Boosting DPC Membership by Working With Employers
7 Minute ReadHello, valued readers!
In my previous blog posts, we’ve examined essential topics for healthcare organizations, such as preventing physician burnout, building a strong organizational culture, enhancing the patient experience, and developing effective strategies for recruiting and retaining providers. These discussions have primarily focused on optimizing internal operations and fostering sustainable growth.
In this blog post, we will shift our focus to a critical yet often underutilized strategy for expanding a Direct Primary Care (DPC) practice: partnering with employers. This guide will provide DPC clinic owners with practical insights and data-driven approaches to effectively present their services to employers. By doing so, they can grow their membership base, improve financial stability, and deliver high-quality care to a broader population.
Introduction: Why DPC Clinics Should Prioritize Employer Partnerships
For Direct Primary Care clinics, establishing partnerships with employers presents a significant opportunity for sustainable growth, increased patient volume, and enhanced financial stability. With more than 60% of Americans obtaining health insurance through their employers, businesses play a vital role in shaping healthcare access and delivery. However, many employers are still unaware that DPC offers a cost-effective and high-quality alternative to traditional, insurance-based primary care. This represents an opportunity that DPC clinics should seize.
The Rapid Expansion of Employer-Sponsored DPC
The DPC model is experiencing significant growth, particularly in the employer sector. Between 2017 and 2021, employer-sponsored DPC memberships increased by 241% as businesses sought alternatives to manage healthcare expenses while enhancing employee health. This trend underscores the growing recognition of DPC's effectiveness in lowering overall healthcare costs, reducing absenteeism, and improving health outcomes among employees.
Currently, more than 51% of all DPC memberships are funded by employers, reflecting an increasing acceptance of the model among businesses aiming to control costs and improve employee wellness programs. This shift is motivated by employers' pressing need to combat rising healthcare costs, which rose by 4.5% in 2024 and are expected to rise by 8% in 2025 if employers do not change their plans, according to Mercer’s National Survey of Employer-Sponsored Health Plans.
The Employer Cost-Savings Potential of DPC
Employers utilizing DPC have reported annual healthcare cost reductions ranging from 11% to 20%. These savings are primarily attributed to:
Fewer unnecessary emergency room visits and hospitalizations
Lower claims expenses due to preventive care and early intervention
Reduced reliance on high-cost insurance billing
In fact, self-funded employers who implement DPC have saved up to $2,500 per employee annually by decreasing avoidable specialist referrals, minimizing hospital admissions, and cutting administrative waste.
Why Employers Are Increasingly Interested in DPC
Employers face growing pressure to manage rising healthcare costs while improving employee satisfaction. Research indicates that:
40% of employers identify controlling healthcare costs as their top priority in benefits planning, according to the National Business Group on Health.
83% of employees would enroll in DPC if offered by their employer, highlighting a strong demand for accessible, no-co-pay primary care, according to the Hint Health DPC Trends Report.
Companies that incorporate DPC into their benefits offerings have experienced a 20% to 30% decrease in employee absenteeism, leading to increased overall productivity, according to the DPC Alliance.
For DPC physicians and clinic owners, effectively conveying the value of DPC to business owners, CFOs, and HR executives is essential. Clinics that successfully establish partnerships with employers will secure higher patient volumes, stable revenue streams, and long-term membership retention, positioning themselves for sustained success in the evolving healthcare landscape.
The Challenges of Pitching DPC to Employers
While DPC offers significant advantages for businesses, many employers are still hesitant to embrace this unfamiliar healthcare model. Their reluctance often arises from misconceptions, uncertainty about how DPC will integrate with existing insurance plans, and concerns regarding employee engagement. To successfully pitch DPC, educating employers, directly addressing their concerns, and presenting data-driven evidence of its benefits are essential.
Lack of Awareness & Misconceptions
One of the main challenges in pitching DPC to employers is the general lack of awareness about how the model operates and the value it provides. Many employers mistakenly equate DPC with concierge medicine, perceiving it as an expensive, luxury healthcare option intended only for high-income patients. This misunderstanding prevents them from recognizing DPC as a cost-saving solution that enhances access to high-quality care.
Additionally, some employers believe that DPC replaces traditional insurance, leading them to dismiss it as an impractical alternative to group health plans. In reality, DPC is designed to complement High-Deductible Health Plans (HDHPs), self-funded insurance models, and employer-sponsored Health Reimbursement Arrangements (HRAs). By positioning DPC as a means to reduce claims expenses, decrease emergency room visits, and improve workforce health, clinic owners can help employers understand how it integrates into their existing healthcare offerings.
Common Employer Concerns & Objections
Even when employers show interest in DPC, they often have lingering concerns that must be addressed before considering the switch. Some of the most common objections include:
“How does DPC fit with our existing insurance plan?”
Employers worry that adding DPC may disrupt their current health benefits structure. In reality, DPC seamlessly integrates with High-Deductible Health Plans, Health Reimbursement Arrangements, and self-funded plans. It provides low-cost, high-access primary care that helps reduce overall claims costs. Employees can continue to use their insurance for catastrophic coverage, specialist visits, and hospital care. At the same time, DPC minimizes the need for these high-cost services by offering preventive and routine care at no additional cost.
“What about specialty care and hospitalizations?”
Employers often inquire about how employees will access specialty care if DPC is their primary source of healthcare. DPC is designed to be the first line of defense, significantly reducing unnecessary specialist referrals and hospital visits by up to 50%. When referrals are necessary, DPC clinics coordinate directly with specialists to ensure cost-effective care, often negotiating cash-based pricing for out-of-network services.
“Will employees actually use this?”
A common hesitation is whether employees will embrace DPC or view it as an unfamiliar or inconvenient option. However, data indicates that employees are eager to engage with DPC. A 2022 study by Hint Health found that 83% of employees would enroll in DPC if offered by their employer, primarily due to improved access to care, no co-pays, and more time with their physicians. Clinics can reinforce this point by sharing testimonials from employees who have benefited from DPC’s personalized approach.
The HR “Dead End”
One of the major obstacles to employer adoption of DPC is the reluctance of HR teams to alter existing healthcare benefits. HR professionals tend to be risk-averse, focusing on compliance and often being hesitant to embrace a model that they are unfamiliar with or that requires additional education for employees.
Furthermore, HR teams are not directly incentivized to reduce healthcare costs; this responsibility typically lies with CFOs and business owners. Since HR managers prioritize minimizing administrative workload, they are less likely to advocate for DPC unless there is a mandate from executive leadership to implement it. Instead of targeting HR teams, DPC providers should focus their pitches on CFOs, business owners, and insurance brokers, who are more open to discussing financial benefits, employee productivity improvements, and healthcare cost reductions.
A Practical Guide to Pitching DPC to Employers
Step 1: Identify the Right Employers
Target self-funded employers, as they have more control over healthcare costs and are more likely to explore alternative healthcare models.
Focus on industries with high turnover, such as hospitality, retail, and construction, where DPC can help improve employee retention and satisfaction.
Small- to mid-sized businesses (20-500 employees) are prime candidates due to their limited negotiating power with traditional insurance providers, making DPC a more attractive alternative.
Employers struggling with absenteeism & chronic disease benefit significantly from DPC’s proactive healthcare model, which reduces sick days by up to 30%, according to the DPC Alliance.
Industries with a younger workforce, such as tech startups and creative firms, are also ideal, as younger employees prefer virtual care, telemedicine, and direct access to providers—all strengths of the DPC model.
Step 2: Customize Your Pitch for Different Decision-Makers
CFOs & Business Owners → Focus on Cost Savings & Productivity
“DPC can reduce employer healthcare costs by up to 20% annually.”
“Employers using DPC have seen a 40-50% reduction in ER visits and hospitalizations, translating into significant cost savings.”
“Some self-funded employers using DPC save an average of $2,550 per employee per year.”
“DPC’s fixed, predictable monthly costs allow employers to budget accurately and avoid unexpected insurance claims spikes.”
“Companies using DPC report a 15% increase in overall employee productivity, as fewer employees miss work due to health issues.”
HR Executives → Focus on Employee Experience & Retention
“80% of employees report a more positive perception of their employer when offered DPC.”
“Faster access to care reduces absenteeism by up to 30%, helping businesses maintain productivity.”
“Companies that offer DPC as a benefit see a 25% improvement in employee retention compared to those relying solely on traditional health insurance".”
“83% of employees said they would enroll in DPC if their employer offered it, reinforcing employee demand for this model.”
“DPC provides 24/7 access to primary care, reducing employee stress and increasing job satisfaction.”
Insurance Brokers & Third-Party Administrators (TPAs) → Focus on Plan Integration
“DPC works alongside self-funded plans and HDHPs to lower claims costs while maintaining employer compliance with federal healthcare regulations.”
“Employers that integrate DPC into self-funded plans report an average of 30-40% lower overall healthcare expenditures.”
“DPC provides real-time data-driven reporting, allowing employers to track utilization rates and measure ROI on healthcare investments.”
“Some TPAs now specialize in working with DPC providers to simplify onboarding and administration for employers.”
Step 3: Demonstrate How DPC Integrates Seamlessly
Employers sign a fixed per-employee-per-month contract, providing predictable healthcare costs instead of fluctuating insurance premiums.
Employees receive onboarding support, access guides, and telehealth services, ensuring a smooth transition to DPC care.
DPC clinics provide real-time healthcare utilization reports, allowing businesses to track ROI, cost savings, and employee engagement.
DPC partners with local specialists and hospital networks to negotiate cash-based pricing, ensuring employees receive affordable specialty care when needed.
Employers can implement DPC in stages, starting with leadership teams or high-turnover departments before expanding organization-wide.
DPC models have been successfully implemented across industries ranging from manufacturing to tech, demonstrating versatility and scalability.
Step 4: Strengthen Your Pitch with Strategic Partnerships
Join local business groups, chambers of commerce & HR associations to connect with decision-makers and raise awareness about DPC.
Leverage LinkedIn ads targeting business owners & CFOs, highlighting cost savings, retention benefits, and DPC’s impact on absenteeism.
Work with TPAs and benefits advisors to integrate DPC into existing employer-sponsored health plans.
Offer an introductory trial period for employers, allowing them to experience the benefits of DPC before committing long-term.
Host educational webinars or in-person presentations showcasing employer case studies and cost savings data.
Collaborate with self-funded employer groups and insurance brokers who already work with businesses searching for cost-saving healthcare alternatives.
Employers want healthcare solutions that reduce costs, increase employee engagement, and improve productivity. The key to winning employer partnerships lies in presenting compelling data, tailoring the pitch to the decision-makers priorities, and demonstrating real-world case studies highlighting DPC’s financial and workforce benefits.
A Closing Message for DPC Owners and Operators
The future of Direct Primary Care DPC growth is clear—forming partnerships with employers is essential for clinics that want to scale, stabilize revenue, and improve patient retention. As the adoption of employer-sponsored DPC increases, clinics that effectively communicate the model’s cost-saving and wellness benefits will become crucial healthcare partners for businesses nationwide.
DPC offers proven advantages: it lowers healthcare costs, reduces emergency room visits, boosts employee retention, and enhances productivity. Clinics must present a compelling, data-driven case to CFOs and HR executives, demonstrating that DPC can cut costs by up to 20% annually while promoting healthier and more engaged employees. Success with employer-sponsored DPC also depends on building relationships with brokers and benefits advisors to access employer networks. Clinics should highlight real-world case studies that showcase significant savings achieved through the DPC model.
Those clinics that refine their approach and provide strong evidence of DPC’s impact will not only survive but thrive in a competitive healthcare landscape. The opportunity is here—now is the time to take action and engage every employer.
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