Port-A-Clinic Problem Defined

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Displacement of Wal-Mart and Kroger stores in Metro Atlanta

The use of on-site health centers in industrial and corporate settings has recently become a rapidly expanding practice. The advantage to using an on-site health center is two-fold. By utilizing these on-site health centers, employers can potentially save on insurance costs while simultaneously improving productivity through minimizing employee absenteeism and presenteeism. Unfortunately, the costs required to maintain and staff an on-site health center can often deter companies from investing in them. This is especially true for companies who lack a concentrated, centralized employee base. In fact, it has been shown that on-site health centers are not cost effective unless a site has at least 900 employees. Noting this, it was determined that an attempt should be made to expand the market for on-site health centers to large corporations with a more distributed workforce. The most pertinent examples of such a corporation include large retailers like Wal-Mart or Target and grocery stores like Kroger or Publix. These companies will build several franchises within relatively close proximity to each other. Each location generally employs between 250 and 300 employees. It was decided that a strategy that would make an on-site health center cost-effective to these types of locations could prove to be effective in expanding the market for on-site clinics.