You know what’s really cool? When major change happens to an industry, entrepreneurial people find a way to make money off that change! I love America!
Obamacare, The Affordable Care Act, is having major changes to the healthcare industry and some forward thinkers are taking advantage. One company in particular is a startup out of New York, NY called Health Recovery Solutions. Here’s what Forbes had to say about what they are doing:
“For too many patients, hospitals have a revolving door: They leave, get sick again, and are quickly readmitted.
The Affordable Care Act aims to curb preventable return visits with heavy financial penalties: If 25% or more of the Medicare patients a hospital treats for pneumonia, heart failure or a heart attack are readmitted within 30 days of discharge, the hospital gets whacked with a 1% reduction in its Medicare reimbursements for every single patient it treats.
The penalties kicked in late last year, and those little 1% slices add up fast. “If a hospital gets $300 million a year in Medicare payments, that’s $3 million,” says Sandeep Pulim, a co-founder and chief medical officer of Health Recovery Solutions, a startup that aims to help hospitals cut their readmissions.”
How do they do it? They give each patient a tablet with a recovery plan, videos, instructions, etc. when they leave the hospital. Teach them how to use it and follow up with communications to ensure the patients is using and following the plan. Let’s say this helps stop 50% of readmissions – that saves the hospital $1.5M in penalties – lets say the service and equipment cost $750K – the organization still saved $750K by using their service. Pretty good ROI!
How does this help your New Hire Retention?
You could use the same methodology with your new hires! Let’s say your cost of hire is $5,000 per hire (which is very low for almost any kind of hire!), and you’re turning over 25% of your new hires. This is costing your company thousands of dollars each year. A tablet is $500 – you load it with content that helps a new hire not only adjust to your culture, but to their job – build a communication and followup plan – engage the hiring managers – reduce your new hire turnover by 50%. You will save thousands of dollars. Bam – there’s your business case ROI to buy tablets and build content to your executive team.
Another company has already shown you the road map – you just need to make some adjustments and build content – it takes time, but it isn’t too hard for HR to do. It’s funny how having to carry around a tablet, as a new hire, will change your culture. People will see them and think ‘hey, that’s a new hire – I should say something. I should do something to help them” – signs and symbols are powerful that way. Having to log into each day and see what the plan is for them each day, helps new hires focus on where they are going with the company – where they need to be at. The power of direction and goals, helps add comfort to the uncomfortable nature of starting a new position, in a new company. Having a built in communication tool between you, the hiring manager and the new hire will definitely let you know sooner when something isn’t right and let you address it.
Innovation happens best when major change is about to hit. If you look close – Obamacare will give us some great ideas in HR!