Healthcare Cost Governance: New Frontier for Shared Services/Global Business Services?

What is "healthcare cost governance"? Why is it so important to large self-insured organizations?With healthcare costs growing at nearly 3 times the rate of inflation, it is now the second largest "people" expense behind salary. It's projected to continue to grow at 6% per year through 2023, per the Medicare administration. Healthcare represents about $13,000 per U.S. employee, with the employer typically picking up $10,000 of that total. So, for a 10,000 employee U.S. based company, that’s $100 million per year in expenditures with another $30 million being borne by employees.Medical bills and their coding is extremely complex, with a staggering error rate pegged at about 12.1% per the fiscal 2015 Medicare audits. These error rates vary widely depending upon the medical product or service, with an error rate of 39.9% for what is considered "durable medical equipment". Add to this that while the employer ultimately bears the bulk of the cost, they often have little to no influence on the medical provider selected. The level of care varies dramatically across medical providers and facilities, with only 7% of the 4,000+ hospitals in the United States garnering Medicare’s 5 star rating. And sadly, there seems to be no meaningful correlation between cost and quality.So, SSON is spearheading a campaign to learn more about healthcare costs, specifically: how you and your team can "move the needle" on cost and quality of healthcare for your organization.Learn what best practices are being deployed by leading edge companies like Walmart, Boeing, GE, Lowes and Catholic Healthcare. Hear first hand from practitioners as they start to explore how their shared services/global business services organization can play a role in better safeguarding & optimizing their healthcare spend.This is a leading edge topic that should be of great interest to both HR & Finance leaders. Let us know what you are doing by emailing me directly.[inlinead]

Healthcare Cost Governance: New Frontier for Shared Services/Global Business Services?

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