Benefits are taking up a continually greater share of employee compensation. This trend is as true for hospitals as any other industry. Keenan Health Care summarizes some recent trends for California hospitals. According to a survey of 83 California health care organizations (representing 219 hospitals):
- Benefits represent 28% of the employee compensation for the average California hospital,
- The average 2012 cost increases range are: 6% for HMO programs, 7% for EPO and PPO programs, and 8% for POS programs.
- Annual medical benefit cost per covered employee in 2012 is $11,616.
- 48% of California hospitals pay for employees’ entire health insurance premium.
- Most hospital organizations (68%) have an integrated PTO program, incorporating vacation, holidays and sick leave
- Most California hospitals (64%) offer a defined contribution retirement package, the remainder a defined benefit plan.
As a private practice family doctor struggling to keep up with double digit annual increases in employee health costs, I had opportunity recently to ask our hospital CFO how they manage for their employees. This was part of a conversation about how we might relieve the burden of rising health costs for our community. The answer: since most of the hospital employees use services within their own system, they are really only on the hook for the transaction costs. No sense of urgency there…