Andy Neary argues employers can cut health-plan costs through active management, not just bigger networks. A Colorado knee replacement cost $175,000 at one facility and $75,000 less at another, with five hospitals in the same system charging different prices. He urges employers to help employees find the right care.
Chapters
Last week I talked to you about the importance of medical management. This week I want to show you why it's important. You see, right now you're giving your employees access to a network of doctors and hospitals. And the long held belief is the bigger the network, the better it is for your employees. But that's exactly why this medical ID card is being used like an unlimited company credit card. Let me show you how. What you're looking at here is data for a knee replacement in the state of Colorado. The red bar represents the health care facility and the average price it charges. And the squiggly heartbeat looking line is the quality and the outcomes at that facility. Facility. So imagine if you had an employee who needed a knee replacement and they could have it done at one facility for $175,000, or they could have it done at a different facility of higher quality for $100,000 less. What would you tell them to do? Or how about this? Can you imagine if you found out that not one health care system charges the same price? What you're looking at here is five different prices from five different facilities for the same knee replacement, all within the same healthcare system. So you can see why it's important that you must help your employees access the right kind of health care. And if you're truly invested in reducing the cost of your health plan, it's imperative you use medical management so your employees can find the right care at the right time, at the right place, and at the right price. Now, if you'd like to know how you could access that data I just shared with you, shoot me a message and let's schedule a call. Until next time, bear down, focus on the target and strike out the status quo.
