Health and the welfare of U.S. business.
Business leaders continue to blame the skyrocketing cost of health care for jeopardizing the global competitiveness of U.S. industries, and they continue to turn to Washington for the solution. Yet after a study of 16 countries, Wharton researchers David Brailer and R. Lawrence Van Horn have discovered that health care costs do not directly hinder U.S. competitiveness. Their conclusion: there is indeed a health care crisis in the United States as well as a competitiveness crisis. But the two are unrelated, and confusing them makes it difficult to solve either one. The real problem, according to the authors, is the hands-off approach that employers typically adopt when it comes to health care. No matter how Washington responds to the health care crisis, employers must explore their own role in ensuring the health of their work force. And they must realize that their role can be a strategic one. Instead of containing costs by fine-tuning benefits packages, companies can control costs and improve health care delivery by treating health care like any other crucial component of production. Brailer and Van Horn propose three strategies for managing health care delivery: First, companies must intervene in the supply side of the health care market. This may mean creating a clinic alone or with other companies, or joining with other companies to procure health care. Second, companies need to translate corporate health benefits into the most cost-effective set of services at the local level. Finally, companies must encourage and educate employees to participate in decisions regarding health care delivery.(ABSTRACT TRUNCATED AT 250 WORDS)
Wharton School of Business.
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Brailer
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Van Horn
D003365:Costs and Cost Analysis; D003659:Decision Making, Organizational; D003695:Delivery of Health Care / Q000191:economics / Q000458:organization & administration; D004465:Economic Competition; D017049:Employer Health Costs; D006264:Health Benefit Plans, Employee / Q000191:economics / Q000458:organization & administration*; D007221:Industry / Q000191:economics* / Q000458:organization & administration; D017146:Models, Organizational; D010934:Planning Techniques; D014481:United States