MSK Employee Health for Health Systems: What Leaders Need to Know
The Problem: Rising MSK Costs for Health Systems
Like all large employers, health systems face soaring musculoskeletal (MSK) costs for their workforce. Traditionally, hospitals didn’t worry about MSK expenses because:
- Costs were manageable
- Absenteeism wasn’t a concern
- In-house providers (PTs, orthopedists) were available
That’s no longer the case. Post-COVID, MSK costs are skyrocketing, staff shortages persist, and accessing in-house care is difficult. Even though health systems bear the financial risk for MSK treatment, their own specialists remain incentivized by fee-for-service models.
As hospitals and health systems continue to merge, their employee bases continue to expand. As most large employers do, health systems self-fund their employee health and wellness. This means that they assume full financial risk for their most valued population. Any unnecessary surgery or treatment not only goes against the bottom line from a financial perspective, but it also increases workforce absenteeism and can cause additional financial losses if contingency staffing is required to cover this work gap.
What Makes Health Systems Unique?
Unlike other self-funded employers, health systems have in-house MSK care teams—PTs, pain management, and orthopedic specialists. Ironically, this hasn’t reduced costs and may even exacerbate them.
What’s the Solution?
A virtual-first, integrated approach to MSK care.
Why Most Digital MSK Solutions Fall Short
Many self-funded employers have adopted digital MSK solutions focused on self-guided exercise therapy to cut costs. However, these “wellness benefits” mainly serve low-acuity employees (who drive only 20% of costs) rather than the high-acuity patients driving 80% of expenditures. To learn more about this, check out our previous post as well as a recent writeup by Benjamin Schwartz, MD, MBA
Most digital MSK solutions fail because they:
- Lack clinical supervision and long-term engagement
- Are selected by brokers, not scrutinized for clinical validity
- Don’t integrate with a health system’s care model
For these reasons, many health systems have avoided adopting digital MSK solutions. Their objections include:
- Lack of clinical validity – An app alone won’t reduce unnecessary surgeries.
- In-house resources – “We already have PTs and orthopedics.”
- IT concerns – Either fearing costly integration or resisting non-integrated solutions.
- Slow decision-making – Lengthy sales cycles and frequent leadership changes.
How Can Health Systems Fix MSK Employee Care?
To curb MSK costs while improving workforce health, health systems need:
✅ Multidisciplinary, physician-led care
✅ Rapid access (within a week)
✅ Convenience (before work, during lunch, after hours)
✅ Better specialty care coordination to prevent patient leakage
Health Systems Have Three Options:
1. Build an In-House Brick-and-Mortar Solution (Not Feasible)
- Requires co-located providers and long appointments
- High operational costs and scheduling inefficiencies
- Unsustainable for scaling multidisciplinary care
2. Develop a Homegrown Digital Solution (Not Practical)
- EMRs are built for billing, not patient engagement
- Custom development requires millions in tech investments
- Ongoing support and innovation demand massive resources
3. Partner with a Comprehensive Digital MSK Solution (Best Option)
A qualified digital MSK partner should offer:
✔ Physician-led, multidisciplinary care (real clinicians, not bots)
✔ Fast, convenient access via telehealth
✔ Engaging, interactive exercise programs
✔ Seamless referral pathways to in-house specialists
✔ Integration with EMRs (without IT headaches)
Taking Action
MSK conditions will remain a top cost driver for health systems. The key is balancing virtual and in-person care—not every employee needs a surgeon, but not every digital solution provides adequate care.
If you're a health system leader looking for a digital MSK solution that truly works, learn more about Protera Health and how we seamlessly integrate within your ecosystem to drive MSK cost savings and employee health improvement, all while eliminating leakage of specialty care services to external groups and practices. Oh, by the way, the 4x ROI helps too.
