Is Your Company Getting Its Money’s Worth?
Originally Published in RMP Advisor, April 2009First, Can We Really Measure Healthcare ‘Value’? YES!
‘Value’ is sometimes in the eye of the beholder, but it is always some combination of the cost and quality the healthcare services that you are purchasing on behalf of your employees. At RMP, our mission is to help employers to maximize the value of their healthcare purchasing dollars—to get the most “bang for your buck”.
FACT: We’re NOT getting value today. A new study shows that U.S. Workers And Employers Are At A Significant Disadvantage Compared With Global Competitors.
The Business Roundtable, an association of the largest companies in the United States, recently published a study that defines health care ‘value’. The Health Care Value Comparability Study compares the value of the US healthcare system compared to our five major industrialized competitors (Canada, France, Germany, Japan, and the United Kingdom, called the “G-5”), as well as three major emerging competitor countries (Brazil, India, and China, called the “BIC Group”). Based on a 100 point ‘value’ scale, the US ranked 23 points below the G-5 group of advanced countries, and 46 points behind the BIC group of three developing countries. According to the study, “this country’s health care system, in its average performance, is becoming increasingly expensive and burdensome to businesses and families”.
So I’ll Wait For President Obama To Fix The Problem? Right?
Not recommended. At RMP, we believe that fixing the problem requires both a top down and a bottom up approach. The government clearly has a role to play, but you as an employer and a ‘purchaser’ of health care services also have a role to play. Focus on those factors that you can control. You have a choice of being proactive or reactive. If you are not doing everything within your power to maximize the value of your healthcare purchasing dollars, you are most likely falling behind your competitors.
What’s The Government Likely To Do (From The Top Down)?
Good question. We don’t know for sure, but the employer based system for health benefits will remain for the foreseeable future. We agree with the Business Roundtable study, which states that “health care delivery needs a new business model: one that puts customers in the center and uses the power of the market to lower costs, improve quality, create more consumer choice and expand accessibility.” The Report recommends a four-pillar plan to place the US health care system on the PATH® to a competitive healthcare system:
- Empower consumers with information and technology to make better decisions.
- Provide consumers with more affordable health insurance options.
- Engage all Americans to take a more active role in their health care.
- Offer health coverage and assistance to low-income, uninsured Americans.
What Should Business Owners and Senior Managers Do (From The Bottom Up)?
First, commit yourself and your organization to being proactive, rather than reactive. You can implement recommendations 1, 2, and 3 from the Business Roundtable TODAY. Don’t wait for the government to fix the problem, but rather take control of those aspects of your health care purchasing that you can control. Learn about consumer driven health care, including HSAs and HRAs. Give your employees incentives to live a healthy lifestyle, practice prevention and wellness, and use the healthcare system appropriately and wisely. It is a ‘win-win’ for employers and their employees.
At RMP, we believe that there are better ways to purchase health insurance today, and you owe it to your organization and your employees to learn how.
“If You’re Not Part of the Solution, You’re Part of the Problem” — Anonymous