Healthcare is a Top Challenge but CEOs Are Committed
After years of absorbing double-digit price increases with declining benefits, mid-market companies now expect increased healthcare investments to yield positive returns on investment.
May 21 2014 by ChiefExecutive.net
A whopping 90 percent of mid-market executives name healthcare costs as their top challenge. Yet, despite concerns about the rising cost of providing care, most middle-market firms are committed to continuing to offer healthcare benefits, according to a new report.
Eight out of ten mid-market executives reported viewing healthcare as a company’s responsibility to its employees, according to “The State of Healthcare in the U.S. Middle Market,” a report by the National Centre for the Middle Market at Ohio State University, which was based on a survey of 600 C-suite executives and HR or benefits decision makers at middle-market firms. The majority also see healthcare as providing value to their firms and as a key driver of talent productivity and growth, with more than 90 percent recognizing healthcare as critical to attracting and retaining talent.
In lieu of dropping coverage, middle-market firms are implementing other cost-management strategies, including wellness programs, on-site or remote healthcare access, sourcing low-er-cost healthcare and analyzing healthcare data. “Mid-market companies expect that by implementing these programs they can increase growth and productivity by 25 percent, decrease absenteeism by 22 percent and reduce healthcare costs by 17 percent.