Experiments To Cut Health Care Costs Emerge As Corporations’ Frustrations With High Prices Boil Over
From on-campus doctors to plans that are negotiated directly with nearby medical systems, which can earn bonuses for keeping employees healthy, big companies are looking for ways to drive down the huge line item on their budget.
Fed Up With Rising Costs, Big U.S. Firms Dig Into Healthcare
At its Silicon Valley headquarters, network gear maker Cisco Systems Inc is going to unusual lengths to take control of the relentless increase in its U.S. healthcare costs. The company is among a handful of large American employers who are getting more deeply involved in managing their workers' health instead of looking to insurers to do it. Cisco last year began offering its employees a plan it negotiated directly with nearby Stanford Health medical system. Under the plan, physicians are supposed to keep costs down by closely tracking about a dozen health indicators to prevent expensive emergencies, and keep Cisco workers happy with their care. If they meet these goals, Stanford gets a bonus. If they fail, Stanford pays Cisco a penalty. (Humer, 6/11)
In other industry news —
The Wall Street Journal:
Stryker Makes Takeover Approach To Boston Scientific
Stryker Corp. has made a takeover approach to rival Boston Scientific Corp., a move to create a medical-device giant and the latest effort to consolidate a corner of the health-care industry that has produced a raft of large deals lately. Boston Scientific has a market value approaching $50 billion, so a deal would be one of the largest in a year that is shaping up to be one of the busiest ever for mergers and acquisitions. (Mattioli, Dummett and Cimilluca, 6/11)