SOTSQ Episode 25_11 8 2018

Last week I had an executive ask me, andy, you referenced the health care supply chain. What are you talking about? So what is the health care supply chain and why should you care? The healthcare supply chain is the chain of suppliers your employees buy their health care services from. And there are four key cost drivers that make up the supply chain. And they are. Inpatient fees are those costs associated with hospitalization. Outpatient fees are the cost associated with imaging and surgeries, prescription drug cost, and those costs associated with services provided in the doctor's office. Now, why should you care about these costs? Well, if you want to reduce the size of your health insurance premium, you have to start controlling your claims because claims are having the biggest impact on your premium. And the most effective way to control your claims is by focusing on these four key cost drivers. Because they account for 95 cents of every claim dollar your employees spend. You see, if you bring greater efficiency to the healthcare supply chain, you will control your claims and ultimately eliminate the negative impact your health insurance premiums are having on your bottom line. For one tip on how to get greater efficiency with the healthcare supply chain, let's schedule a call. Until next time, bear down, focus on the target, and strike out the status quo.