Connecting the Dots on STAT: Surging Health Care Costs, Stagnant Economy, Flat Wages


Cheyenne, Wyo., Oct. 10, 2016 – Dr. Hank Gardner, CEO and managing partner of HCMS Group, pointed out the link from healthcare waste to flat wages to economic stagnation in an op-ed column published on the healthcare news website STATLink to downloadable PDF.

He defined healthcare waste as over-treatment by providers, in the form of excessive testing and prescribing, and over-consumption by patients, such as taking and often demanding too many tests and drugs.

The column cited a recent HCMS study of wages and healthcare costs based on 140,000 people in the company’s research reference database. The findings showed how healthcare costs rising at 10 percent or more a year help hold wage increases to 2 percent or less.

“Taking money out of the pockets of consumers is deadly for growth in a consumer-driven economy,” Gardner wrote.

Don’t count on a government fix, he argued. Instead, private, non-government employers can carry out do-it-yourself, market-based healthcare reform. Gardner outlined the HCMS approach involving integrated data, advanced data analytics, incentive alignment, and the 5|50 Solution.

To drive real health care reform, look to what employers are doing


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