President
CurrentThere is a blind spot on your P&L that has been largely overlooked because you have been trained to overlook it. In fact, most business owners, C-suite executives, mayors, governors, and union heads have been trained to delegate this expense to non-P&L managers. This is because they’ve always thought there was no way to control this expense. In reality, they have been kept in the dark by the misaligned incentives in this multi-billion dollar industry. Warren Buffet once famously called GM “a health and benefits company with an auto company attached.” It has also been reported that Starbucks spends more on health insurance for its employees than it does on coffee beans. For most companies, healthcare is the second or third largest expense after payroll and raw materials. This puts you in the healthcare business! I have just one question for you—how is your healthcare business doing?
