November 24, 2008

It's time to partner!

Dean Halverson

More providers are finding their budgets squeezed by declining volume, most of which is coming from commercially insured and private pay customers. This is throwing off their profitability as more of their Medicaid and Medicare costs are not being balanced by the commercial payers.

There are a couple of issues around this. First, is this a short-term issue? Our belief is no. We believe we are seeing the early stages of true consumerism and the consumer is changing the way they use this service. While the current economic times are impacting some of this pullback, we believe the consumer will find that they are comfortable with the new pattern of use and while some rebound may occur there will be a net reduction.

The second question is; How do we correct the problem? This is challenging as it requires targeting of the groups that are reducing services. You need to talk to those that are commercially insured. These are generally part of the two thirds of us that receive our insurance through our employer. This means that talking to the employer indirectly gets the provider to the employee, who is commercially insured.

We believe that partnering is a great approach for providers to take in today's environment. Now is the time for the providers to be seen as a PARTNER in helping control costs and making the employee healthier and a better consumer of services. By partnering with employers and helping their employees you have access to the commercially insured population you so greatly need right now.

Employers show a new interest in Education, Prevention and Wellness. Many are now requiring Health Risk Assessments not only of employees, but in some cases their spouses! This is leading to targeted health improvement programs and some hope of long term savings by all. Being a partner is a great position to move into. WAVE can help you get there!

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