In today’s business environment, companies are developing faster, employees can be accessed 24/7, smart technology is taking over, industries once coveted are crumbling and changes in the nature of work and its leadership are evolving. How has the role of a CEO evolved in this new business paradigm?
The role of the Chief Executive Officer has shifted from being the main point of communication between the board of directors and corporate operations to a fluid leader that navigates an organization through strategic, operational and financial challenges. In years past, it was the responsibility of Human Resources to procure the right healthcare plan and benefits package for a company, but that responsibility was almost always delegated to an insurance company. Who owns the insurance line item of the P&L? CEO’s are taking ownership of an out of control trajectory of health care spending. Amazon, JP Morgan, and Berkshire Hathaway are the tip of the iceberg in employers making the decision to actively manage these expenses. The staggering cost of employee health insurance will be close to $15,000 per worker by next year and companies are drowning in healthcare expenses.
So how does a CEO shift this paradigm to take control?
The average company in American spends 20-30% of its health care dollars on orthopedic surgeries over a five-year period. A progressive CEO seeks out innovative, smart solutions to directly address the largest costs. High-cost, high-risk orthopedic surgery could leave employees out of the office for weeks with many surgeries leaving employees still living with orthopedic pain. A solution like, Regenexx, which specializes in minimally invasive interventional orthopedics, has allowed employees a non-surgical option to treat chronic pain while also costing a company thousands less in medical expense. In fact, companies that have underwritten this type of innovative care have reduced their orthopedic expenses by up to 84%.
Flip Your Expense into Your Asset
Healthcare expense is one of the top three business costs for corporations. Jeff Immelt, former CEO of General Electric, recognized that he spent $3 billion annually on healthcare for employees. He took it upon himself to see the opportunity to maximize both the value of that investment and the value that investment created for employees. Meaning, by flipping this expense and looking at how to reduce the expense of the revenue dollar, it is a resource that can grow the revenue of the company. CEOs must actively negotiate and manage their healthcare plans and expenses while empowering human resources to own personnel relations and benefits education.
With over 850 billion dollars being spent on orthopedic surgeries per year and science changing so rapidly, CEO’s need to demand better and more unique options under healthcare plans. Looking to new technologies, embracing alternative healthcare practices and rethinking the traditional corporation roles, including their own, will boost a company’s bottom line.