Masters of Health Magazine October 2018 | Page 22

the cost the higher the quality over 98% of the time.

Healthcare is 20% of the economy so impacting health care costs by billions barely register on the radar, but for the employers creating EBITDA from health care the results are enormous. Inaction by the C-suite exposes them to unnecessary personal financial liability from failing in their fiduciary duties.

Healthcare is an experience where every encounter with a patient is a market of one and the buyer is becoming aware of their power in this transaction with the healthcare supply chain. Other industries recognize the efficiencies that come with managing the supply chain which is why Amazon is always looking at new logistics methods.

Healthcare buyers are now in a position to force price and quality transparency and control the cost of care and have solved health care’s most challenging problem — knowing what it the service actually cost. Those companies who choose to take the path of least resistance will place themselves in a very poor competitive position. Self-funded employers are turning over healthcare because their employees’ financial wellbeing has been ruined by the drastic increase in health care costs over the last 20 years.

The transformation has begun. If your organization chooses to “get on the train”, not only will you have a healthier and more productive workforce but your financial statements will reflect this in a significant way.