This Week's Herman Trend Alert Engaged Employees Increase Bottom Line Performance

The Herman Trend Alert March 4, 2009 Consumer-Driven to Save Money "change:healthcare" is a leading edge informatics company created to help individuals and employers save money on healthcare expenses. If you knew you could get the same procedure or service for hundreds or perhaps thousands of dollars less than what your physician or hospital charges, you could certainly make a more informed decision about where you chose to go. That's just what change:healthcare (www.changehealthcare.com) offers---the opportunity to see what other providers are charging for the same product or service. Their enormous database contains cost data on literally thousands of providers and drugstores. Over the last five years, employee healthcare costs have risen by 40 percent, while employers' costs have increased by 29 percent. During the same period, over six million employees have migrated (mostly by necessity) to consumer-driven health plans. We forecasted this shift some years ago. (To see the full study, click here) No one would disagree that for many, the costs are simply unbearable. They respond by either not going to the doctor, taking the medication, or having the procedure. "Most people don't apply the normal rules of consumerism to healthcare," said Robert Hendrick, cofounder and Chief Operating Officer of change:healthcare. "They do not think of medical care as a commodity." However, when quality care or the very same prescription medication is available at a much lower cost in the same metro area, then many of us will choose to take action. Typical corner drugstores, including the large chains, charge 30 to 40 percent more than some other providers, such as grocery pharmacies. In this economic climate, that savings is very meaningful. So what is the benefit for employers? After analyzing 12 to 18 months of past claims data, the company performs an analysis to look at the range of rates in the geographical area. The typical cost savings is substantial---between 25 and 40 percent. . . and the pharmaceuticals involved are not generics, but branded drugs. It is not uncommon for employer savings to exceed USD$250,000. Making people aware of their options allows them to make more informed decisions. Particularly in these challenging times, consumers will vote with their pocketbooks in the US and overseas. © Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Roger Herman and Joyce Gioia, Strategic Business Futurists. (800) 227-3566 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group, Inc." WHAT WOULD HAPPEN IF... What would happen if 25% of your top performers left in the next year? According to a recent study from The Corporate Executive Board, that may well happen to you! Turnover costs A LOT, especially when you lose top performers, and it comes right off the bottom line. Let The Herman Group and its team of very experienced consultants help you address your turnover issues right away. We have an impressive track record and stand ready to help you. Call Carol at 336-210-3547 for a no-obligation conference call. FIND OUT WHAT YOUR EMPLOYEES REALLY THINK AND FEEL Discover what's really going on in the hearts and minds of your employees. Our InnerViews interviewing service uses SPHRs and PHRs, certified human resource professionals to probe for the information you really need to know. Exit and Stay Interviews, as well as Why-Didn't-You-Take-Our-Offer Interviews. Call Rosalie Catalano at 937-416-7066, or read more at: http://www.hermangroup.com/retentionconnection/exit_interviews.html. BUSINESS IS PICKING UP Most employers are unprepared. The recovery will bring a new set of challenges for employers that have been in prolonged contracted mode. They will need more skilled workers or will need now to begin to upskill their current staffs. But organizations can not engage in Strategic Workforce Planning, when they don't know how. That's where The Herman Group can help. We can help you with your "People Review"----large or small---so that you will know who you will need and when you will need them... and we can also guide you to the best sources for the people you will need. For more information, call Joyce at 336-210-3548 or e-mail joyce@hermangroup.com. Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers. New subscribers are welcome. There is no charge for this public service. The Herman Trend Alert is received by over 30,000 subscribers in 78 countries, in addition to other websites and printed magazines. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Trend Alert service. Click here to sign up for the Herman Trend Alert. Subscribe or Unsubscribe to weekly Herman Trend Alert View this week's Herman Trend Alert Archived Weekly Herman Trend Alerts

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