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Innovative Quality Healthcare Collaborative

Bringing together leaders and decision makers from a variety of businesses, the DFW Business Group on Health is a regional, employer-sponsored healthcare coalition.

We understand that employers want to provide health care benefits that meet their employees’ needs and offer the best value. In 2012, metroplex employers spent an average of $11,214 per employee annually for health care benefits, a 3.4% increase over 2011 costs. Costs in 2013 are expected to increase by 6.2%. Employees’ out-of-pocket share will climb to $3,001 on average in 2013.*

*Source: Aon Hewitt

Objective

DFW area employers (the purchasers of healthcare) desire to collaborate directly with providers (the suppliers of healthcare services) to create improved care processes focused on providing patients (employees and dependents) with high quality, safe and efficient healthcare around targeted conditions. Initially, the collaborative will focus on uncomplicated lower back pain, but DFWBGH intends to develop processes for other conditions as well.

Opportunity for Savings

DFWBGH employers, representing about 75 companies and 750,000 employees and dependents in North Texas, spend approximately $4 billion in healthcare annually. We’ve used the overall spend as a sample of the opportunity for savings when you reduce variation and waste from the process of care for uncomplicated low back pain. Assuming DFWBGH employers steer 25% of their members with low back pain to the preferred providers, the potential estimated savings falls between about $16 M and $42 M annually.

You can use the calculator to determine your opportunity for savings, if you add your Company’s total spend in this region and then enter an estimated % of penetration.

SAMPLE

To calculate your potential savings, enter your company's total spend in North Texas and then enter an appoximate % of participation. This would likely be higher if you are applying some plan design steerage options.

Enter Your Company's Total Spend

Enter Estimated % Penetration

Input Total Medical/ Rx Spend
7% 11% 17%
MSK Range $ $ $
 
12% 24% 36%
LBP Range $ $ $
 
15% 30% 40%
Potential Savings $ $ $
 
LBP Penetration % $ $ $