The Problem with Point Solutions in Virtual Care and Telehealth

What Are Point Solutions – And Why Are They So Popular?

Point solutions are standalone programs designed to solve a specific problem (e.g., mental health support, digital MSK therapy, or behavioral health). Employers often adopt them to fill perceived benefit gaps. Yet the downsides are becoming clear.

For instance: According to one PwC report - 25% of employers manage over 20 healthcare vendor relationships, and most of the remainder work with 8–10 vendors for health and wellness services.

The result? Employers and brokers are facing higher administrative burden, siloed data, and a benefits experience that’s confusing for employees.

Fragmentation Hurts Utilization — And Costs

When employees are presented with multiple portals, apps, and platform log‑ins, engagement suffers. One benefit navigation firm found that employees often disengage because the ecosystem is too complex

Low utilization undermines the business case for any solution. Worse: When programs operate independently, it becomes nearly impossible to track meaningful outcomes or tie them to your employee benefits strategy or cost containment goals.

In contrast, virtual care or telehealth platforms that offer complete solutions simplify the experience. They put one point of access in front of the employee. Whether the need is urgent care, primary care, mental health, or chronic condition management — the solution is unified. This simplicity drives higher engagement and connects directly to outcomes.

Redundant Costs & Missed Insights

Every point solution carries its own contract, vendor rep, onboarding process, and data feed. When you stack multiple solutions, you accumulate costs — and often redundancy: Overlapping services, duplicate spend, and scattered insight.

According to Mercer’s recent analysis of point solutions:

“When budgets are tight… employers must know that every investment is adding value.” Mercer

By contrast, an integrated approach helps deliver consolidated reporting, clearer outcomes, and often better cost containment because you avoid overlapping services and vendor‑management burden.

Simpler, Smarter, More Strategic

Here’s a breakdown of how an integrated virtual care model enables better results:

✅ One access point for virtual primary care, urgent care, and mental health

✅ Fewer vendors to manage → lower administrative overhead

✅ Higher utilization because less friction for the user

✅ Real cost‑saving potential through improved preventive care, fewer ER visits, and better chronic disease management

In short: When your employee care ecosystem is simpler to use, it’s more likely to perform. And performance drives both engagement and measurable savings.

Choosing the Right Virtual Care Provider

When evaluating a potential partner in virtual care, ask these key questions:

Do they replace multiple point solutions with one integrated platform?
What utilization benchmarks and performance guarantees do they offer?
How transparent is their reporting and analytics?
Can they demonstrate outcomes tied to cost containment?
Are their services aligned with your overall employee benefits strategy?

An ideal virtual care provider will deliver a unified experience — helping you simplify vendor relationships while improving engagement and outcomes.

Point solutions are well‑intentioned, but the evidence shows drawbacks — from low utilization to administrative overload and unclear ROI. Employers looking for real value should consider virtual care and telehealth solutions offered by a trusted partner. Fewer portals, one access point, real outcomes, and true cost containment.

If you’re ready for a benefits strategy that’s simpler on the surface and smarter for your company, it’s time to choose a provider that does more than offers access. It delivers results.

Explore how First Stop Health’s virtual care model can support your employee wellness goals and benefits strategy. Let’s Talk