2. KEY TOPICS
• Cooperation Pays
• Visible Positive Payoffs
• Multi-regional Viewpoint
SYSTEMIC REALITY
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3. Health Cost—Cooperation Pays
• The framework that works
– Long-term focus (so tomorrow matters)
– Stuck with each other (so encounter again)
• How it works if there’s no framework
– If there’s no tomorrow, grab the $ and run
– If you’ll never see each other again, ditto
• Payoff process for mutual-benefit deals
– Negotiate positive multi-year agreements
– Negotiate with long-term partners incl labor
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4. Making Positive Payoffs Visible
• Look at multi-regional economic benefit
• Apply multi-region, multi-year modeling
• Bread-and-butter modeling focus…
– Cut cost growth: state health insurance
– Cut cost growth: employer health insurance
– Cut cost growth: employee health insurance
• BONUS…
– Increase labor force productivity (healthier)
– Cut unempl ins growth (more competitive)
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5. Why Multi-regional Viewpoint?
• Supply chains & labor pools, not all local
• Commuters take pay home, spend there
• Specialized gear, must ship to local plants
• Here’s how it works…
– Focus on own regional advantages (clusters)
– Sell widely, invest in region (schools, P&E)
– Use “regional profits” to fill local + non-local
supply chain needs (B2B demand)
– Labor’s net pay drives consumer demand
– Demands (invest + B2B + consumer) drive
more demand cycles & regions to supply the
initial suppliers (get multiplier effects & ROI)
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