Saving Money and Increasing Quality?

Saving Money and Increasing Quality?

A change in leadership in the Office of Human Resources promises to save Utah State employees money and increase the quality of services. Under the new organizational structure, Clark England is looking for ways to save employees money, and Terry Hodges is pursuing a vision for improving healthcare services.

England, who served as director for Human Resources for the past 23 years and is two years from retirement, has assumed a new role in which he will find ways to reduce the costs associated with medical insurance. His background in financial management and economics makes him uniquely qualified to provide leadership in the analysis, usage and fiscal accountability of benefit pool dollars. England said these savings will not reduce or cut valuable programs, and they are not a response to the recent cost increases proposed by Blue Cross.

"Realized savings in one area can mean reallocation of dollars to programs and coverage and reduced out-of-pocket drain that is now experienced by faculty and staff," England said. "For example, a one percent cost reduction in the $22 million health insurance program will produce $220,000 in savings."

Less than two weeks in his new position, England unearthed redundant programs and cost-savings opportunities that might mitigate having to raise the employee premiums for 2004-2005.

Among the immediate actions that are proposed for the 2004-05 contract are disallowing prescription coverage for items where viable over-the-counter alternatives exist, with the provision that prescriptions may be allowed for those items where medical necessity can be shown.

"A great example is the over-the-counter drug, Prilosec," England said. "Several years ago, a generic Prilosec was developed and a month's supply sold by prescription for $93. A USU employee paid an out-of pocket-cost of $28 and the university paid $65. Now, there is Prilosec over-the-counter for which a month's supply sells for $22. Period. No cost to the university and less out-of-pocket for the employee."

England said that acid reflux medications are in the top five of the 10 most used at the university.

Hodges, who spent 21 years as associate director of Human Resources, has assumed the director's helm. His vision for HR is all about quality.

"We want to hire, develop and retain the highest quality employees," he said. "At the same time, we are going to find ways to provide the highest quality healthcare that's out there."

Hodges is investigating many avenues that include prevention, healthier life-styles and health advocates. "It's too soon to discus the details," Hodges said. "But we are not going to limit our vision while exploring the possibilities."