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HEALTH CARESTo the Editor:I read the roundtable discussion in the January/February 1988 issue of Chief Executive with interest. There is …

HEALTH CARES

To the Editor:

I read the roundtable discussion in the January/February 1988 issue of Chief Executive with interest.

There is a pressure point in the health care system that can be sensitized to the employer’s purchasing power-that point is the hospital.

The hospital share of the money spent on health care is increasing. There are cases where as much as 70 percent of an employer’s money is spent for hospital services. When physician services within the hospital are considered, this setting may account for 85 percent of the total bill. It makes sense to focus where the money is spent.

In order to control the hospital, one must control price. Hospital prices are high because utilization is down. This results in cost shifting to a declining business base.

It is possible to prevent cost shifting and turn health care into a corporate opportunity. By focusing on the hospital component, an employer can save as much as $420,000 anually for each 1,000 covered employees.

James B. Robb

President

MedicalControl, Inc.

Dallas, TX


SALUTE!

To the Editor:

I’d like to congratulate Bill Marriott on being named Chief Executive of the Year. It is indeed an honor he richly deserves!

Henry A. Walker, Jr.

Chairman

Amfac, Inc.

Honolulu, HI

CROSSED UP

To the Editor:

With reference to your article in the May/ June 1988 issue, “Return To Normandy,” I was there in 1944 and again in 1985. I visited the cemetery. I hope your comment is solely an oversight, for if you visit the cemetery, you will see that the first grave marker, front row, left, is a Star of David. And there are many more…not just 9,386 white crosses.

Howard W. Biederman

Former President

Allied Stores International, Inc.

New York, NY


STRAIGHT TALK

To the Editor:

As an Academic Trustee of the Marketing Science Institute, I have sat through numerous sessions on how to make a company more marketing oriented. Bob Lear in his “Speaking Out” column (May/June 1988), has provided me with valuable ammunition for the next such discussion.

Lear-as always-cuts through the fluff and, in plain English, gets to the heart of the issue. There is more good advice in Lear’s page than in the pages of scholarly journal articles or industry task force reports addressing the same issue. Who is not in favor of being marketing oriented?

What Lear does is give the harried CEO some specific advice, complete with some thoughtful warnings. I have sent my fellow Industry Trustees at MSI copies of his, column. With luck, all 40-plus MSI CEOs will soon receive a personally delivered copy of “The Marketing Oriented CEO” from one of their top marketing executives.

Donald G. Morrison

William E. Leonhard Professor of Marketing U.C.L.A.

Los Angeles, CA


CORRECTIONS

In our May/June issue, “An Inside Look at Succession Planning” misidentified the CEO of Avon who is Hicks Waldron. The author of Passing The Baton is Richard F. Vancil, not Robert, as was published.

Chief Executive welcomes letters from readers. Address letters for publication to the Editor, Chief Executive magazine, 205 Lexington Avenue, New York, NY 10016.

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