Dominoes They Are A Falling

If you choose not to read at least watch the video below!!

Having just returned from the 2018 World Health Care Congress, I now feel more focused on the job at hand than ever before. I define the job at hand as, helping employers restore predictability and sustainability to their health care supply chain, while at the same time, greatly increasing employee satisfaction in and around the benefits they are provided.  In addition to my Rosetta cohorts, there was a seemingly unlimited number of healthcare innovators in attendance. Doubtless, a number of these start up innovators will fail. While they may have great ideas, implementation, scalability, lack of long-term value and ill-defined value propositions will take a toll. However, there will be a number who will not only survive but thrive, in a market designed around a transparent health care system.

In addition to the innovators in attendance, there were also a number of traditional market players. Those most focused on more of an add on approach to the traditional contract / PPO plans. The thought process in this group very seldom includes dealing with the cost of care, but rather with managing access, deeper discounts, more restrictive contracts and continued lake of transparency.

While I strongly align with the innovators, there is value in understanding the approach and beliefs of those in the other camp. The insurance industry has done an exceptional job of defining and setting the rules of the game. Employers are at least comfortable with the rules, even if they are most uncomfortable with the results of the game. The results being in the majority of cases, higher premiums, deductibles, co-pays, out of pocket, employee cost and decreased overall satisfaction.

If you are a business owner I encourage you to connect and look forward to an upcoming series of short articles and videos on the “Evolution to Health Care Transparency”. Some will be by me, some by other consultants and some by industry leaders. I promise no solicitation, just a venue and opportunity to learn.

It is my assertion that the first domino has fallen. Many early adapters in the business world have already changed how their companies approach the financing of the “health care division” they never wanted but now have.  They are now managers of a health care supply chain, not simply purchasers of health insurance. These changes are allowing them to save 15 to 30 percent annually and hold future increases to 1 or 2 percent. These savings allow for greater business investment, improved infrastructure and additional capital. In other words, these early adaptors have a very real competitive advantage over many of their peers.