When a global semiconductor company broke ground on a manufacturing campus in Phoenix in 2021, it was the largest private-sector investment in Arizona history. It also quickly became the country’s largest active construction site—ripe with the risk of injuries and ballooning costs.
Like many large projects of this nature, this one leveraged an owner-controlled insurance plan (OCIP). These programs are self-insurance mechanisms where either the project owner (OCIP) or the contractor (CCIP) assumes responsibility for covering the costs of on-the-job injuries and other liabilities. By pooling resources and centralizing insurance management, OCIPs and CCIPs aim to mitigate financial risks associated with construction projects. This approach further underscored the importance of cost mitigation.
The scale and dynamic nature of this massive construction site posed significant challenges in managing occupational healthcare effectively. With numerous contractors, subcontractors and workers, ensuring prompt and comprehensive medical care was daunting for safety professionals. Anticipating a high volume of injuries, the client recognized the importance of establishing robust on-site medical services to mitigate any negative impact.
The client enlisted On Site Medical to design and implement a comprehensive healthcare model tailored to the project’s specific needs. This included everything from semi-permanent on-site medical facilities and emergency response protocols to employee screening and coordination with local EMS services. All with the goal of minimizing the impact of inevitable job site injuries.
Results
Over the course of construction, annual patient volume was as high as 5,174 cases. But thanks to On Site Medical’s innovative approach to healthcare, 87.7% of injuries were successfully treated on-site under OSHA’s definition of first aid. Furthermore, 90.82% of injured workers promptly returned to work, with 98% resuming full duties.
One of the key factors contributing to the client’s significant cost savings was On Site Medical’s unique financial model. Unlike traditional healthcare providers that charge based on volume, On Site Medical leverages a fixed-cost approach tied to labor hours worked. This incentivized open reporting and treatment of injuries while aligning with the financial interests of stakeholders. Consequently, the client reported a staggering $31,000,000 underestimation in on-the-job injury claims. In the end, they saved tens of millions of dollars in healthcare costs.
Contact us today to learn more about how to leverage On Site Medical clinics and approaches to drive results for your business.