Redirect Health becomes go-to source for restaurants
Challenged by slim profit margins and increased operating expenses, especially those caused by the Affordable Care Act (ACA), restaurants have started looking at smarter solutions to manage costs.
Dozens of franchises and independently owned restaurants have turned to Redirect Health to improve the quality of healthcare, protect employees from rising costs and guard their revenues while maintaining ACA compliance.
Select locations of Denny’s and Wetzel’s Pretzels, as well as locally owned Café Napoli, Cheba Hut Subs, Deluxe Burgers, Mexx 32, Parlor Pizza, Nello ’s Pizza, Richardson’s of New Mexico Restaurant Group, Rustlers Roost, Upper Crust Bakery and YC’s Mongolian Grill, totaling nearly 2,000 employees, are now offering their employees a new type of healthcare solution pioneered by Redirect Health, which utilizes a self-insurance model and cutting-edge care logistics process providing ease for the employer and employee.
Starting this year, the ACA has required businesses with at least 50 full-time equivalent employees to offer their workforces healthcare. In an industry unaccustomed to such requirements, many restaurants have struggled. Profits have dived, and some owners have been forced to reduce staff hours to avoid ACA thresholds, which can negatively impact employee loyalty, productivity and workload.
“Growing their business and caring for employees shouldn’t be mutually exclusive for restaurant owners,” said Redirect Health CEO Paul Johnson. “Although Obamacare is putting serious strain on business owners, the restaurant industry is seeing that the traditional status quo insurance model isn’t working, so they’re applying their entrepreneurial spirit to seek out smarter solutions that are both economically and socially responsible.”
Redirect Health’s flagship offering, EverydayCare, was developed with restaurants owners in mind. It meets the ACA’s Minimum Essential Coverage requirement and addresses the majority of peoples’ healthcare needs, such as treatment of coughs, colds, diabetes, asthma, pain, injury and other common ailments. It costs about $100 a month per person – a cost the employer or employee could absorb.
Interest from the restaurant industry reflects a larger trend in the hospitality, construction and agriculture sectors, which have a large number of support-level employees and fluctuating workforces. In 2015, Redirect Health experienced incredible growth as entrepreneurial businesses in these sectors introduced its affordable, high-quality and compliant healthcare plans. It also experienced a rare occurrence – 100 percent renewal rate among clients – validating that cost and common sense care are significant drivers to maintaining satisfaction.
Redirect Health is able to keep costs low without sacrificing quality because it’s care logistics team ‘redirects’ a patient’s care through the most efficient, cost-effective route. For instance, a procedure costing thousands at a hospital can be ‘redirected’ to a nearby clinic for a small fraction of the cost.