seem elusive. So we’re exploring the red flags to watch for and how to find a better option.
Red Flag: A business model that de-incentivizes appropriate, quality treatment
Unfortunately, this is the norm in the industrial medicine industry: Providers get paid more the more care they provide (and the more they bill your insurance company). This has led to an enormous amount of overutilization, and in some cases, fraud (think prescribing ongoing physical therapy sessions for a sprained pinky). Keep a close eye on this pattern of excessive care.
The better option: Look for a provider that is incentivized to provide the best care the first time around, without unnecessary follow-up or over-care. This will likely be a provider that has a capitated fee model—meaning they charge a flat fee for care regardless of the follow-up needed. You’ll also want to choose a provider that will strive to avoid unnecessary recordable injuries.
Red Flag: Hidden fees and confusing pricing
Similar to the first red flag, many industrial care providers take advantage of the fact that they will simply be billing your insurance and don’t bother to make their pricing and care models clear. This can lead to higher insurance rates over time and excessive or unexpected out-of-pocket costs for your business.
The better option: Look for a provider that offers a clear, flat pricing structure for basic services. Better yet, consider partners that accept cash payments for minor first-aid care or preventative services. This can help you avoid rising insurance rates.
Red Flag: Impersonal care
Just as with any large healthcare system, the largest industrial medicine providers tend to be the least caring and accommodating. And not just with your employees: building a trusting business relationship is next to impossible. The larger the provider, the harder it can be to get straight answers, handle administrative issues and get billing problems resolved (see the first two red flags!).
The better option: Look for a provider that prioritizes a culture of care and trust. This starts with the way they build a relationship with you, the business owner or manager, and goes through to the care they provide to your employees (you’ll be the judge of the former—ask your employees directly about the latter). Are the people with whom you and your employees interact passionate, kind and helpful? Trust your gut.
Red Flag: Inflexible service
The behemoth industrial medicine providers won’t bend to your needs—they have a rigid system and service offering, and you’re expected to acquiesce. Talk to a representative about your specific needs—if they can’t offer a solution or specific services that work for you, look elsewhere.
The better option: Look for a provider that offers a variety of services—from 24-7 job site dispatch to temporary on-site clinics. And it’s not just about the services; feel out if your provider is willing to make accommodations or cater their services to your needs. Flexibility and bespoke service are hugely valuable in the long run.
On Site Medical: The better option
After years of working in the insurance industry, the founders of On Site Medical saw the pitfalls of industrial medicine firsthand: skyrocketing costs, lost time and even fraud, often brought on by excessive care. So they set out to create a new model—one that prioritizes the health of employees and the bottom line of employers. Get in touch today to learn more.