ESD Institute Releases Recommendations to Reduce Healthcare Waste

Hopes of making Michigan healthcare an attraction for business

SOUTHFIELD, Mich. — The Engineering Society of Detroit Institute (ESDI) releases its recommendations for reducing inefficiencies and waste in healthcare via the “Waste in Healthcare: A Symposium Report.”

“Employers are not sure if they can carry their employees over the next 18 months. They cannot predict the expenses associated with the provision of healthcare coverage,” says Christopher J. Webb, JD, FESD, ESDI Co- Director. “A two-layer system – comprised of a non-mandatory first-tier and a second, catastrophic tier – could significantly lower the cost of coverage for Michigan residents. Given the high percentage of healthcare coverage in the total cost of hiring employees, a system that dramatically lowers this cost would be a highly effective tool in bringing jobs and investment to the State.”

The report, released today, further explains the two-tier concept and how ESDI’s “Green Zone” may be an effective way to implement this delivery system. As such:

“… the ESDI recommends that the Governor of the State of Michigan appoint an independent, nine-member blue-ribbon Waste in Healthcare Commission consisting of employer, labor, insurer, administrator, provider, physician, academic, governmental, and nonprofit stakeholders. Members of the commission would serve on a volunteer basis. ESD would serve as the administrator for the commission. The charge of the commission would be to present its findings to the Governor within three months of its formation.”

ESDI would like to extend a special thank you to those companies that participated in the symposium and those that sponsored the Report. Participating companies: Albert Kahn Family of Companies; Automotive Industry Action Group; Center for Healthcare Research and Transformation; City of Detroit; DHR International; Dickinson Wright PLLC; Donna Craig & Associates, PLC; Electrical Workers’ Joint Board of Trustees; Ford Motor Company; GlaxoSmithKline Vaccines; Health Decisions, Inc.; Heath Plan of Michigan; Hospice of Michigan; Michigan Academy of Family Physicians; Michigan Health & Hospital Association; Michigan Purchasers Health Alliance; Michigan Health & Hospital Association; Oakland County; Ogletree, Deakins, Nash, Smoak & Stewart, PLLC; Palmetto GBA; Part D Advisors; Patient Safety Planning Group, LLC; Pfizer; POH Medical Center; Sanofi-Aventis; The Liebold Group, LLC; Thomson Reuters; and Walbridge.

Sponsors: Albert Kahn Family of Companies; Beaumont Health System; Citizens Insurance; Hartland Insurance Group; Henry Ford Health System; Kitch Drutchas Wagner Valitutti & Sherbrook; Management & Unions Serving Together; Michigan Association of Health Plans; National Electrical Contractors Association; PRISM Inc.; The Rackham Engineering Foundation; Thomson Reuters; and Whirlpool Corporation.