BHM Industry News, an online and printable newsletter released by BHM Healthcare Solutions takes a look at Behavioral Economics and the impact that providers, insurers, and employers are seeing based on the idea of “Pay for Prevention.”
Online PR News – 12-May-2010 – – BHM Industry News, an online and printable newsletter released by BHM Health Care Solutions, a healthcare consulting firm explores this issue in further detail. “We are always interested in keeping up with the latest trends in healthcare that could prove advantageous to our clients,” stated Danyell Jones, Director of Customer Solutions at BHM “this is why we thought that doing a piece on pay for prevention could really open people’s eyes to an idea that they may not have tried before to have a positive financial impact on their organization.”
“Pay for Prevention” has been an idea which has circulating for some time, but is gaining increasing momentum as healthcare professionals continue to explore ways to decrease healthcare costs for the general population. The basis behind “Pay for Prevention”, and idea which offers monetary incentives for healthy behavioral choices made by an individual targets some of the most chronic and costly diseases that face the general population, but that are for the most part preventable by making healthy behavior choices. Some of these preventable and costly diseases include cardiovascular disease, diabetes, obesity, and cancer. Healthy behavioral choices such as increasing exercise, improving dietary choices, and abstaining from smoking have been shown to prevent or reduce the effects of these diseases.
In a recent article appearing in the New York Times it was stated that “studies show that 50 percent to 70 percent of the nation’s health care costs are preventable.” Spurred on by this information some major employers such as Safeway and GE have begun to offer cash incentives for employees who choose a healthier lifestyle. Additional incentives are being offered by some of the nation’s major insurers. In exchange these insurers offer lower premiums for healthy choices, and business based cash incentive plans that pay employees money for meeting fitness goals, or abstaining from smoking.
Findings have consistently shown that offering rewards for good behavior has been vastly more effective than punishments for bad behavior. According to Gary Charness, economist at the University of California, “financial incentives can kick start healthy habits that can then become self sustaining.”
For the full article, and even more industry news please visit http://www.bhmpc.com/newsletter.html
BHM is a healthcare management consulting firm whose specialty is optimizing profitability while improving care in a variety of health care settings. BHM has worked both nationally and internationally with managed care organizations, providers, hospitals, and insurers. In addition to this BHM offers a wide breadth of services ranging including accreditation, financial risk management, clinical operations, quality improvement, and denial management.
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