Derive Competitive Advantage from Lower Benefit Costs
Health care cost containment is no longer an employee benefit problem. It is a major economic issue. Every organization must have a clearly defined strategy to identify and address the root causes of health care costs within their organizations. Organizations that can outperform their competitors in managing health care inflation by just two to three percentage points per year will enjoy a significant competitive advantage.
“There is no question that workplace wellness is worth it. The only question is whether you’re going to do it today or tomorrow. If you keep saying you’re going to do it tomorrow, you’ll never do it. You have to do it today.”
-Warren Buffett, Chairman, Berkshire Hathaway
Achieving improved financial results requires reducing demand. This necessitates engaging employees in their own care, helping employees to become better consumers of health care and effecting real changes in behavior. To get results, the most senior leaders in the organization must take responsibility for this challenge personally. They must lead by example, incorporate health improvement strategies into the discussion of economics and financial performance of the organization and they must commit to making health and well being part of the culture of the organization. This takes time, but it is the only way to make an ongoing and meaningful impact.