How to present the business case for healthcare quality to employers

Sean Nicholson, Mark V. Pauly, Daniel Polsky, Catherine M. Baase, Gary M. Billotti, Ronald J. Ozminkowski, Marc L. Berger, Claire E. Sharda

Research output: Contribution to journalArticle

Abstract

Many employers in the US are investing in new programmes to improve the quality of medical care and simultaneously shifting more of the healthcare costs to their employees without understanding the implications on the amount and type of care their employees will receive. These seemingly contradictory actions reflect an inability by employers to accurately assess how their health benefit decisions affect their profits. This paper proposes a practical method that employers can use to determine how much they should invest in the health of their workers and to identify the best benefit designs to encourage appropriate healthcare delivery and use. This method could also be of value to employers in other countries who are considering implementing programmes to improve employee health. The method allows a programme that improves workers' health to generate four financial benefits for an employer - reduced medical costs, reduced absences, improved on-the-job productivity, and reduced turnover - and uses accurate estimates of the benefits of reducing absences and improving productivity.

Original languageEnglish (US)
Pages (from-to)209-218
Number of pages10
JournalApplied Health Economics and Health Policy
Volume4
Issue number4
DOIs
StatePublished - Dec 1 2005

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ASJC Scopus subject areas

  • Economics and Econometrics
  • Health Policy

Cite this

Nicholson, S., Pauly, M. V., Polsky, D., Baase, C. M., Billotti, G. M., Ozminkowski, R. J., Berger, M. L., & Sharda, C. E. (2005). How to present the business case for healthcare quality to employers. Applied Health Economics and Health Policy, 4(4), 209-218. https://doi.org/10.2165/00148365-200504040-00003