Hospital Benefit Plans

Hospitals and health and fitness systems are generally considered as companies that handle the ill and, more progressively, motivate precautionary health and fitness. However, hospitals are also companies and some of the greatest companies at that. In non-urban areas, a hospital is generally the prominent company, and it’s not unusual to find a health and fitness program with thousands of employees. With that comes a large benefit program for employees, which can be very costly and a big part of a hospital’s financial strategies. Consulting company Towers Watson lately finished its “2012 Hospital Industry Benefits Benchmarking Study,” which analyzed the benefits plan conditions of 48 hospitals and health and fitness systems across the country. The average number a survey participant was 5,000 to 10,000 employees, while the average size was 20,000 employees.

Two Towers Watson benefits experts, Joey Dizenhouse, senior health and fitness and group benefits advisor, and Sue DeFelice, senior pension benefits advisor say hospital benefit programs are going through a period of major change right now, just like those in the rest of the industry and in other sectors as well.

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Medical centers are interested in guiding their employees to their own suppliers and services. The expenses of health and fitness benefits signify more than one-third of a hospital’s total benefits expenses for employees, higher than most other sectors. As both a company and provider, hospitals have a unique advantage over other types of companies: They can direct their employees to use the system’s “domestic providers” to save on expenses, Mr. Dizenhouse says. This strategy is growing in reputation for two reasons. Medical centers are able to better handle the health and fitness of their employees, and their payments for worker medical care reuse to their own program instead of going to a competitor. “If employees use household suppliers when possible, a medical care facility is able to cure employees as sufferers,” Mr. Dizenhouse says. “That has always been key.”

Group health and fitness programs are being targeted toward hospital employees. Through outreach and education, hospitals have ramped up their initiatives to advertise maintenance in their areas. If people regularly see their doctor, that may lead to less trips in the more costly hospital inpatient setting.

Trends in Hospitals for 2013

Hospitals & Health Networks together with the American Hospital Association released a 2013 environmental check, a comprehensive review of the health care field that recognizes market forces likely to impact the field. The report identified 10 key themes which are generally not new to health care, but jointly indicate the industry’s sweeping changes. They are:

Information technology and e-health, such as ICD-10 execution, mobile health, big data, details exchange, and EHRs

  • Insurance and coverage, such as State Medicaid programs spending and registration growth, consumer-driven health plans, and Medical health insurance costsPolitical issues, such as the decrease of Medical health insurance company rates, the Supreme Court ruling State Medicaid programs expansion unconstitutional, and the decrease of federal support for hospital State Medicaid programs and Medical health insurance programsProvider organizations and doctors, such as the increase of retail treatment centers, the creation of a culture of performance quality and responsibility, and the need for hospitals to operate more leanly
  • Quality and individual safety, such as penalizations for low quality analytics, cost benefits opportunities in supply-sensitive care, care synchronization during hospital-to-home changes, and concern that public reports fairly and perfectly reflect hospital performance
  • Science and technological innovation, such as the capability to build and enhance virtual company networks, the use of mobile phones and tablets, the growth of e-visits, and the facilitation of hospital care through wireless technology
  • Human resources, such as trust between doctors and hospitals, demand for highly trained individual capital, and shortages of primary care physician
  • Consumers and census, along with a development of adult and weight problems in children, an increase in serious conditions, middle-agers working past the age of 65, and families providing the majority of proper care to the elderly
  • Economy and finance, along with a negative outlook for the charitable health care sector, a growth of hospital mergers and products, and $200 billion dollars of annual waste in health care