Health Care Organizations Expect Health Care Reform Measures to Drive Higher Costs

Health Care Organizations Expect Health Care Reform Measures to Drive Higher Costs

Survey Respondents Placing Renewed Focus on Efficiency and Quality of Patient Care

NEW YORK, Aug. 11, 2011 — A new survey of more than 200 professionals in U.S. health care organizations reveals costs will rise significantly with health care reform, but will be balanced with increased access to care while a renewed focus on organizational efficiencies will improve patients’ quality of care.

The Health Care Reform Readiness Survey, released today by Buck Consultants, A Xerox Company, indicates many health care organizations anticipate patients will benefit the most from reform, while employer health plans and the hospital system itself will experience challenges.

Employee Benefits
The majority of health care industry experts (75 percent) who responded believe health care costs will rise as a result of reform, with 43 percent indicating they expect a significant increase. To offset increased costs in their own plans, more than 90 percent of respondents anticipate passing some or all of these additional costs on to their employees through higher employee contributions or reduced coverage. Some employers (48 percent) plan to facilitate improvements in employee health by increasing their wellness initiatives, and virtually none of the respondents expect to reduce wellness programs.

Many employers remain committed to retaining their employees’ health plans, as 57 percent of respondents stated they would not consider dropping their coverage; 46 percent of whom said they felt it would make their company uncompetitive in hiring and retaining their workforce. However, 28 percent of respondents would consider eliminating health care benefits because of reform.

Organizational Changes
Most respondents indicate they expect to make organizational changes, create new management and leadership initiatives, and focus on efficiency and quality efforts in response to reform.

The most predominate ways in which health care organizations plan to adjust their business to adapt to this new era of health care reform within the next three years include:
• Assessing IT requirements (82 percent)

• Structuring quality measures with their physicians (69 percent)

• Developing an integrated network (60 percent)

• Developing medical home services (41 percent)

“Health care employers especially should be on the forefront of this changing health care delivery market to reinforce new and emerging strategies and manage costs,” said Sheryl Grey, a principal with Buck Consultants. “Implementing plan changes aligned with quality and wellness initiatives, and the use of telemedicine, social media and smart phones allow employers to improve care.”

Respondents expect these business changes to support increased efficiency and improved quality of care. Sixty-six percent of survey respondents believe health care reform will have at least some impact on increasing access to care. Health care organizations are either currently implementing or planning to make additional changes to improve care within the next three years by:
• Placing a greater focus on cooperation and collaboration around patient care (84 percent)

• Taking steps to reduce patient readmissions (74 percent)

• Using electronic health records (85 percent)

• Using evidence-based or predictive-modeling technology tools (66 percent)

• Creating an Accountable Care Organization (43 percent)

A clear majority of the organizations surveyed believe that the quality of health care over the next five years will improve or stay the same, and many are implementing these changes to ensure that efficiency is increased and that the overall quality of care improves within their own health care system.

About Buck Consultants
Buck Consultants is a leader in human resource and benefits consulting with more than 1,500 professionals worldwide. Founded in 1916 to advise clients in establishing and funding some of the nation’s first public and private retirement programs, Buck is an innovator in the areas of retirement benefits, health and welfare programs, talent and human resource management, compensation, and employee communication. News and other information about Buck Consultants are available at Buck is an independent subsidiary of ACS, A Xerox Company.

About Xerox
Xerox Corporation is a $22 billion leading global enterprise for business process and document management. Through its broad portfolio of technology and services, Xerox provides the essential back-office support that clears the way for clients to focus on what they do best: their real business. Headquartered in Norwalk, Conn., Xerox provides leading-edge document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size. Through ACS, A Xerox Company, which Xerox acquired in February 2010, Xerox also offers extensive business process outsourcing and IT outsourcing services, including data processing, HR benefits management, finance support, and customer relationship management services for commercial and government organizations worldwide. The 134,000 people of Xerox serve clients in more than 160 countries. For more information, visit,, or For investor information, visit

Media Contact:
Ed Gadowski, Buck Consultants, A Xerox Company, +1-201-902-2825,
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