Can you really reduce health expenses by paying docs more? Believe it or not, it’s a strategy that’s working for many employers.
Here’s how it works. A company pays doctors extra money to pay more attention to employees with chronic illnesses and offer care, and treatment they wouldn’t usually provide and wouldn’t usually be compensated for — helping to keep patients healthy.
In turn, the company saves money on health care in the long run because employees stay healthier longer.
Paul Grundy, IBM’s director of health care technology and strategic initiatives, sums up why businesses need the strategy in a Workforce.com article (registration required): “I can buy a damn good amputation for my diabetic. But what I can’t get is a good system in place to prevent the diabetic amputation.”
The concept isn’t new (it’s been around since 1967), but it’s getting attention again thanks to the ongoing healthcare crisis in the U.S.
Improve treatment, reduce costs
The point of the approach isn’t to save employers money. It’s to improve medical treatment quality. But companies end up saving money long term.
So far only larger firms, like IBM and Boeing, have embraced this strategy. But smaller companies may soon get in on the savings, too.
Many states have already established pilot programs to create medical homes for children with chronic illnesses.
States with programs in place: AL, IL, LA, NC, PA, NJ and RI.
Ones considering them: MN, CO, NH, OK, WA, ID and OR.
Potential for employee concerns
One fear surrounding the concept: Employees may become concerned they’ll have to change doctors.
The approach employers are considering to alleviate that fear: Don’t ask employees to leave their current doctor, but rather add a physician coordinator (someone who helps manage a person’s health and medical care) to the mix.
