Skip to main content

The Benefits and Costs of Apprenticeship: A Business Perspective (Helper et al., 2016)

  • Findings

    See findings section of this profile.

    Evidence Rating

    Not Rated

  • Review Protocol

Absence of conflict of interest. 

Citation

Helper, S., Noonan, R., Nicholson, J.R., & Langdon, D. (2016). The Benefits and Costs of Apprenticeship: A Business Perspective. U.S. Department of Commerce.

Highlights

  • The study’s objective was to examine the costs and benefits of an apprenticeship program at sites that included apprenticeships in their workforce development strategy. This profile focuses on the apprenticeship at Dartmouth-Hitchcock Medical Center.  
  • The study used internal firm data on client services to assess costs and benefits of apprenticeships.  
  • The study found that Dartmouth-Hitchcock Medical Center had a positive return on investment from their apprenticeship program for employees.  
  • The selection of study sites depended on the data available for a cost-benefit analysis. This analysis was based on certain assumptions, so the results should be viewed as estimates and may not apply to the experiences of other employers of apprentices.  

Intervention Examined

Dartmouth-Hitchcock Apprenticeship

Features of the Intervention

In 2014, Dartmouth-Hitchcock Heater Road Medical Center started a medical assistant apprenticeship because there was a shortage of medical assistants in the area. They recruited apprentices through a marketing campaign aimed at locals who were unemployed or underemployed, veterans, and recent high school graduates. The program provided classroom training through Vermont HITEC, which also handled the selection of candidates. Apprentices completed 11 weeks of classroom training, and after 3 weeks, they began shadowing experienced medical assistants. Once the course was finished, they entered a year-long on-the-job training program, receiving pay increases at 6 months and again at 12 months.  

Features of the Study

This study is a cost-benefit analysis of an apprenticeship at Dartmouth-Hitchcock Medical Center in Lebanon, New Hampshire. The site was selected because it had available data that enabled the authors to conduct a systematic evaluation of apprenticeship return on investment (ROI). At Dartmouth-Hitchcock, the annual class size ranged from 15 to 20. Notably, 54% of apprentices entered the program with an academic degree beyond a high school diploma, and 27% were over the age of 40. The data sources for the cost-benefit analysis included primary care appointment files, as well as colonoscopy and flu vaccine procedure records. A statistical model was employed to evaluate the impact of the apprenticeship on key performance measures compared to a similar clinic without the apprenticeship from 2010 to 2016. 

Findings

  • The study found that the average cost per medical assistant apprentice at Dartmouth-Hitchcock was $59,700, which is about $22,000 higher than hiring a fully trained medical assistant.  
  • Medical assistants reduced overtime costs by $24 for each hour worked by easing the administrative burden placed on physicians and nurses. More assistants also led to lower physician turnover, saving the medical center $250,000 for every new doctor hired.  
  • Medical assistants increased the health center’s overall capacity and resulted in 318 additional booked hours per month. This increase brings in around $31,800 in extra monthly revenue, or about $7,000 more per apprentice each year.  

Considerations for Interpreting the Findings

This study chose its sites based on specific criteria, focusing on programs believed to have a good return on investment. Also, the ROI analysis only included employers who had the necessary data for the study. This limits the generalizability of the study's findings.  

Reviewed by CLEAR

December 2024