U.S. firms gear up to battle rising healthcare costs

With the advent of technological advancements like telehealth software, patient engagement software and other additions, patients are availing of better facilities. But, the challenge of ever-rising healthcare costs prevails. Cisco System Inc. is taking control of relentlessly rising U.S. healthcare costs.

Cisco is getting involved in managing their workers’ health instead of relying on insurers to do it. It began offering them a plan that it negotiated directly with Stanford Health medical systems.

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According to this plan, physicians keep costs low by monitoring a couple of health indicators to prevent expensive emergencies. Eventually keeping Cisco employees happy with their care.

If the goals are met, Stanford receives a bonus, if they fail, Stanford pays Cisco a penalty. Costs for Stanford plan patients are 10% lower as compared to conventional coverage used by most employees. 

Amazon.com Inc, JPMorgan Chase & Co, and Berkshire Hathaway Inc plan to form an independent company to improve healthcare for around 750,000 employees, speculating to displace health insurers and industry middlemen.

This speaks volumes about the level of frustration among Americans about uncontrollably rising medical costs and the traditional insurers that provide them coverage.