News & Updates

Friday, October 2, 2015

Lacks Enterprises Controls Rising Health Care Costs with Innovative Employer-Sponsored Clinics

After seeing a significant increase in net cost per employee over the course of two years, Lacks set out to find an innovative solution to stabilizing healthcare costs. In January 2014 the company opened two primary care clinics in close proximity to the majority of its workforce. This innovative model has allowed Lacks to fully fund their Employee Health Savings Accounts, keep their employee payroll contributions to healthcare premiums flat in 2015 (following a 35% reduction in payroll contributions in 2014) and cover the cost of operating clinics.

"In addition to successfully cutting healthcare costs, we were able to remove the complexity of the traditional healthcare system, eliminate long wait times and ensure the patient is given sufficient time and attention with the physician to address their health concerns holistically," said Jim Green, executive director of human resources for Lacks Enterprises.

Lacks contracts with CareATC - a healthcare company and manager of employer-sponsored clinics headquartered in Oklahoma - to manage day-to-day operations and create separation between them and their employees' healthcare. CareATC works with Priority Health, the local network provider, and TPA to facilitate care-outreach, specialty services and claims administration.

"Collectively, we are pioneering new methods of using data analytics and technology to improve health and prevent disease, and are continually learning new ways to work together for the benefit of Lacks employees and their dependents," said Simon Abbott, vice president, business development at CareATC.

In the first year, Lacks Primary Care Clinics:

  • Provided primary care from board licensed physicians, lab and pharmaceutical services to Lacks' employees and dependents
  • Scheduled 7,741 appointments
  • Saw 52% of insured employees use the facilities at least once
  • Engaged 1,522 patients in preventative personal health assessments, 41% returned to discuss results with a physician
  • Diagnosed 2,607 chronic conditions among 680 patients
  • Achieved a wait time of less than 10 minutes for 83% of patients

The clinics are open for appointments only from 8 a.m. to 5 p.m. Monday through Friday with extended hours on Wednesday and availability on Saturday. The clinics are available to the 5,161 lives insured by Lacks including employees and their dependents.

Click here to learn more at and Grand Rapids Business Journal.

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