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226 California Hospitals Share Health Care Insights

Guest Blogger 9/13/2016
Guest Blogger


For fourteen years, Keenan has presented important benchmark research for the health care industry in California through our annual Benefits Strategy Survey. Participants in this survey have the unique perspective of being both providers of health care services as well as purchasers of health care benefits for their employees.

The detailed and timely information from this survey provides significant insights for gauging health care benefits programs, developing best practices and strategies for achieving optimum results from those programs, and, most importantly, managing costs.

Here are some of the key findings from the 226 hospitals responding to the survey:

  • The Affordable Care Act (ACA) has created additional work for California hospitals. While some have absorbed the additional responsibilities internally, most have outsourced some of the administrative work.
  • Population health programs in California hospitals continue to evolve. Thirty-seven percent have implemented a comprehensive population health management program to assist in containing their health care benefit costs and improve employee productivity. Few, however, are using a full best practices approach.
  • California hospitals, on average, experienced a relatively low increase in per-employee medical cost. Annual medical cost per covered employee is $13,044, with health care organizations typically paying 90% of the annual cost of employee-only coverage for their most popular plan. Just under half offer at least one medical plan at no cost to the employee.
  • blog_health_care_costsThe top four benefit program objectives identified by survey participants are cost containment, improving the health of their employee population, ACA compliance and offering a competitive benefit program that assists their recruiting and retention objectives.
  • Hospitals identified a variety of anticipated cost reduction approaches, including shifting cost to employees, reducing dependent load, improving health of employees, better managing prescription drug benefits and channeling care back to their own facilities.

We greatly appreciate the organizations that participated in the 2016 Health Care Benefits Strategy Survey and whose information will help health care providers across the state develop innovative ways to meet the challenges they face.




blog_richterAbout Steve Richter
Steve Richter is Senior Vice President for Keenan HealthCare and serves as the executive director for the Keenan HealthCare Benefits Strategy Survey project.