Occupational health services are becoming more expensive – what can be done?
Occupational health care plays a significant role in the Finnish healthcare system, particularly in promoting the health of working-age people and maintaining their ability to work. However, in recent years, the costs of occupational health care have risen significantly, posing challenges for many companies. In this article, we examine the development of occupational health care costs, the factors affecting them, and ways to manage costs effectively.
Finnish occupational health care has traditionally focused on preventive measures. In recent years, however, there has been a growing shift towards medical care, partly as a result of changes in the financing system, the social and health care reform, and pressure from employers to recruit the best talent.
Market conditions and economic uncertainty
The cost of occupational health care has risen sharply. In 2023, spending reached €1.05 billion – a 6% increase on the previous year.
Since the outbreak of the war in Ukraine, the price of energy and raw materials has soared. This has, in turn, pushed up transport costs for health services as well as the cost of medicines and medical supplies.
Rising inflation and economic uncertainty have further fuelled price increases, as service providers pass on their own higher costs. At the same time, competition has intensified, with new players entering the market and challenging established providers.
Reluctance to scale back benefits
Many companies view occupational health care and employee benefits as long-term investments that enhance both productivity and their reputation as responsible employers. For that reason, there is little appetite for cutting back. The priority is instead to adapt in a way that maintains the quality, efficiency, and scope of services.
Tendering and optimising occupational health provision have therefore become more important than ever, as companies look to strike the right balance between cost and quality. However, for many small and medium-sized businesses, detailed analysis can be difficult due to limited resources.
What companies are telling us
A recurring concern among our clients is the unilateral setting of new price lists by providers – with no real means of influencing how costs develop. Occupational health services are often delivered in a way that makes it hard to see exactly what is being done, why, and whether it is always necessary.
Above all, companies need clear tools and actions to manage costs and align statutory and voluntary services. Many simply lack the in-house expertise, the systems, or the time to get to grips with the issue.
Our approach to overcoming these challenges
We believe the first step is to gain a clear and accurate understanding of your current situation and your goals.
Our clients particularly value the insight we provide through our current-state analysis and the practical measures we recommend for managing costs. We work to ensure the scope, availability, and quality of services are maintained – or improved.
Analysing the current situation
We begin with a comprehensive review of your existing occupational health arrangements – from contract terms to day-to-day implementation and cost breakdowns. Once we have a full picture of where your money is going and the outcomes achieved, we provide targeted recommendations for the future.
This enables you to keep costs under control and coordinate statutory and voluntary measures to maintain employees’ work ability.
Market comparison and follow-up
Next, we compare all available options for delivering your occupational health care. In addition to the statutory elements, the market offers a variety of ways to manage activities and costs.
We assess each option in terms of impact on the employer, the employee, service content, monitoring, and costs.
Our support often continues beyond the decision-making stage. We can help communicate changes to staff, negotiate with providers, and ensure agreed measures are actually implemented. We also monitor progress and keep costs in check.
The results
Our occupational health analyses and competitive tendering have delivered savings of up to 60%, with typical reductions of 25–30%.
In most cases, we assess occupational health and related employee insurance together, optimising the whole package and eliminating overlaps – often generating additional savings on company insurance.
Need help?
Controlling occupational health care costs is a complex challenge – but far from impossible. With careful tendering, process optimisation, and close collaboration with providers, companies can secure significant savings while maintaining high standards.
This ensures occupational health care remains a genuine asset – supporting employee wellbeing and the long-term success of the business.
If your company is facing challenges with occupational health care – or you simply want to explore potential savings and improvements – please get in touch using the form below. Our experts are happy to discuss your situation with no obligation.
Sources
Kela occupational health care statistics (SVT) (January 16, 2025) (in Finnish)
Statistics on occupational health care (SVT) (January 16, 2025)
