Family business owners, we need to talk about a pressing issue that's hitting us hard: the skyrocketing costs of healthcare and the dysfunction within the U.S. healthcare insurance industry. As leaders in family business who are committed to providing excellent benefits for team members, we find ourselves in a difficult position. Every family business owner we know has a deep desire to support their employees and offer competitive benefits, but our efforts are being crushed by an industry that prioritizes profit over people.
A Broken System
Dr. Robert Schmerling of Harvard Medical School highlights the inefficiencies and challenges within the healthcare system in his insightful article. He points out that despite the high costs, the quality of care remains inconsistent, and access to necessary services is often hindered by bureaucratic red tape and insurance policies that seem to work against patients and providers alike. WARNING – this took me down a rabbit hole that felt like an Alice in Wonderland (pun intended) journey. Shocking, unpleasant, and filled with new insights.
The Burden on Family Businesses
In our family business, Conveyance Solutions, Andrew and I like many of you, strive to offer competitive benefits to attract and retain top talent. However, the current state of the healthcare system makes this increasingly difficult. The premiums we pay are rising steeply and insurance companies are increasingly dictating the care employees receive. We’re not alone. In fact, a common story across many family businesses is that the care we want to provide for employees falls short, and the financial burden of providing health benefits erodes the ability to invest in other areas.
The Reality of Healthcare Costs
This really hit home for me after I posted about the issue on Linked In and got connected with Allison De Paoli, founder of Altiqe. Allison is the producer of a documentary expose about the healthcare industry and her research brings a series of dirty little secrets about the healthcare industry to light. For example, "35% of healthcare costs are due to waste, fraud, and abuse." This highlights the significant inefficiencies within the system that drive up costs for everyone. Moreover, one surgeon mentioned in the trailer for her documentary reveals, "we found that we could charge 1/10th of what so-called 'non-profit' hospitals charge and still make a profit."
I encourage you to watch the trailer and sign up for the documentary to learn more about the egregious imbalance of power that exists, putting low to mid-market business owners at a significant disadvantage. These insights underscore the need for a thorough reevaluation of how healthcare services are priced and delivered – and how we as business owners choose to purchase these benefits for our employees.
Seeking Solutions
We’re not alone! The frustration is palpable among family business leaders. Many of us are seeking alternative solutions to navigate this challenging landscape and work as well as we can with the broken system. For instance, Heather Falcone, the People First Leader and Process-Obsessed CEO of Thermal-Vac Technology mentions the importance of education, advocacy, and access as principles that are essential in helping team members understand and make the most of their healthcare plans. Kudos to Heather and other people first leaders like her. What could we do if we brought the full force of the family business community to bear down on this issue?
A Collaborative Effort
There must be a better way! It's clear that addressing this issue requires a collective effort. Family businesses, medical professionals, and industry experts need to collaborate to develop models that prioritize patient care and reduce unnecessary costs. This could involve exploring self-insurance options, leveraging group purchasing power, or advocating for policy changes that address the root causes of high healthcare costs.
It's evident that the current healthcare system is not sustainable for family businesses trying to provide quality benefits for their employees. By sharing our experiences and working together, we can push for meaningful changes that benefit both our employees and our businesses.
TAKE ACTION: If you’re interested in joining the conversation, click here to register for our Family Business Healthcare Innovation Forum.