CEO 2005 Healthcare Costs
Initiatives

According to a December 2004 Business Roundtable CEO Economic Outlook Survey,
Chief Executive Officers consider healthcare to
be the greatest cost pressure in 2005. A top priority of CEOs will be to capitalize on opportunities to improve healthcare costs. 1

The Business Roundtable is an association of CEOs from leading U.S. corporations with a combined workforce of more than 10 million
employees. The Roundtable is committed to advocating public policies that ensure vigorous
economic growth, a dynamic global economy,
as well as the well-trained and productive U.S. workforce essential for future competitiveness.

Capitalizing on opportunities will present
obstacles. Business Roundtable President John J.
Castellani says “Bringing health costs down is an enormous challenge that will take the sum of
many efforts….by putting our heads together…
(we can) begin producing better results”.

The initiatives established by the Business Roundtable are:

•    Improving and deploying the healthcare      system’s information technology.

•    Gathering and communicating substantive
     information on costs and outcomes to      consumers and employers.

•    Involving and empowering consumers with
     initiatives for improved healthy lifestyles
     and healthcare decisions.

The Business Roundtable founded the patient safety initiative, known as the Leapfrog Group, four years ago. The Leapfrog Group, which is
funded by the Robert Wood Johnson Foundation and other corporate and organization members, has developed provider performance comparisons as well as hospital recognition and rewards that focus on quality practices. In an effort to reduce medical errors, the Leapfrog Group has established standards that include technology, such as an online system to order prescriptions, and specialized staffing, such as fulltime doctors for intensive care units.

These quality standards would save an estimated 60,000 lives and lower associated total costs by $10 billion each year. According to Mr. Castellani, the importance of the Leapfrog Group is only part of what the Business Roundtable wants to accomplish. Commitment, cooperation, and imagination will help businesses overcome the
challenges and economic issues of healthcare costs.


1 . www.businessroundtable.org


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