Wonders never cease.
Just a short decade ago the VA medical system was
thought to be in shambles. Now we find that
reforms in the delivery of healthcare can and do
work! The much maligned VA healthcare system is
taking all the ‘Blue Ribbons’. The New England
Journal of Medicine has published a study
showing the quality of care received at veteran
health facilities is significantly better than at
others. Further, the National Committee for
Quality Assurance (NCAQ) has evaluated healthcare
plans on 17 performance measures. Guess who wins.
That’s right, the VHA system outperforms its
private sector counterparts in every single
category. But what do the patients think? The VA
has also outranked private-sector hospitals on
patient satisfaction surveys conducted annually by
the University of Michigan. Maybe most puzzling of
all is that this government run bureaucracy spends
only $5,000 per patient compared to the national
average of $6,300. According to Business
Week, the VA has maintained that level of
cost over an extended period that has seen
healthcare costs elsewhere rise dramatically.
While the national debate gropes around in the
philosophical dark for solutions to the healthcare
problems we face, there surely are some lessons to
be learned from this startling turnaround at the
VA. MORE
|
| |
We hear a lot about the
potential crisis of underfunded pension
commitments by business today and it is a serious
problem. But underfunded pensions are dwarfed by
the estimated $321 billion in underfunded
healthcare benefits to current and future retirees
for companies in the S&P 500 according to
Business
Week. To make matters worse for US
business, the Financial Accounting Standards Board
(FASB) may require that companies book this
liability, reducing shareholder equity by as much
as 9%! These numbers are pushing companies to
accelerate the current trend away from current
healthcare benefit packages. One new and
innovative approach is to setup accounts similar
to 401k’s but for healthcare. Under this defined
contribution approach, the company would make
contributions to an account for each employee that
would be their total liability for future
healthcare cost. The contributions would earn
interest until they are used by the employee.
Unlike the 401k, the funding would not belong to
the employee but it would be there until used for
healthcare during retirement. This essentially
caps the retirement healthcare exposure of the
company. When these funds are used up, an employee
must deal with his or her healthcare costs on
their own. Mercer Human Resources Consulting says
that about 5% of companies that offer retirement
benefit plans have now switched to a defined
contribution approach and 25% are considering such
a change. MORE
|
| |
As we move more and more
into a service economy, gaining productivity
increases becomes increasingly complex. The
fundamental unit of delivery – people – is not as
easily standardized as the production of a
product. This is compounded by the fact that
services typically deal directly with the customer
creating further variance in demand. But
competitive forces make it necessary to manage
service delivery and improve productivity. A
recent McKinsey article examines the problems
inherent in controlling and improving service
costs. They suggest three principles: Avoid
external benchmarks and compare performance
against internal conditions and standards; go
broad and deep in the organization beyond normal
financial accounting to get the relevant
information; and, establish performance
measurement and cost systems across the
organization. For a full discussion of these and
other factors CLICK MORE
|
| |
The first of the ‘Big
Box’ legislation designed to force large retailers
to pay a minimum amount for employee healthcare
was overturned this month by a U.S. District
court. Targeted specifically at Wal-Mart, the
Maryland law would have required the retailer to
either pay healthcare benefits equal to 8% of
payroll or contribute the difference to a state
fund for low income uninsured. "The act violates
ERISA's fundamental purpose of permitting
multi-state employers to maintain nationwide
health and welfare plans, providing uniform
nationwide benefits and permitting uniform
national administration," the judge wrote. While
Maryland plans an appeal, this ruling will also
impact similar laws under consideration in other
states. MORE
|
| |
The Internet is the
fastest growing segment of the retail market with
annual sales well over $100 billion. When you buy
something on the Internet, you are confronted with
the cost of delivery. From a purely theoretical
point of view the shipping costs can be looked at
as an alternative to the cost of making a trip to
the store. But consumers don’t make that
connection so pricing policy must include an
optimal combination of price and shipping.
Shipping costs are the top reason for abandoned
shopping carts online accounting for 52% of
customers leaving without completing their
purchase. However, if properly structured, pricing
policy can drive sales in the direction most
advantageous to the business while not adversely
impacting the customer. A recent study by Wharton
professor of marketing, David Bell, shows that
consumers favor free shipping over lower prices.
Bell analyzes the impact of shipping cost on
customer behavior and suggests alternative pricing
policies that can attract customers while
benefiting the seller. For a discussion of these
alternative CLICK MORE
|
| |
Hardly a person hasn’t
on occasion arrived at the office in a bad mood.
Or after starting the day feeling fine, something
happens on the job that puts us in a bad mood.
What affect do these moods have on our work? A
recent study at the Ohio State University Fisher
School of Business examined the impact of moods on
employee performance. The study confirmed what we
all know to be true. Employees in a positive mood
tend to be more productive than those with
negative feelings. But does it make a difference
whether the mood is brought to the job caused by
external events vs. internal on-the-job events?
Their findings concluded that the mood brought to
the office very strongly impacted the work of the
day while events occurring during the day had
significantly less impact on the employee. Of
course, to the extent possible this seems to
suggest that a company should try to spot
candidates during the hiring process that are more
consistently positive. Further, a business may
benefit from some sort of employee training in
dealing with common family and personal
problems. MORE
|
| |
The Illinois Chamber of
Commerce has announced a convenient new state tax
resource for business owners and tax law
professionals, created by JD Michael, LLC: the
subscription-based www.IllinoisTaxesOnline.com.
Subscribers access the latest information on
Illinois sales and excise tax laws. Subscription
price points are attractive for both individual
users and offices with multiple users, and the web
site is organized by tax categories so users can
access sales, utility, motor fuel, liquor,
cigarette, hotel/motel, and auto rental tax
information. Prospective users can preview the
Table of Contents and a sample section of the
service free of charge. To visit the site
click MORE
|
| |
| Current
Economic Indicators |
| Illinois
Chamber HELPLINE |
| Knowing what you can and
can't do will help you prevent costly mistakes.
Call our staff of HR experts. Let Pam Holleman
help you deal with problems safely and avoid
disputes. You can reach the Helpline toll-free at
800-322-4722. |
| |
SAVE 20% OR MORE ON YOUR
PAYROLL PROCESSING!
The
Illinois Chamber is offering an exclusive benefit
to Chamber members only! TruPay Corporation,
America's fastest growing payroll service now
offers its award-winning services to members of
the Illinois Chamber at special discounted rates
that could save you 20% or more. Click
here for more about this exciting new
opportunity.
Check out some of our other
programs and see how your membership pays with the
Illinois Chamber:
Learn more about these
programs and how they benefit your company when
you Join
the Leaders! |
| |
 The Chamber urges
all Illinois employers to recognize their Guard
and Reserve employees by signing and displaying
the ESGR Statement of Support. To get yours,
simply complete
an online form and you will receive a
personalized certificate that demonstrates your
support. Also visit the SBA Veteran's Business
Development web site for assistance to small
business owners that have employees activated in
the Guard or Reserves. Click MORE
|
The Exec
Report - Wood S.
McComb, Editor
Copyright © 2006 The Illinois
Chamber
|
