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In Health Care, Better Outcomes Cost Less

In a study of Medicare patients by Harvard University, it was determined that Medicare spent less, and outcomes were better at high quality hospitals when compared to low quality hospitals. In fact, when looking at 5 of the most common surgeries performed, Medicare paid 7% less overall when patients were treated at the best hospitals. Other studies have put that number as high as 22%. In addition to the savings, and even more alarming, is the fact that the mortality rates were more than twice as high at low-quality hospitals. So, yes, better outcomes can cost LESS when it comes to health care.

Smart employers are capitalizing on this in terms of lower costs for their plan AND better health outcomes for their employees and their families. They put systems in place (with the help of a proactive consultant) that arm their employees and their families with the critical quality information they need to be smart consumers of health care. How could this be implemented in your plan to both drive down costs and improve outcomes for your population? It’s easier than you might think. We are happy to share strategies that have been developed by the country’s largest employers.

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