“At the end of the day, it comes down to the issue of incentives: We do what we’re incentivized to do.”
– Gavin Newsom
The key to good outcomes in healthcare is to make sure patients get the medical care they need from doctors who have the resources they need. With 1/6th of the United States economy tied directly to healthcare, the resource problem is not one of limited funds but rather of incorrect incentives. For example, the latest Alvarez & Marsal & Equilar study showed that the average Healthcare CEO receives a “golden parachute” of 25 million dollars upon dismissal.
The purpose of bringing up this report is not to state that Healthcare CEOs are overpaid—they are worth what the market says they are worth. It is, however, to show that the reason alternative healthcare options such as subscription-based healthcare, telemedicine, and self-funded healthcare captives are so often discussed in the weekly blog posts, is because they put money towards doctors, treatment, and affected decision makers. Traditional healthcare has too much overhead to incentivize positive outcomes for employers, employees, and their families. That’s why BenefitCorp consultants offer alternatives (with correct incentives) as the best options.