Rising healthcare costs are plaguing HR and benefits professionals across industries. Mercer last year projected benefits costs would soar 5.8% in 2025—the third consecutive year of record increases and nearly double the standard increase of just a few years ago.
As employers work to balance cost containment with talent attraction and retention, many are pivoting to novel strategies. That includes Orange County Public Schools in Central Florida, which employs more than 24,000 people.
With 215 schools that educate 208,000 students, OCPS is Florida’s fourth-largest school district and the eighth largest in the nation. It strives to stay competitive with smaller districts in the region with leading-edge benefits, says Beth Curran, senior director of risk management at OCPS. Yet, the rising cost of benefits was challenging that effort and leaving few resources for salary increases.
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“We wanted to try something new and be creative to lower costs,” Curran says.
That new strategy included incorporating an advanced primary care model into its benefits offerings, which Curran says has made a meaningful difference for employee health and wellness, while also driving up employee engagement and retention.
The rise of advanced primary care
Instead of the payment-for-services approach built into most healthcare delivery, physicians who participate in an advanced primary care model receive a set per-member fee, which experts have said can reduce employer spend. Typical advanced primary care strategies enable employees to have free or low-cost access to a comprehensive team of healthcare experts, often in an on- or near-site clinic and with shorter wait times and more personalized care.
A study by Bain & Co. published in 2022 forecast that advanced primary care will be among the disruptors that could take over up to one-third of the traditional primary care market in the coming years. In recent years, Fortune 500 companies like JPMorgan Chase and 7-Eleven have turned to the model.
OCPS rolled out the employer-funded advanced primary care model last year, partnering with PeopleOne Health and RosenCare to open four new healthcare centers in the Orlando area.
Realizing the health and cost benefits of advanced primary care
With the new model, OCPS employees and their dependents who enroll have access to primary care, chronic condition management, mental health services, pediatric care, pharmacy services, diagnostics and more. And all services are offered at zero cost to the employee, Curran says.
The initiative launched at a time when Florida is facing a physician shortage, with predictions that the state will need to add more than 22,000 doctors in the next five years to meet patient needs.
PeopleOne Health has enrolled more than 17% of the OCPS workforce and given employees quick, convenient access to care—with many employees who lacked an established PCP now receiving regular care, Curran says.
According to PeopleOne Health, employers like OCPS are saving up to 30% of healthcare costs with the shift to value-based care models, like advanced primary care. Without the logistical and financial barriers to care, employees will seek more consistent engagement with primary care.
“This reduces the likelihood of costly procedures, avoidable surgeries and unmanaged chronic conditions down the line,” Curran says.
Making healthcare a priority in a shaky economy
To maximize awareness about the option, Curran says, the district undertook a “massive rollout,” which included messaging from the superintendent and school board members. Communication leveraged email, text messages and direct mailers, and was amplified by two OCPS unions, which represent instructional and support staff, across social media platforms.
Early feedback suggests a “positive shift,” Curran notes, with surveyed educators reporting feeling more supported and connected to their care teams since enrolling in the advanced primary care model. OCPS has also seen absenteeism decrease and employee morale increase, she says.
“Especially now, when the education system is under strain, the partnership is a strong example of how investing in educator wellbeing can make a real difference,” Curran says.
The zero-cost aspect has been particularly impactful. Even co-payments of $15 associated with traditional care delivery can add up for patients and may discourage them from seeking regular care, particularly for preventative needs.
In an uncertain economy—and with a workforce that includes employees across income levels, from teachers to bus drivers and custodians—the affordability of the advanced primary care model has been a game-changer for employee health.
“People may be having to shift costs to pay for gas or groceries right now. And they may not get the care they need because that $15 co-payment needs to go to their tank or to buy their bread,” Curran says. “Health isn’t going to be your priority in that case, and we want our employees to make their health a priority.”
