Published in 2010 by John Torinus Jr., chairman of Serigraph, Inc., “The Company That Solved Health Care” provides a compelling case study of how a medium-sized business managed healthcare costs effectively while enhancing care quality. As chairman of a global manufacturer with a significant local footprint in Wisconsin, Torinus implemented strategies that resonate deeply with the proactive approaches we champion at Valhalla Business Advisors.
Reflecting | The Past and Present
It has been over a decade since Torinus shared his insights, and the landscape of healthcare and benefits has evolved significantly. Yet the foundational strategies he described—emphasizing primary care, consumer-driven healthcare, robust data analytics, personal responsibility, and targeted incentives—are more relevant than ever. These principles mirror the approaches Valhalla Business Advisors continue to refine and advocate for in our client engagements.
Key Takeaways from Serigraph’s Journey
Self-funding: Serigraph’s decision to be a self-funded employer allowed them to tailor their stop-loss levels and third-party administrator services precisely. This autonomy is crucial for designing benefits that truly meet employee needs without unnecessary overhead. Read this early blogpost from Valhalla about, ‘What precisely are we, as a self-funded plan sponsor, paying for?“
Consumer-Driven Healthcare: By employing a Health Reimbursement Arrangement (HRA) with rollover features, Serigraph effectively aligned employee “skin in the game,” incenting employees to make informed healthcare decisions. This approach is vital for fostering responsible consumer behavior. And, as prescription drugs continue to become an increasingly expensive aspect of the employee benefit cost category, Valhalla’s white-glove approach to supporting members stands out as increasingly important!
Incentivizing Smart Choices: Serigraph’s incentives—like reduced costs for using Centers of Value and cash rebates for choosing cost-effective procedures—demonstrate the power of aligning interests through thoughtful reward systems. And Valhalla is uniquely positioned to help our clients by avoiding the conflicts of interest present in the majority of benefit brokerages today!
The Pillar of Primary Care: Regular mini-physicals, an onsite clinic, and a robust wellness program underscored the value Serigraph placed on primary care, which is fundamental to preventative health and long-term cost savings. In order to support these types of initiatives with clinical resources, Valhalla is pleased to include a medical director in our value proposition. Learn more about Dr. Molckovsky here.
Commitment to Transparency: Torinus’s frustration with opaque healthcare pricing led to initiatives that not only clarified costs but also educated employees on price variation, helping them become savvy health care consumers. Valhalla’s unique model for offering leading edge data solutions to clients, as described here, helps solve for these market failures in price discovery.
Lean Principles in Healthcare: Applying lean manufacturing principles to healthcare management, Serigraph aligned with providers like ThedaCare to enhance service quality while controlling costs—illustrating the benefits of cross-industry innovation. Some ideas from Valhalla that capture instances of these ideas – such as direct contracting – were a topic of a seminar earlier this year in Lancaster (at approx. the 5:30 mark):
Valhalla Business Advisors || Different. Better.
In “The Company That Solved Healthcare,” John Torinus provided a blueprint that remains highly applicable today, more than a decade after publishing his book. Valhalla Business Advisors is committed to adopting these enduring principles to the evolving needs of our clients, ensuring that our solutions are not only different and better but aligned with the needs of those we serve.
SAMPLE SCOPE OF WORK
