The initial start-up costs are relatively small. They include the clinic space build-out (usually $15-$50,000) and the equipment and supplies needed to open the clinic (usually under $17,000.) Most employers already have space that they can dedicate to the clinic site and may have staff to perform the actual build-out. If on-site space is limited, other locations can be utilized. An existing client of Novia, chose to renovate a house on their property and establish the clinic there. This has worked well for their situation. The employer is also provided a list of the equipment needed to furnish the clinic. The employer may already have some of the equipment needed - for example: desks, chairs or computers. Any services or equipment that the employer may already have will lower the initial start up cost.
Ongoing clinic costs include staffing, generic drugs, lab tests, replacement supplies and clinic management fees. All costs are billed to the employer on a true, transparent cost basis. Novia CareClinics does not receive any override or mark-up on the supplies or professional services provided through the clinic.
Novia CareClinics derives its revenue solely from its management fees. Novia does not require a deposit from an employer to commence work on forming a clinic nor does it receive any management fee until the clinic is open and operational.
What Savings Can You Expect by Opening a Novia CareClinic?
At reasonable utilization, one should expect that the on-site clinic will result in costs to the employer that are less than those now being paid for primary care services within the employer medical benefit plan. Reduced medical benefit costs will occur by converting the purchase of “retail” physician services, prescription drugs and laboratory tests (for services received in the Novia on-site clinic) to a wholesale basis. In addition, since no deductible, co-pay, or coinsurance is required of the employee to use the clinic, they may also save significant amounts over what they are now paying to access primary care services. So, from another perspective, the Novia CareClinics is not a cost to the employer, but a savings to both employer and employee.
This may seem to be a contradiction. How can employer save money by having an on-site clinic, while the clinic provides services free of charge to employees? The answer is that clinic costs, at proper utilization levels, can be expected to be less than the employer’s benefit plan is now paying for such services in the retail market, even after the plan has reduced its costs through deductibles and co-pays.
And that is just a comparison of primary care services. The clinics in fact do more. The on-site clinic provides other services, such as health risk assessments, a 24-hour "Nurse Hotline" and assistance in predisease and chronic disease management.
