You can’t improve what you don’t measure.

You’ve probably heard the saying, “you can’t improve what you don’t measure.” This definitely rings true in the world of employee health benefits. It’s crucial that benefits advisors have their finger on the pulse of what’s always going on with their clients. Especially when it comes to monitoring outcomes and outcomes.

Why is measuring outcomes important?

Understanding outcomes is key to ensuring that the health benefits in place provide your clients and their employees high value.  It’s also important in helping us ensure that the healthcare employees receive is making a clinical and financial difference.

How do I measure outcomes?

Measuring outcomes comes down to two things: ROI and VOI. In a recent blog post, we discussed the differences between the two and why they’re important. To determine ROI and VOI, you’re going to need to work with your benefits partners to provide you with data such as (but definitely not limited to):

• Claims data
• Member satisfaction surveys
• Readmission rates
• Effectiveness of care
• Timeliness of care
• Mortality

Many of your partners may already have outcomes data they can share with you.

Why is measuring costs important?

It goes without saying that the vast majority of your clients are concerned about healthcare costs. So, it’s important to keep an eye on costs so that you can guide them toward decisions that will save them money.

How do I measure costs?

Most of us are familiar with how to measure employee health benefits costs. You can look at how much your clients spend on healthcare in total, or you can look at each health plan member or employee. Then you can dig a little deeper into what is driving healthcare costs. You’ll want to look at a lot of the same data points as you would for outcomes. In addition, you should consider:

• Cost by clinical condition
• Cost by employee demographic (age, location, etc.)
• Cost by service category
• Cost by risk level

What do I do with outcomes and cost data?

This is where the rubber meets the road. You’ll want to identify trends, areas for improvement, cost savings opportunities, and more. Analyze the information you collected and implement strategies to address deficits. Some things to consider include:

• How can you better address high-risk populations?
• How can you help employees use their benefits more efficiently?
• Are the employee health benefits improving outcomes and lowering costs?
• How can you encourage the use of preventive care?

To help your clients make the best decisions about their employee health benefits, you must know what you’re dealing with. If you don’t accurately measure factors like costs and outcomes, how can you effectively guide them toward success?