Strictly Business

How Complicated Does It Have To Be?

2009-11-13T19:40:30Z

I recently attended a health benefits enrollment information session at my university. The purpose of the information session was to inform employees (faculty & staff) of their health benefit changes and options under the new health benefits provider and plan administrator. The administration of both the enrollment process and the monitoring of the entire program is usually placed under the organization’s human resources (HR) management department. The HR department does an outstanding job in setting up the overall program and monitoring the program’s effectiveness and smooth operations. However, they can really only control so much in that they rely heavily on the selected healthcare organization to do its job and administer the health benefits program appropriately and in a user-friendly manner.

]]> While I watched the healthcare organization explain the benefits and the intricacies in the presentation, I couldn’t help notice the bewildered looks on the faces of many of the members in the audience, to include myself. To be honest, I have had over thirty years experience in the healthcare management field and understand most of the complicated issues associated with health insurance, benefit selection, and management of your healthcare expenses. The briefing we attended was fairly brief (less than 40 minutes) considering the level of detail and the complicated nature of the material. While the speaker did ask (numerous times) if anyone had questions and he did answer several questions, I could not help wondering whether all the other folks were somewhat overwhelmed about the choices and options that were presented to them. While I believe myself and others could have asked many in-depth questions, I sincerely felt it would have confused others even more and probably taken longer than the speaker really had to offer.

During the presentation, issues such as if you or your spouse opens a flexible spending account (FSA), then you are not eligible to open a health saving account HSA) and if you try to select certain options, you violate IRS rules and/or government statues that may apply. Also, some medical expenses apply to your deductible, but others do not, and whether you are in or out of network and what options you chose significantly affect your out of pocket expenses. It felt like you were in some TV commercial that indicates you can do this, but you can’t do that and certain exclusions may apply by law on every other Monday, unless of course you get your care on Tuesdays, but occasionally restrictions are lifted on holidays. The numerous permutations were enough to make your head spin.

To understand the magnitude of the situation, you basically must predict your future healthcare needs and the needs of your family in order to choose the high deductible plan or the Preferred Provider Plan (PPO). Additionally, you must decide whether your family will utilize a provider that is in or out of network. The consequences of choosing unwisely can be significant in terms of direct costs to the consumer. Additionally, this does not even count the decisions you must also make about your vision and dental plans as well. Another colleague has been using the high deductible plan for the last few years and is pretty good at running the numbers concerning the costs and benefits associated with the various plans (he has a doctorate in accounting). Today, he told me that for this year he probably chose the wrong plan and it will cost him more out of pocket than he originally had planned or predicted his family would spend. Obviously, if very intelligent individuals have trouble predicting and choosing their health plans accurately, the average American citizen doesn’t have a prayer.

My main question is that do we really have to make it so complicated and so hard to choose the correct plan! Choice and options are certainly wonderful opportunities, but sometimes too much information and too many alternatives or caveats create more confusion than benefits. I will say that many of the health plans provide websites and tools for individuals in an attempt to assist them in their choices and to help navigate our complex healthcare system, but really, can’t we devise a simpler more user-friendly mechanism? What do you think?

Massey School MBA 18th in BusinessWeek Rankings

2009-11-10T03:08:01Z

Belmont University announced today that its part-time MBA program has achieved a Top 30 first-tier national ranking in BusinessWeek’s 2009 report on “Top Part-Time MBA programs.” Belmont’s Massey School program ranked No. 18 in the U.S., between Richmond University (No. 17) and the University of Southern California (No. 19). Belmont also joined Emory University (No. 11) and Elon University (No. 6) as the top three ranked programs in the South. Nationally, other notable programs in the top 10 included the University of California-Los Angeles, University of California-Berkeley, and University of Michigan. BusinessWeek began ranking part-time MBA programs in 2007 in an effort to recognize the best MBA programs designed specifically for working professionals.

]]> According to College of Business Administration (COBA) dean J. Patrick Raines, “The student satisfaction rankings and teaching quality metrics indicate that our Massey professors are doing an outstanding job in the classroom. And to be in the company of this group of national peers is simply tremendous.” Massey School associate dean Joe Alexander adds, “Our students and alumni will be very pleased with this recognition. Furthermore, for our business community and employers who long ago embraced Mr. Massey’s vision of a flexible, high-quality part-time MBA program for Nashville, what a way to signify that dream becoming a reality.”

BusinessWeek uses a highly comprehensive methodology for its rankings calculations that includes measures of student satisfaction, academic quality, and post-graduation outcomes. The magazine surveyed 12,414 part-time MBA students at participating schools, including those who had recently graduated or were nearing graduation. To assess academic quality, consideration was given to average GMAT score, average student work experience, the percentage of teachers who are tenured, average class size in core business classes, the number of electives available, and the percentage of students who ultimately graduate. As for post-graduation outcomes, BusinessWeek determined the percentage of respondents from each school who reported their part-time MBA program was “completely” responsible for them achieving their career goals.

The BusinessWeek report singled out Belmont for highest marks in “quality of teaching” and “curriculum,” and the Nashville program ranked 7th in the U.S. in overall student satisfaction. The school was also rated highest for “career advancer” students, as opposed to “job changers” or “career switchers.”

“This recognition reinforces the quality of a Belmont education,” said Belmont Provost Dr. Marcia McDonald. “The Massey School is delivering on its commitment to students and fulfilling Belmont’s mission to provide an academically challenging education that will empower our students to engage and transform the world.”

BusinessWeek’s complete rankings of the “Best Part-Time MBA Programs” is available on-line (http://www.businessweek.com/bschools/rankings/), and includes expanded content, including the full rankings methodology, interactive tables, in-depth profiles, and a discussion forum.

How Big a Geek are You?

2009-10-23T13:33:27Z

In all its cheesy humor, Microsoft’s ServerQuest II is an Internet game that lets you test your inner geek. While anyone can play it, ServerQuest II was undoubtedly created for IT professionals. Users running Silverlight on their computer can download ServerQuest II and run it in their browser.

As a player, you can choose between IT professional s Matt or Alicia whose objectives are to manage the company’s network while providing solutions to a slew of technical problems. Users work through a series of games and puzzles that simulate real life IT problems along with some rather absurd tasks stereotypical of geek humor. Although ServerQuest II is a game, players can learn about and use some of Microsoft’s latest software and tools as well as pick up some useful troubleshooting techniques.

As previously stated, this game does provide a little humor as you earn geek points for providing correct solutions to the task at hand, which encapsulates one of Microsoft’s many technologies. The game includes 10 chapters along with 3 Circuit Snake rounds and a special Vista Upgrade game. So, if you’re an IT geek or aspire to become an IT professional, then this 8 bit graphic game with Mono sound is for you.

Free Samples can Work

2009-10-21T18:46:19Z

I want to applaud (and thank) Jimmy John’s Gourmet Sandwiches for today’s effort to expand their customer base and increase loyalty. A couple of the employees from the local shop came by our offices to offer a free sample of one of three of their “gourmet sandwiches.” Arriving just before noon, their sandwiches were ready to enjoy when hunger was at its height. Delicious. The friendly employees emphasized their delivery service, which is especially appreciated since leaving campus for lunch means losing this morning’s parking space. The mini-menus they left will be good reminders of their tasty sandwiches and the convenience of delivery just experienced.

Are We Willing to Help Our Fellow Americans?

2009-10-15T14:36:59Z

This month’s blog will focus on the healthcare reform issue, but perhaps, from a slightly different perspective. If we examine all the different proposals and opportunities to reform the current US Healthcare system, we would find very few that actually do away with the current system and proposes to build a completely new system. Nearly all individuals who have worked in the healthcare system in a professional capacity certainly have witnessed the perverse incentives, the lack of access to basic services for many individuals, the inadequate consistency in quality, and the tremendous drain on the US economy resulting from the huge costs associated with the healthcare delivery system.

]]> Many of these individuals might have some very good recommendations on how to build a better healthcare system for the US. Yet, as a nation, we are very reluctant to do so or attempt to propose such an endeavor. The reason for this is partly due to the fear that it would never be approved by any political body. The incentives for the majority of organizations and individuals to keep major parts of the system in place are too great. Also, too many individuals fear the loss of what they have or worry that they may have to pay more for their current coverage. However, the fact remains that many Americans do not have a sustainable healthcare plan and many obtain their care only via the emergency departments of local hospitals or by another emergency resource. These individuals certainly are not worried that they will lose what they do not have or even pay extra for something they can’t afford right now. However, for everyone’s best interest, it makes more sense to offer individuals a basic package of health services under a less expensive venue than the local emergency department. This would be far less expensive and hopefully give individuals earlier access to the healthcare system, before their conditions become more expensive to treat (an acute and dangerous situation) or become chronic illnesses.

So if we must keep the current system in place, can we still carve out routine care in the form of a basic healthcare plan for these individuals that need it but cannot afford it, while possibly saving money in the process? I think we can, if we decide to answer a fundamental question that goes beyond the idea is healthcare a right or a privilege. The real question should be is providing healthcare an obligation for Americans who have the means to help others that do not? From my Christian background and beliefs and the fact that I teach at a Christian-centered institution, the answer is very clear. Yes, if we truly believe in the “Golden Rule” and that we have an obligation to our fellow human-being to help them out as we would want them to help us out if we needed it, then we should, at least in some manner, be willing to be our brothers and sisters keepers regarding healthcare. Based on our own religious or moral beliefs that espouse a philosophy of doing good for others and having a responsibility to provide help as needed, then we should be willing to help our fellow Americans with their needed access to basic healthcare. Healthcare is a vital need for all Americans just like food, water, and clean air. However, the appropriate level of assistance could end up being substantially more that just a few dollars a month or a year.

A real change in our healthcare system might be accomplished if the appropriate modifications are made and, as Americans, we are willing to give our fair share to help improve the entire system to better society as a whole. However, this obligation becomes a two-way street. Other stakeholders within the system (e.g. insurance companies, pharmaceutical companies, healthcare facilities, medical suppliers, healthcare attorneys, and other individuals that do business within the healthcare system) must be willing to give up some of their profits and control of the system as well. Additionally, Americans that are helped by society must also be willing to accept responsibility for attempting to live healthier lives, be as productive as they can, and pay forward to others who may need help.

Can this be done by modifying the current healthcare system with one of the existing proposals in Congress?
I believe it can, if as Americans, we all come together and realize that we may have to apply a "Golden Rule" type of legislation that may affect all of us in one way or another. Particularly in a situation where a small increase in everyone’s out-of-pocket costs (or reduction in profits) will help to improve the whole system for all Americans for the future. This will not be an easy fix and many individuals that have affordable healthcare coverage may share a larger burden than they have in the past. So, does it make sense to follow this approach and support some level of basic healthcare for all Americans, even if it costs us somewhat more out of our own pockets than we are currently paying? If we don't do something now, I firmly believe it will cost us all a lot more later on. In the long run, I think so. If we don't do something now, while we still can, I firmly believe it will cost us all a lot more later on in the future.

Massey Named a Best Business School by Princeton Review

2009-10-06T15:38:33Z

We received official word yesterday that The Jack C. Massey Graduate School of Business has once again made Princeton Review's list of Best Business Schools. This honor is especially meaningful in that it is based in part on feedback from surveys of graduate business students across the U.S.

According to Robert Franek, Princeton Review Senior VP-Publishing, "We are pleased to recommend The Massey School to readers of our book and users of our site, www.PrincetonReview.com, as one of the best institutions they could attend to earn an MBA. We chose the 301 business schools in this book based on our opinion of their academic programs and offerings, as well as our review of institutional data we collect from the schools. We also strongly consider the candid opinions of students attending the schools who rate and report on their campus experiences at their schools on our survey for the book."

This is the fifth consecutive year that Massey has made Princeton Review's list, the latest 2010 edition of which hits newstands today. "It further demonstrates that we are in the company of the elite business programs in the U.S.," said Dean J. Patrick Raines.

The American Auto Industry Flow-Chart

2009-09-28T20:56:26Z

All the recent changes in the American Auto Industry can be confusing. This flow-chart makes it easy to see who did what. After seeing this, I'm giving props to Ford. [mint.com via Autoblog via Jalopink]

Are You Ready for Some Web 3.0?

2009-09-25T13:52:17Z

Industry experts predict the next iteration of the Web will likely take hold around the year 2015. From Web 1.0 (the “Static Web”) - where surfers browsed through static, hyperlinked Web pages with little to no interaction to Web 2.0 (the “Social Web”) - an interactive and more social experience for users who are consumed with electronically connecting to other users. Web 3.0, or the “Semantic Web,” is touted as the next generation of the Web where information will be stored and categorized in a way that will allow computers to understand the content and information similar to a human. Web 3.0 will make wide use of artificial intelligence to “teach” the computer the meaning of data, which will in turn, organize the data into an intelligent and useable format. This is expected to make search retrieval more efficient by giving users just the information they want. While we’re still a few years away from the transition from Web 2.0 to Web 3.0, some companies are leading the way in this transformation. For a glimpse into Web 3.0, Thought Pick provides a nice review of some of the various Semantic Web applications that are already in use.

100 Best Global Brands

2009-09-23T15:17:34Z

BusinessWeek’s list of the 100 Best Global Brands has been released. Coca-Cola takes the number one spot again, with an estimated $68,734 million brand value. Fast Company magazine recently published a story about David Butler, Coke’s Vice President of Global Design, which you can read here. According to Butler, Coke is “leveraging design to drive innovation and to win at the point of sale.”

Check out who else made the Top 100 list and why.

Remember the Good Guys

2009-09-22T03:06:52Z

Scarlett Leadership Institute founder Joe Scarlett reminds us in yesterday's The Tennessean editorial to "Remember the Good Guys" who have built our U.S. industrial powerhouse. As Joe points out, in light of today's well-publicized incidents of corporate greed and abuse of power (still, a very small proportion of U.S. businesses), it's easy to forget about the thousands and thousands of business leaders who have been ethical and successful and continue to do so as we still enjoy the world's most successful economic system. Joe's entire article can be found by clicking on the following: 'Good Guys' Built U.S. Powerhouse.

The Healthcare Reform Plan - Much To Do About Something (as opposed to Nothing)

2009-09-14T18:30:00Z

Recently a colleague sent me a link to a Slideshare presentation entitled “Healthcare Napkins for All”. The presentation created by Dan Roam and Anthony Jones depicts a simplistic and yet fairly accurate description of our healthcare reform efforts to date. The napkin presentation provides an amusing, yet straight-forward illustration of how the American taxpayer resides squarely in the middle, squeezed by the healthcare insurance companies and the healthcare provider system, while politicians continue to develop alternative plans to “improve” the failing healthcare system at the taxpayers’ expense.

]]> A major point that the presentation makes is that we are not reforming healthcare, but only the insurance side of the equation and this approach will have serious opposition considering the deep pockets and lobbying capacity of the insurance companies. This type of approach is especially troubling if you listened to President Obama’s recent address to Congress and the Nation where he indicated that not one red cent would be added to the cost of the healthcare reform plan. If that is true (which is very doubtful), then where will the money come from other than from the direct out-of-pocket costs levied on the American consumer? It certainly won’t come from the huge savings from Medicare and Medicaid savings (reductions?). I also doubt that the funding will come from the Insurance Exchange or Government option which is supposed to cover the uninsured Americans that can’t afford or obtain private or employer insurance and who may be our most vulnerable population in terms of illness. Most insurance companies do not want to cover individuals that have poor health and have little or no income to pay for care without some steep outside incentives or subsidies. That’s just not good business and if it was, they would have provided it long ago.

Let’s face the reality that to provide better care for all Americans, both the ones now insured and the ones not currently insured, you must consider the huge costs to the system. You can’t simply wave a magic wand and create fictitious savings. Even if we could save some reasonable amount of money from over utilization or bureaucratic administrative wastes (and this is also very doubtful considering our history concerning vast administrative costs of Medicare, Medicaid, and other government run programs), it would not begin to cover the major increase of additional care (primary & preventive) that would be needed by so many individuals. If the savings come from the perceived overtreatment in the form of increased rationing of care currently provided under private insurance plans, then this approach will also meet strong opposition. To make an expanded program work without extensive rationing, it will most assuredly need to be subsidized by someone - most likely the American taxpayer.

Belmont COBA Faculty in the News

2009-09-02T17:01:59Z

Within the past week, two Belmont College of Business Administration faculty members – Dr. Jeff Cornwall, Director for Belmont’s Center for Entrepreneurship, and Dr. Charles Wainright, Associate Professor of Management, Healthcare Administration, have been in the press. Read Life Experiences Form Entrepreneurs and Hospital Worker Retention: It's About the Environment.

We are proud of the accomplishments of our faculty and the continued contributions they make to their respective fields. You can view recent faculty recognitions here.

Navigating the Social Networking Phenomenon

2009-08-20T19:09:11Z

Social networking sites are becoming increasingly popular among Internet users regardless of age. Sites, such as LinkedIn, Facebook/MySpace, and Twitter are some of the most popular web-based tools that allow individuals to create online communities. Despite their similarities, these social networking sites offer unique benefits to their users. The following represents a brief synopsis on each of the four most popular networking sites.

LinkedIn is a professional, business-oriented site that allows users to build an online community with other business professionals. LinkedIn users create a profile that is similar to an online resume in that it summarizes the users’ professional experience and educational background. Soon after individuals join LinkedIn, users can create “connections” with clients, partners, and colleagues in which they can view their “connections’” profile and even make “recommendations” on their behalf.

Facebook and MySpace are online communities that are more “social” than “professional,” in that users join to primarily connect with classmates and/or reconnect with friends and family. One’s profile is of a more personal nature including basic information like hometown; political and religious views; and favorite movies, books, and shows. Facebook members can access online games tailored to the Facebook community that allow “friends” to interact in an online gaming environment. MySpace, a less secure version of Facebook, is geared toward a younger audience and provides users more flexibility in creating their own page. More common to MySpace are the web-based tools for musicians to generate/increase their fan base, to promote their upcoming performances, and to share their music tracks with other MySpace users.

Twitter, as far as social networking sites go, is more of a communication platform that helps companies connect to their customers and/or allows individuals to connect to other persons with similar interests. Companies can quickly and easily share their in-store promotions and latest news, gather business intelligence via customer feedback, and develop/strengthen customer relationships through the exchange of “tweets.” Twitter also acts as a search engine in that it provides the means to connect to people and content over the Internet based on the users’ search criteria. Rather than connecting with friends, family, and colleagues, Twitter allows users to reach beyond their circle of friends to exchange ideas in small chunks or “follow” other users in their quest to gather and share information.

The Internet is full of useful resources on how to get started with any of these social networking sites. The best online resource I have found to date was developed for Twitter called Twitter 101. With a little time and effort, I’m sure you will be able to exploit some of the opportunities found within these online communities.

Will Our Healthcare System Be Placed on Life Support?

2009-08-13T16:00:10Z

All kidding aside, our healthcare system is limping along with a very expensive price tag and yet we are still in a quandary about what to do! It is interesting (and a little bit scary) to watch the contentious debate over how and if we should change our healthcare system. It is my sincere belief that if you polled most Americans they would say that they believe healthcare is a right (at least a basic set of services) and not just a privilege. I also believe most Americans would recommend, at a minimum, inclusion of the following healthcare provisions in their healthcare system:

]]> 1) Reasonable access to routine & emergency care
2) High quality care provided
3) Affordable care or at least a reasonable out of pocket cost for their families
4) Lastly, a healthcare system that would avoid a total loss of all they have acquired (their homes, their savings, and their retirement accounts) if they or their family members have an unforeseen catastrophic event (very costly hospital stay or long term chronic illness or accident).

So the real trick to providing all of these services comes down to how do you create, package, deliver, and pay for such a healthcare system that ensures access, quality, and affordability for all Americans as well as safeguarding these individuals from a financially catastrophic healthcare event. In other words, what is the acceptable healthcare benefit plan that can cover all Americans at the best price or a least at a price that Americans (taxpayers) can afford (biggest and best bang for the buck)?

Normally, the politicians do a great job of espousing a Grand Vision for changing the healthcare system, (no loss of benefits, no pre-existing conditions clauses, no requirements to change physicians, and so on), but they are generally very vague on the actual details on how to achieve such a Grand Plan, especially when it comes to paying for these changes and who will bear the responsibilities of implementing the changes or earmarking the funds to fully pay for these changes. As it is with most strategies & plans whether it is in healthcare or any other industry, “the real work is in the details of the plan!”

Just A Few 'Small' Details that need to be Addressed
Some of the major issues or details that must be considered:
• Should we attempt to provide healthcare (and or healthcare insurance coverage) to 100% of all Americans (is it a right and therefore an obligation to provide to all citizens)?
• Should we examine (and perhaps model or adopt at least successful parts of) other healthcare systems (e.g. Netherlands, Australia, Sweden, Canada, etc.) to possibly realize some of the benefits and shortcomings of systems currently being tested?
• What should be included in a basic healthcare plan for all American (wellness care, preventive care, mental health, long-term care, routine care)?
• Should we continue to provide coverage through an employer-based healthcare system?
• Should we have a one payer system or multiple payer system?
• Should we create policies and regulations to further control insurance companies?
• How do we ensure quality of care for all and the elimination of medical errors or mistakes?
• Should we have a federal limit on medical malpractice claims and do we need to reform the healthcare legal system?
• How much should each individual pay out of pocket in order to control excessive overutilization?
• What is the best method to reimburse clinicians and healthcare facilities (managed care, capitation, fee-for-service, etc.)?
• Should the government (taxpayer) pay for individuals who cannot or will not pay for their own healthcare?
• Should health benefits remain tax deductible to both employers and individuals or should they be taxed?
• Should we community rate individuals or experience rate them when determining their premium rates?
• Should we pay for all medications or just selected ones (e.g. inpatient vs. outpatient, maintenance vs. acute vs. chronic, generic vs. brand name, over-the counter, vs. prescription, etc.)?
• Should we continue to adopt new healthcare technologies that are expensive and may have marginal benefits? How should medical technology acquisition be controlled?
• What is the most appropriate mix of copays, deductibles, co-insurance, premiums, medical savings accounts, and other payment rates should we implement to achieve maximum effectiveness and efficiency while avoiding overutilization and underutilization?
• Should we continue to ration healthcare by price and access or should it be rationed by another means, if at all?
• Should we force stronger competition among healthcare providers and insurers?
• What is the best way to pay for the changes and improvements to our healthcare system without further burdening many future generations?

In most of the recent debates regarding our healthcare system, few if any discussions are centered on evidence-based support of what has worked in other countries. While most Americans believe that our healthcare system is definitely not perfect and may need some form of serious repair, the questions and issues listed above must be thoroughly examined and constructively discussed (and evidence on appropriate solutions presented) before a major overhaul of our healthcare system is attempted. These are a few of the many issues that are explored in the healthcare management concentration within the MBA Program at Belmont University. Please leave a comment below or email me your thoughts.

Excessive or Just Compensation for Financial Gurus?

2009-08-11T18:08:39Z

Since investors have broadly accepted the theory that financial markets are efficient, that is investors are making optimal decisions based on all the information available, Wall Street has been anxious to hire financial engineers (“rocket scientists”) to manage equity portfolios. In the Sunday August 9, 2009 New York Times Book Review section, Paul Krugman states in his review of Justin Fox’s The Myth of the Rational Market that “the myth of the rational market -- a myth that is beautiful, comforting and above all lucrative--isn’t going away anytime soon.”

]]> While the nation’s largest banks continue to argue that to hire the most talented executives and analysts they have to provide billions in bonuses, studies show little correlation between the compensation of analysts and performance on Wall Street. Meanwhile, USA Today reports that Goldman Sachs, JP Morgan Chase and Morgan Stanley have set aside $35 billion in the first six months of this year for compensation, expenses and benefits. If Fox’s writing can help us understand the runaway compensation system on Wall Street, then it would, indeed, be a worthwhile read.