Success Stories

Health Care Organization with Provider Network and Multiple Facilities

Services – Comprehensive Benefit Review; Employee Survey and Focus Groups; Benefits Redesign

The Situation
The organization was going through a period of rapid growth, with expanded services and areas of focus. Plus, the competition for talent, particularly among nurses and key specialties, was at an all-time high. Though increasing benefit costs were a major concern, employees had largely been “insulated” from such issues in the past.

Key Challenges

• An entitlement mentality, with expectations of employer paternalism, was deeply instilled across the organization.
• While benefit plans far exceeded benchmarked norms, employees did not view the program as market-competitive.
• With in-network medical services provided by the employer, there was an issue of “confidentiality” of health information.

Our Approach

• Interviewed 40 managers (including Administrative Council members, senior managers, and key staff in various departments) to gain an understanding of the hospital’s business needs and objectives.
• Conducted 16 focus groups with a cross-section of employees representing all departments, positions, and shifts.
• Reviewed current health program, welfare benefits, and retirement program.
• Performed a benchmarking study of benefits at other health care facilities and area employers.
• Developed recommended program changes to produce greater value to the organization and its employees.

Results

• Identified potential savings of $1.1m to $1.8m through health care redesign (including change in prescription program, addition of third tier, program coverages closer to industry norms).
• Identified additional savings of $50,000 to $100,000 by integrating preventive benefits into medical plan, reducing wellness reimbursement, and consolidating insurance benefits.
• Developed PTO program to replace sick leave; with addition of STD plan, offered potentially significant savings through reduction of liability.
• Recommended retirement program changes (earlier eligibility and vesting, “automatic” participation, skewed match) designed to improve perceived value to employees while remaining cost-neutral or only a slight cost increase to the hospital.