CoreSource delivers the right benefit solutions to hospitals and health systems through our flexibility and unique service capabilities. By researching our own book of business, we decided to focus our efforts on three key themes:
- How do the health benefit plan costs and utilization for hospitals and health systems differ from other self-funded employers?
- What benefit plan design strategies are hospitals and health systems using to address the unique market and employee benefit issues they face?
- How can a hospital or health system determine the appropriate benefit plan strategy given their situation and organization objectives?
Through our research, we learned that:
- In general, health systems’ group health benefit plan costs are 6 percent higher than employers in other industries, due to a number of different factors including older members and higher utilization. Inpatient admissions, prescriptions, physician office visits are 8 percent to 18 percent higher and ER visits are 32 percent higher.
- Employees of hospitals and health systems are more cost-effective healthcare consumers, with better compliance rates, less bed days and higher use of generics.
- Most hospitals or health systems use one of five core benefit strategies to encourage members to use their domestic health services including benefit coverage financial incentives, domestic provider reimbursement levels and direct contracting. The last two account for 44 percent of health system strategies.
- Before determining an appropriate benefit plan strategy, hospitals and health systems should consider a number of factors, such as how costs and financial performance are managed, the value of reinforcing pride in the health system, and the best way to leverage existing affiliations and referral relationships.
To learn more, contact us for a full copy of our white paper.
