Why Should Employers Consider Virtual Health Clinics as a Benefits Solution?

As healthcare continues to shift into the digital realm, employers must reevaluate their benefits packages to meet the growing demand for accessible care. Can virtual health clinics offer a solution to this challenge?

Effective healthcare involves more than just receiving the correct treatment. It’s about providing easy, timely, and equal access to care. However, between long waits at doctors’ offices, travel barriers, and high costs, even a simple appointment can significantly drain a person’s time and wallet.

As a response, there’s a growing demand for virtual care.

Nearly a quarter of Americans, especially younger generations, would switch doctors for virtual health access.

Convenience, flexible appointment times, and cost savings were the driving preferences for virtual visits, but the same research shows a growing disconnect between consumer demand and availability.

Introducing a virtual health clinic as an employee benefit could break down these barriers by bringing healthcare directly to employees. It’s an affordable, convenient, and time-saving alternative to traditional in-person visits.

Below, we explore its advantages and the strong economic case for employers.

What are Virtual Health Clinics?

Virtual healthcare delivers medical services to patients through digital platforms, such as video calls, phone consultations, or online messaging, rather than in-person visits. This approach makes traditionally in-person services more accessible and convenient.

Virtual care is often used synonymously with emerging solutions like digital health or telehealth services. However, it is a broader category that covers all the different ways a healthcare provider can interact with patients.

In that sense, a virtual health clinic, which is an element of virtual care, is an online meeting room that takes on the role of a traditional clinic, but all interactions occur remotely.

These clinics offer many non-emergency medical services, including primary care, routine check-ups, mental health support, specialist consultations, diagnostics, prescriptions, follow-up care, and more. There’s no need for in-person visits, the waiting time is shorter, and the remote clinics are usually a more affordable alternative.

The Growing Importance of Virtual Healthcare Solutions

Virtual clinics, telehealth, telemedicine, and digital health have all skyrocketed in the past few years as we witness the increasing importance of virtual healthcare solutions. Although they weren’t exactly a novelty before the pandemic, they have gained widespread adoption ever since, transforming how healthcare is delivered and increasing access to medical services.

For example, a study on the state of telehealth before and after COVID-19 shows that before March 2020, telemedicine use in the U.S. was growing.

Still, its adoption was limited, and logistics were complex.

In response to the pandemic, the U.S. Congress relaxed regulations, leading to a 766% increase in telemedicine encounters in the first three months. The study also reveals that this service is still prevalent post-pandemic and has become a permanent fixture of American healthcare.

In fact, the current and anticipated global market growth further demonstrates this. According to recent data, the virtual care market, valued at $15.19 billion in 2024, is projected to reach $247.67 billion by 2034.

This widespread expansion is driven by the benefits of being cost-effective, accessible, and convenient. The advantages offer even greater value to employers, impacting everything from employee engagement to organizational success.

Cost-Effectiveness

One of the most compelling reasons for adopting a virtual-first health plan is its cost-effectiveness. Virtual clinic consultations often come at a fraction of the cost of traditional healthcare services, which can significantly lower healthcare expenses for both employers and employees.

Traditional vs. Virtual Healthcare Costs

Healthcare expenses can quickly add up with doctor visits, costly treatments, travel, and lost work hours. In fact, a study reviewing virtual care delivery shows that in-person visits to health clinics, urgent care centers, primary care physicians, and emergency departments can cost significantly more than virtual care, with some differences exceeding $1,700.

By reducing or eliminating some of these costs, a virtual health clinic can offer a more affordable alternative to traditional healthcare.

Reduced Absenteeism and Productivity Losses

According to an IBI analysis, poor health costs companies $530 billion annually.

Chronic health conditions led to a loss of $198 billion in impaired productivity, while absenteeism resulted in an additional $82 billion in opportunity costs.

The findings from nearly 143 million employees show 1.4 billion days of absence and illness-related lost productivity.

A virtual care clinic can help address these losses by offering accessible healthcare options. The option to consult with a healthcare provider remotely means employees don’t have to leave work or take an entire day off. This is particularly important for chronic patients requiring ongoing care or check-ups.

At the same time, virtual care encourages regular check-ins, which helps employees catch potential health issues early on. Proactive health management reduces the likelihood of extended absences and keeps workers performing at their best.

Lower Emergency Room and Urgent Care Utilization

An SHRM article researching cost savings for employers shows that virtual care can also help resolve health issues without requiring urgent care or a visit to the emergency room, where treatment is generally more expensive.

Virtual consultations ensure timely medical advice to manage conditions early and prevent unnecessary ER visits, leading to significant cost savings, ranging from $309 to over $1,500 per avoided visit.

Lowering the frequency of urgent care visits helps drive down costs while also easing the strain on overburdened emergency services, ultimately improving the efficiency of the healthcare system.

Potential Insurance Premium Impact

Beyond the obvious cost benefits, could virtual healthcare options also influence how much we pay for insurance? The answer is that it depends.

Several factors, including age, gender, health history, and risk levels, determine the cost of an insurance premium. While some are fixed, others can be influenced.

Virtual consultations are often more cost-effective than in-person visits due to savings on office space, travel, and administrative costs. They also encourage preventive care, potentially reducing costly hospital visits and claims.

These savings could be passed on to policyholders through lower premiums. However, the impact on premiums will depend on the widespread adoption of virtual care, its effectiveness, and how insurers structure their plans.

In the long term, this could lower premiums, but it may take time to realize these benefits fully.

Accessibility and Convenience

Another significant advantage is the accessibility and convenience that a virtual health clinic offers. Patients can access healthcare services anywhere, anytime, granting them flexibility unattainable with traditional healthcare.

24/7 Availability for Employees

Usually, virtual care providers offer around-the-clock services.

This 24/7 availability ensures that employees can access trusted medical professionals whenever they need care, whether it be early in the morning, late at night, or on the weekend.

For employees juggling busy work schedules or those in different time zones, having this flexibility helps avoid unnecessary delays in treatment. It also prevents minor health issues from becoming major problems in the long run.

Elimination of Geographical Barriers

Accessing healthcare was a significant challenge during the pandemic lockdowns, and even now, those living in rural or remote areas often face difficulties getting regular care.

However, virtual care has reduced this barrier.

Now, all that’s needed is a stable internet connection and a computer or smartphone, and patients can easily connect with healthcare providers with a simple call, making access to care more convenient than ever.

Reduced Wait Times for Appointments

A study by the University of Iowa found that rural ER patients receive faster care when the hospital offers telemedicine services.

Telemedicine, as part of virtual care, reduced patient wait times by an average of six minutes, and in over 40% of telemedicine encounters, remote providers were 14 minutes faster than local providers.

Although this may not sound like a lot, research on the effect of emergency department wait time on the cost of care shows that even a 10-minute increase for the most critical patients raises the price by an average of 6%.

Mobile-First Solutions

According to the Pew Research Center’s mobile fact sheet, nine in ten Americans own a smartphone, making virtual health clinics much more convenient. Patients do not need to visit a physical location. Instead, they can consult with providers, receive prescriptions, and manage their health from anywhere.

Enhanced Employee Experience

Employees feel valued and supported when benefits align with their needs—whether it’s flexibility, mental health support, or, in this case, innovative solutions such as a virtual health clinic.

As a result, an in-depth study on the benefits of investing in the employee experience reveals that 45% of employers are more likely to see positive changes in key metrics like turnover, absenteeism, and employee productivity.

Broader Range of Available Specialists

Virtual clinics can replace many in-person health services. For example, with an online consultation, employees can access specialists they might not have nearby, whether it’s dermatologists, cardiologists, or mental health providers.

This wide range of services and the convenience of accessing them from anywhere can improve employees’ interactions with the healthcare system, potentially leading to better health outcomes and a more positive experience.

Mental Health Support

Virtual healthcare quickly found its way into behavioral health.

For example, a systematic review of its efficacy on depressive disorders showed that virtual interventions were more effective than no treatment, waitlists, and treatment-as-usual, leading to higher rates of remission and lower symptom severity. The analysis also revealed no significant differences in outcomes between virtual and in-person treatments, meaning that receiving mental health support through a virtual clinic could be just as effective as in-person therapy.

Another study exploring trends in the use of telemedicine for behavioral healthcare suggests that its convenience and reduced stigma made it a popular choice for mental health and substance use disorders during the pandemic.

The bottom line is that virtual care makes it easier for employees to access counseling and therapy discreetly from anywhere, which helps reduce the stigma around seeking help. It’s a simple way to ensure they get the support they need to stay mentally and emotionally healthy.

Privacy and Discretion

A virtual health clinic offers a substantial advantage regarding privacy, further enhancing the employee experience. Individuals can see healthcare providers from their homes and on their terms without worrying about being judged, especially regarding sensitive topics.

At the same time, these platforms take security seriously, using encryption, strong access controls, and regular audits to keep patient information safe. All these measures make virtual healthcare a private, secure, and discreet option for employees seeking medical advice.

Preventive Care Focus

Finally, virtual consultations transform how employees manage their health by making preventative care more accessible and convenient.

Studies show that digital health interventions enhanced prevention in primary care and were especially useful for managing chronic conditions. So, instead of waiting for health issues to arise, employees can use digital health tools like virtual screenings and remote health monitoring to catch potential health problems early.

Recruitment and Retention Boost

According to PeopleKeep’s 2024 Employee Benefits Survey, the benefits package was an important factor in 81% of workers’ decisions about a new job. Health benefits were their top priority, with 91% of employees expecting them.

Most employers agreed on their importance but were worried about the costs. Over half of employers (56%) identified cost as the biggest challenge in providing benefits, which may explain why some (11%) do not offer any benefits to their employees.

While the price of benefits remains a significant barrier, virtual care presents a promising solution.

Research shows that its use in primary care does not lead to more low-value care. In fact, primary care practices with the highest use of telehealth did not see an increase in unnecessary tests and scans, which prevented wasting money and resources.

The cost-effectiveness of “alternative” health benefits makes them a good choice for employers who want to avoid overspending while reaping the benefits of a comprehensive benefits package. Including a virtual health clinic as a benefits solution shows that the company cares about employees’ well-being, increasing its competitiveness in retaining or attracting top talent.

Implementation Considerations

The advantages are evident—virtual care is cheaper, more accessible, and extremely flexible. However, it also has some obvious limitations, from an inability to provide emergency care or physical exams to technology barriers, such as a lack of internet access.

Therefore, employers should consider several key elements before implementing a virtual health clinic as a workplace benefit.

Is this something your employees need?

First, the benefit should reflect employees’ real needs, whether general medical care, mental health support, or chronic disease management. Surveys before implementation can ensure the benefit meets demand.

What will they get?

Next, quality of care is essential, with licensed professionals providing services that match or exceed in-person visits.

Do they have easy access?

The platform must be easy to use, allowing employees to book appointments and access care quickly. A guide to employee benefits access can simplify the process and maximize participation.

Is it cost-effective?

Finally, the virtual clinic should be cost-effective, offering a more affordable option than in-person visits. Integrating this with existing health benefits is essential to make the service seamless for employees.

ROI Metrics

The ROI of virtual health clinics can be measured across different dimensions that benefit both employers and employees.

For example, employers can achieve direct cost savings through reduced healthcare claims and lower insurance premiums. Although this is more of a case-by-case basis, research indicates that virtual care can lead to a direct return on investment of 32%.

However, cost avoidance and long-term benefits are other significant aspects, providing value beyond direct savings.

Access and Convenience – When employees receive convenient healthcare access, it reduces the need for travel and time off work and lowers absenteeism and productivity losses.
Preventive Care Savings – A virtual health clinic makes it easier for employees to engage in preventive care, which can lower the risk of costly chronic conditions and hospitalizations.
Long-Term Health Management – These solutions also provide a platform for remote patient monitoring, leading to greater health outcomes and reducing long-term costs by preventing complications and unnecessary hospital visits.

Specialized Expertise – Virtual second opinions allow employees to consult with specialized medical experts remotely. This service can reduce diagnostic errors, improve health outcomes, and reduce costs associated with misdiagnoses.

Is Your Benefits Package Ready for Healthcare's Digital Future?

The future of healthcare includes virtual care.

All evidence suggests that these solutions have moved well beyond being seen as an “alternative.”

Research shows that 77% of employers plan to increase investment in virtual health care, and for almost half of them, this has become central to their benefits strategy.

Although digital may never completely replace traditional healthcare, the aspects where it can are already transforming, from apps and wearables for health tracking to digital prescriptions, remote patient monitoring, and telehealth.

A virtual health clinic is an integral part of this transformation. It offers a better employee experience, improves access to care, and bridges the employee benefits disconnect. As healthcare continues to evolve, so do employees’ needs and priorities.

The question is: Are you ready to meet them?

Written by Tamara Jovanovska

Content Writer at Shortlister

Sources

Telehealth Services

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