As the New Year approaches, economic
challenges confront local employers,
including rising costs of health care benefits. How can businesses overcome
these challenges?
Smart Business asked Barry Arbuckle,
Ph.D., president and CEO of MemorialCare
Medical Centers and chair of California
Hospital Association, for advice.
Where can employers start?
Good health is good business. In California,
healthier lifestyles programs could save $1.7
billion annually, according to the California
Endowment (see July 2008 workplace wellness column). The health cost of a low-risk
45- to 54-year-old worker is $2,081 annually
compared to a high-risk worker of $5,813.
Costs to employers can be minimal. Instead
of building a fitness center, offer employees a
pedometer and mealtime walking programs
and sessions to learn how to achieve better
health. Ask hospitals, public health departments and community-based organizations
like American Cancer Society and American
Heart and Lung associations to share information and resources on low- to no-cost
screenings, prevention and healthy lifestyle
programs on-site and in the community.
What is the role of health plans?
Many health plans offer workplace assessments, screenings and educational programs
at little to no cost. Open enrollment — when
employees select benefits for themselves and
their families — is also critical (see August
2008 health plan enrollment column). And
ensure hospitals and physicians included in
your health plan are part of a larger system of
care. A health care system with multiple locations and thousands of physicians offers
more comprehensive services and the latest
in equipment and procedures.
What will the future work force look like?
The health of California’s 9.4 million children and your future work force is at risk.
Fifteen percent are uninsured, one-third
are overweight and 60 percent don’t reach
state math and reading goals (see September
2008 column on investing in the future).
Employers can ask local hospitals and health
departments to offer information and programs on healthy lifestyles for children.
Employers should also press for legislation
that promotes healthy foods in schools,
expands exercise programs and ensures
comprehensive programs for kids with
chronic diseases like asthma and diabetes.
What about the uninsured?
In California, the 6.8 million uninsured and
6.5 million underinsured impact hospitals
and employers. About 75 hospitals and 70
emergency rooms have closed in the last
decade (see January and April 2008 columns
on the business of medicine and its state of
emergency). Coupled with low government
reimbursement, critical labor shortages,
unfunded mandates and more, most
California hospitals are on the critical list.
Employers are not immune. The cost of the
uninsured and inadequate reimbursement
means higher premiums. Employers can help
hospitals stay afloat by supporting comprehensive health reform statewide and working
with representatives at the national level to
resurrect Association Health Plans that
permit small employers to come together to
purchase health coverage at lower rates.
How does information technology fit in?
Electronic medical records take the guess
work out of health communication by
placing patients’ medical history onto computers and information systems, allowing
clinicians to better coordinate care through
immediate access to secure patient data (see
February 2008 legible medicine column).
This minimizes waste and inefficiency of
manual and paper-based processes and
maximizes clinical quality through support
at points of decision-making. Employers
should advance efforts to establish standards for sharing data among health
providers through legislative advocacy and
encourage government financial support of
health IT expansion and implementation.
What is the role of quality?
Employers should query physicians and
hospitals about their quality initiatives. Do
they have teams like we do at MemorialCare
that design and implement best practice
tools, offer education, and monitor outcomes
and opportunities for improvement? Are clinical outcomes documented and easily accessible? How focused are they on supporting a
strong culture of patient safety? What type of
awards have they received from external
organizations for quality and safety?
What else can employers do?
Ask local hospitals and health plans to help
perform a benefits audit to ensure you are
getting the most competitive price and package for your benefits. Encourage policymakers to advocate for health care-related issues.
Offer scholarships for students wishing to
pursue health-related degrees. And consider
increasing philanthropic contributions to
nonprofit health care organizations to ensure
your employees and the communities you
serve have the best quality care available.
BARRY ARBUCKLE, Ph.D., is president and CEO of MemorialCare Medical Centers (www.memorialcare.org) and chair of the California
Hospital Association. Reach him at [email protected] or (562) 933-9708. MemorialCare Medical Centers include Saddleback
Memorial Medical Center in Laguna Hills and San Clemente, Orange Coast Memorial Medical Center in Fountain Valley, Anaheim
Memorial Medical Center, Long Beach Memorial Medical Center and Miller Children’s Hospital in Long Beach.
