by
Sean Ruck, Contributing Editor | October 20, 2014
A new approach
"A trend we're encouraged by is one where an employer steps to the fore and begins to negotiate with providers, and is more active in the health plan," said Kelly. "Calling it consumer-driven health care is simply pushing more costs down the line. We think a potential solution is for employers to look at the landscape of medical providers in their region, and say to the hospital, 'Our employees are going to have babies, so could you tell us a bundled rate of what it would cost for a routine delivery?'"
That cost could then be communicated to the employees, but even better, the employer is more likely to get the answers they need and can gather historical data, with any new employees able to benefit instead of having to go through the process anew.
Kelly also encourages employers and hospitals to sit down and talk business. "In New Jersey, we arranged a meeting between a school district and hospital, and it was the first time the two had ever had a meeting or even a single discussion, yet the school district was sending over $10 million a year to the hospital. They were even laying off teachers to pay for their health insurance plan, but the discussion helped to solve some of the problems."
How hospitals benefit
Beside the obvious benefit of avoiding fines as states pass health care cost transparency laws, hospitals can also benefit by bringing in more customers. The facilities that are well-known for fair and clear pricing will have a leg-up on their competition. Of course, that's if all other things are equal - most people aren't going to bargain shop when it comes to putting cost over quality for a major operation.
But Kelly thinks while consumers may drive reform, the employers are more likely to lead the charge. "Using the New Jersey school district as an example, with 500 employees, they're going to be able to get things done quicker when negotiating with a hospital. They can basically put out an RFP and have the hospital take notice."
"We think there are a lot of initiatives moving in the right direction, but it's a big, complex process and it's hard to change cultural methodology that has been in place for so long. Our prediction is that if local employers and health providers can have an open dialogue, everyone will benefit," Kelly said.
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