Home » Talent Management » HR/Employee Strategies » Healthcare is a Top Challenge but CEOs Are Committed

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.

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.

About Chief Executive

Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.