THE WHAT
In the evolving landscape of employer-sponsored health plans, direct primary care (DPC) has emerged as one of the more important solutions. By offering personalized, relationship-driven care, DPC addresses gaps in traditional healthcare models while delivering long-term cost savings and improved health outcomes.
Unlike fee-for-service models that incentivize quantity over quality, DPC operates on a membership-based structure. This allows primary care providers to focus on prevention, early intervention, and long-term care—key factors in reducing healthcare costs and enhancing the quality of patient care.
THE WHY
Employers investing in DPC realize benefits across multiple dimensions:
Cost Savings:
- Employers implementing DPC report a 15-30% reduction in overall healthcare costs (Milliman, 2020; Gold Standard Report, 2021).
- Improved management of chronic conditions and reduced reliance on expensive emergency and specialty care contribute to long-term savings (Health Affairs, 2019).
- DPC providers can navigate members to directly contracted care solutions for commonly used services such as outpatient surgeries and procedures, imaging, and physical therapy – driving towards better care, at a better cost.
Enhanced Access and Engagement:
- DPC offers same-day or next-day appointments, longer visit times, and 24/7 provider availability.
- Patients are more likely to complete preventive care, reducing the incidence of costly health crises.
Improved Health Outcomes:
- With more time and resources to address patient needs, DPC providers excel at managing chronic conditions, driving better outcomes, and fostering healthier lifestyles.
THE HOW
There are several DPC models – including independent practices, on-site or near-site, and some entirely virtual options. The right model for a given employer depends on many factors – however, once the right partner is selected, employers should work to:
Integrate DPC into Existing Benefits:
- Ensure seamless coordination with high-deductible health plans and/or wrap-around insurance networks.
Incentive Utilization
- Most employers remove co-pays and waive deductibles in order to provide their members with access to free, high-quality primary care.
Communicate, Communicate, Communication
- Educate employees first on the importance of primary care, and then on how DPC provides better access, a higher quality of care, and more personalized healthcare.
A Foundation for Long-term Health & Risk Management
Direct primary care is redefining how healthcare is delivered and experienced in employer-sponsored plans. By prioritizing patient relationships, preventive care, and long-term health, DPC offers a sustainable, high-impact solution to rising healthcare costs and employee health challenges. There is arguably no better, more valuable investment employers can make in their people’s health and the future of their own health plans.
