Facing Rising Health Care Costs: 7 Proactive Steps Employers Can Take to Balance Benefits and Budget 

Looking for wellness programs for small businesses? Explore 7 practical healthcare solutions designed for Flagstaff employers.

Table of Contents

Work with Performance Staffing today!

Healthcare costs are hitting Flagstaff businesses hard. Over 50 percent of local small business owners have taken financial losses in the past five years just to keep providing health benefits. The burden extends to employees too – across Arizona, 25 percent of small business workers pay more than $12,000 each year for health coverage.1 

With limited medical facilities in our area, providing good healthcare is not just about numbers – it is about taking care of the people who make our community strong. Let us share some practical ways to provide quality healthcare benefits that work for everyone. 

The State of Healthcare in Flagstaff 

Healthcare access in Flagstaff has reached a critical point. Our city’s only medical center regularly runs over capacity, forcing some patients to travel to Phoenix for care. After voters rejected plans for a new medical facility in 2023, Flagstaff Medical Center – which cannot undergo further renovations – continues to struggle with growing patient demands and long emergency room wait times.2 

The strain on our local healthcare system is clear. Northern Arizona Healthcare lost $44 million last year, and while showing some improvement, still faces significant financial challenges.3 With our current medical center unable to expand and our growing population’s needs rising, Flagstaff employers and their employees face increasing uncertainty about local healthcare access. 

These challenges directly affect how employers approach healthcare benefits. When local medical facilities are strained, employees face longer wait times, potential travel for care, and possibly higher costs. This makes it more important than ever for Flagstaff businesses to explore innovative healthcare solutions that ensure employees can access care when they need it most. 

7 Ways Flagstaff Employers Can Provide Better Healthcare While Managing Costs 

With healthcare challenges mounting in our community, local employers need practical solutions that work for their businesses and employees. Here are seven strategies to help Flagstaff businesses provide quality healthcare while managing costs. 

1. Embrace Wellness Programs  

Preventive care makes a real difference in employee health and work life balance. According to SHRM, 97 percent of employers include wellness programs in their health coverage – and for good reason.4 Employees with access to regular health screenings, fitness programs, and preventive care stay healthier and more energized at work. 

Consider programs that fit different roles in your organization. Office employees might benefit from standing desks or ergonomic assessments to prevent back pain, while warehouse staff could use injury prevention workshops. Simple additions like offering healthy snacks or organizing group walks during breaks can encourage participation and build a culture of wellbeing. 

2. Explore Alternative Health Plans That Match Employee Needs 

Different employees have different healthcare needs, and a one-size-fits-all approach rarely works best. According to SHRM, 82 percent of employers offer traditional PPO plans, while 63 percent provide high-deductible health plans paired with health savings accounts (HSAs). This variety allows employees to choose coverage that fits their situation.5 

For example, some employees prefer lower monthly premiums with an HSA they can contribute to over time, while others value predictable costs through traditional plans. Employees can select coverage that works for their health needs and budget by offering choices. Remember, the goal is to ensure every team member has access to care that makes sense for them. 

3. Make Healthcare More Accessible Through Telehealth Services 

Telehealth services bring quality healthcare directly to your employees. When team members can consult healthcare providers from home or during lunch breaks, they get care when they need it most. This is especially valuable in Flagstaff, where medical facility access can be limited, and some patients face long wait times or travel to Phoenix for care. 

Virtual consultations work well for routine health needs – from quick medical questions to mental health check-ins. They also make healthcare more accessible for employees with busy schedules or those who live farther from medical facilities. Including telehealth in your benefits package ensures your team has convenient access to medical care that fits their daily lives. 

4. Support Employee Mental Health with Comprehensive Programs 

Mental health support is becoming essential in today’s workplace. According to SHRM, 90 percent of employers now offer mental health benefits, recognizing their crucial role in employee wellbeing.6 This shift shows how important it is to provide resources that help team members maintain good mental health and work-life balance.  

Consider offering a mix of support options. This could include confidential counseling services, stress management workshops, or meditation apps. Regular mental health days and flexible scheduling can also make a difference. Creating an environment where employees feel comfortable discussing mental health helps build a more supportive, understanding workplace. 

5. Create Physical Health Programs That Work for Everyone 

A healthy workplace starts with programs that support physical wellbeing. According to SHRM, 88 percent of employers consider health benefits “very important” or “extremely important” for employee satisfaction.7 This shows how important it is to create inclusive health programs that work for your entire team. 

Start by looking at your employees’ different needs and schedules. This might mean offering flexible gym memberships, organizing lunch-hour walking groups, or providing ergonomic workplace assessments. Small changes like these help create an environment where staying active and healthy becomes part of the workday, not an extra task to manage. 

6. Develop Smart Time-Off Policies That Prevent Burnout 

Rest and recovery are important in maintaining employee health and wellbeing. When team members have time to recharge, they return to work refreshed and better able to handle daily challenges. Strategic paid time-off policies do more than prevent burnout – they show employees that their work-life balance matters. 

Every business has unique demands, but the principle remains the same: employees need regular breaks to stay healthy. This could mean implementing summer Fridays, offering mental health days, or creating flexible PTO options that let people rest when they need it most. Building these breaks into your workplace culture helps create a more sustainable and supportive environment. 

7. Partner with Staffing Experts to Maintain Balance 

Building a sustainable workplace means understanding when your team needs extra support. In Flagstaff, where healthcare access can be limited, and employee well-being is crucial, having the right staffing strategy helps prevent your core team from becoming overwhelmed. A balanced workforce creates space for everyone to use their health benefits effectively. 

At Performance Staffing, we understand Flagstaff’s unique challenges and can help create staffing solutions that support your healthcare goals. Whether you need temporary support during busy periods or help managing employee schedules to accommodate medical appointments, we work with you to maintain a healthy work environment that benefits everyone. 

Let’s create a healthier Flagstaff together 

The health of our workforce is the health of our community. As you explore these healthcare solutions for your team, remember you are not alone in facing these challenges. At Performance Staffing, we are part of the Flagstaff community and understand our unique local healthcare landscapeLet us talk about how we can help support your team’s well-being. 

References 

  1. Preparing for Rising Health Care Costs. Morgan Health, www.morganhealth.com/assets/documents/preparing-for-rising-health-care-costs.pdf. Accessed 28 October 2024 
  2. Golightly, Chase. “Northern Arizona Healthcare Now Looking for Locations to Build New Hospital after Prop. 480 Failed to Pass.” 12 News, 8 Nov. 2023, www.12news.com/article/news/health/northern-arizona-healthcare-now-looking-for-locations-to-build-new-hospital-after-prop-480-failed-to-pass/
  3. Fox Graham, Christopher. “CEO David Cheney Addresses Northern Arizona Healthcare’s Finances, Income, Audit.” Red Rock News, 22 Jan. 2024, www.redrocknews.com/2024/01/22/ceo-david-cheney-addresses-northern-arizona-healthcares-finances-income-audit/
  4. “2024 SHRM Employee Benefits Survey: Health and Flexible Work Benefits Remain High, Menopause-Related Benefits Conversation is Growing.” SHRM, www.shrm.org/about/press-room/2024-shrm-employee-benefits-survey–health-and-flexible-work-ben0. Accessed 28 October 2024 
  5. Stanchak, Jesse. “Health Benefits Rebound in Popularity but Look Different in a Post-Pandemic World.” SHRM, www.shrm.org/enterprise-solutions/insights/health-benefits-popularity-2024. Accessed 28 Oct. 2024. 

Ready to Find The Best Talent in Northern Arizona?