Aaron Sheedy, Chief Operating Officer & Co-Founder
Skyrocketing healthcare costs and complex insurance structures have become increasingly difficult for large employers to navigate.
Employers, who often provide healthcare coverage to their employees, continue to feel escalating financial pressures as they seek to attract and retain staff. According to a new report, U.S. employers’ healthcare costs will reach more than $15,000 per employee in 2024, representing an 8.5% increase from 2023.
While employers are assuming more ownership of the healthcare journey for their employees, payor price hikes often shirk real oversight.
Employers have looked to digital health tools to manage expenses, provide employees with inexpensive care opportunities, and increase satisfaction with their benefits.
It is essential for health systems to leverage a digital health integration platform to remain competitive in this rapidly changing market.
Breaking the Cycle
Employers are increasingly taking a more active role in managing their employees’ healthcare. According to Kaiser, 58% of small firms and 99% of large firms (50 or more employees) offered their workers some form of health coverage, totaling 59% of all companies offering health benefits.
While this trend offers certain conveniences and administrative advantages, it also comes with challenges. Employers and employees often have little control over care costs, which can result in reduced patient volume and lost revenue for hospitals. Solutions are needed to break this cycle and create a more sustainable healthcare ecosystem.
The Power of Proximity
Colocation is one approach to tackle this challenge.
Consider Qualcomm and Scripps. Scripps helps manage Qualcomm employees’ healthcare by treating specific conditions and at-risk patient populations.
A digital health integration platform further enhances this setup by surfacing relevant patient tools offered by the employer for providers, improving the quality of care and revenue capture while bypassing traditional payors. Scripps leveraged Xealth to proactively identify, educate, and communicate its offerings to Qualcomm members. The results?
- 190% increase in enrollment in Vida
- 16% bump in Lyra enrollment, with page views also jumping 130% and 15% in these programs, respectively
- 27% overall patient conversion rate
By actively seeking partnerships, health systems can expand their reach and provide high-quality care to a broader range of patients. A digital health integration platform is pivotal in making the healthcare journey more accessible and efficient for patients and providers alike.
How Health Systems Can Entice Large Employers
To entice large employers, health systems must leverage digital health assets that reduce the cost of care while improving quality for the company’s employees. Conversely, health systems must consider supporting digital tools that employers already have chosen. When it comes to the latter, there can be friction when there is a desire to keep digital health tools separate from the EHR.
Real-time clinical decisions are crucial, but many health systems lack the necessary data to make them. Risk considerations, such as whether the employer is fully insured or self-insured, significantly shape the healthcare landscape. Digital health solutions are particularly beneficial for large employers with aging workforces, with abundant opportunities for chronic care management.
The partnership between health systems and nearby providers can offer employers and their employees a comprehensive solution. Digital health command centers can map out the entire patient journey, ensuring that care starts at the right point and progresses through cost-effective interventions. This approach benefits all stakeholders in the following ways:
- Employers: Cost management, employee productivity, customized benefits, compliance and reporting
- Employees: Access to health information, convenience, personalized care, cost transparency
- Health Systems: Improved care coordination, enhanced efficiency, data-driven decision-making, revenue growth
Digital health integration platforms like Xealth can bridge the gap for large employers with multiple locations. Health systems are now forming national coverage networks in major cities, enabling employers to offer the same healthcare experience to employees across different areas.
Rethinking Healthcare Delivery and Adapting to Change
The healthcare industry continues to evolve, and large health systems must adapt to thrive in this changing environment.
Partnership opportunities, whether through joint ventures or mergers, are on the rise. Health systems should strategically assess the major players in their areas and seek opportunities to increase patient populations while sharing risks.
If health systems are considering relationships with self-insured employers, Xealth’s Digital Command Center (XDCC) can be a valuable asset. It offers efficiency through its one-stop interface and provides insights into using digital apps and content across the enterprise.
Embracing digital health benefits health systems and empowers employers and employees to take control of their healthcare journey.
Integrating digital health solutions is a crucial step toward a more efficient, cost-effective, and patient-centered healthcare system. By breaking the cycle of rising healthcare costs, collaborating with large employers, and implementing Xealth’s solution, your health system can remain competitive and position itself for success.
Reach out today to see how we help health systems like yours thrive.