HOSPITAL USES MARKET FORCE TO SPUR COVERAGE

Vendors that offer insurance to workers get head start for contracts

Baptist Health South Florida, the biggest employer in greater Miami, is flexing its economic muscles to make a statement about the importance of employer-based health care coverage. In November, the health system, which employs 12,000 people, announced it will give preference to vendors that provide health insurance to their employees starting in this month.

"We're using market forces to promote social responsibility," says Baptist CEO Brian Keeley. "It's an embarrassment that a country as wealthy as ours doesn't offer health insurance. So, all things being equal, if there's a choice between two vendors, we're going to choose the one that offers insurance to its employees."

Baptist's purchasing philosophy states that the health system is biased toward "organizations that operate in a socially responsible manner including providing reasonable health insurance options for their employees." Baptist works with approximately 10,000 vendors.

Robert DerHagopian, M.D., a breast cancer surgeon at Baptist, originally promoted the idea after being inspired by his home state of Massachusetts' plan to provide universal health coverage. Since Florida's political environment won't support a state-led initiative, it was up to employers to pick up the slack, Keeley says. "We're doing it to inspire others. If employers band together, we won't need a state mandate or fiat," he says.

Proponents call it a symbolic statement that nonetheless may have a real impact on the local economy in South Florida, which is dominated by small businesses. As many as three of 10 South Florida residents are uninsured.

"Health insurance is a huge concern for small businesses. Costs are increasing and the choices are few," says Barry Johnson, president of the greater Miami Chamber of Commerce. Nevertheless, Baptist's policy may be an incentive for some employers. "It's a very creative idea in that it can encourage more businesses to provide coverage," Johnson says.

~~~~~~~~

By Dagmara Scalise