CEO of Company That Kept Trend Flat for 10 Years Reveals ‘How To’
Posted on May 12, 2014 by DrEric
I was very fortunate to be a speaker at an employee benefits conference in Charleston, SC last week for about 80 employers and their benefits consultants. The keynote speaker at the conference was John Torinus, CEO of Serigraph and author of the book ‘The Company That Solved Healthcare.’ I have written previous blog post about John Torinus in ‘1,000 Employee Company Invests $2M to Lower Healthcare Costs: Yields 15:1 ROI’ and ‘The Company that Solved Healthcare’s 4-Point Winning Formula.’
John Torinus’ speech was great and it went over very well with the audience.
He summarized his company’s keys to lowering healthcare costs and improving healthcare quality with the following 4 initiatives:
1) Go self-funded: He wanted his company to benefit financially from the management improvements in healthcare that they were making and being self-funded was the best way to do that. He said he did not want to be part of a ‘pool.’
2) Put in a CDHP: He said the jury is in on CDHPs and the data has shown that they lower costs by 15%-30% while maintaining or improving healthcare quality. He cited data that showed that compliance with preventive care was higher for employees on CDHPs and fears of ‘underutilization’ by employees as a result of the high deductible have proven to be unfounded.
3) Emphasize primary care: John Torinus accomplished this at Serigraph by having an onsite clinic staffed by nurse practitioners. The care there is free to employees and as a result he said over 90% of his diabetics are now under control. He said the reason that other industrialized countries like Great Britain and Germany had healthcare costs 50% lower than the US is not because they have a ‘single payer,’ but instead because they emphasize primary care.
4) Payment reform: He said that fee-for-service payment to providers needs to go the way of the dinosaur. He also blamed himself and his fellow CEOs for not demanding payment reform sooner. He believes employers need to drive payment reform from the bottom up with direct provider contracting and bundled, guaranteed case rates for procedures. He has already set up guaranteed rates for hip and knee replacements for his employees at a local hospital.
What do the employee’s think? John Torinus said the thing employees like MOST about Serigraph is the health plan. He said an employee recently left and during his exit interview the employee said the thing he would miss most was the health plan.
What a great story. I was fortunate to speak with John Torinus for 10 minutes prior to his speech and found him very approachable and engaging. The experience made my week.