SAN FRANCISCO--(BUSINESS WIRE)--A report from independent technology research firm Constellation Research states that a new software category called Enterprise Healthcare Management (EHM) will help large companies strategically manage their healthcare investments.
The report authored by R. “Ray” Wang, titled “Insights into the Future of Cloud-Based EHM Solutions: How Enterprise Healthcare Management Improves the Health of Enterprises and Their Employees,” indicates that healthcare-related cost and complexity have cast a confluence of chaos on American businesses. For example, Constellation expects healthcare expenditures among U.S. organizations to increase as total healthcare spending grows from 17.1 percent to a projected 25.8 percent of U.S. gross domestic product by 2025. Further, Wang cites that the $620 billion spent annually on healthcare by U.S. employers1 is driving them to seek improved utilization of benefit programs and top line cost reductions.
"Enterprise Healthcare Management will help large companies confront the healthcare affordability crisis by providing insights into usage and highlighting areas for optimization,” said Wang, founder, principal analyst, and chairman for Constellation Research. “Organizations should evaluate the benefits of Enterprise Healthcare Management as the forces of healthcare technology and future of work trends continue to converge.”
The report indicates that Enterprise Healthcare Management goes beyond cost control to strategically address the health and welfare of employees. Constellation cites that healthcare costs and efficacy of health and wellness programs remain top of mind for CEOs, CFOs, and Chief People Officers. In fact, the report indicates that the affordability crisis is impacting organizational productivity, creativity and competitiveness.
“Constellation expects healthcare spending to skyrocket to more than 25 percent of the GDP by 2025, creating a healthcare crisis for American businesses,” said Giovanni Colella, M.D., co-founder and CEO of Castlight Health. “The Constellation report makes it clear that businesses are at a breaking point. They must embrace Enterprise Healthcare Management practices and technologies to reduce waste and improve employee health and productivity if they want to have an impact on their bottom line.”
The Constellation report points to suite-driven cloud technology solutions like the Castlight Enterprise Healthcare Cloud as the most promising foundation for successful Enterprise Healthcare Management. The report defines the five components in today’s cloud-based EHM as follows:
- Employer Driven Policy Framework to enable employers to easily design new benefits plans.
- Employee Centric Marketplace to provide relevant information to make better healthcare decisions and engage with benefits plans.
- Partner Network Ecosystem for Employees to connect employees to on-site clinics, pharmacies, tele-medicine, nurse call lines, and other programs.
- Insights and Analytical Engine to identify opportunities to improve quality of care and reduce the cost of care by using data and analytics.
- Data and Information Exchange to bring all pertinent and relevant data in the healthcare ecosystem including medical, dental, pharmacy, wellness and provider claims.
- For additional commentary on Castlight’s industry recognition, read how Castlight’s Enterprise Healthcare Cloud was honored by the leading conference for HR technology executives.
- To learn how companies use Castlight’s Enterprise Healthcare Cloud to support their healthcare initiatives, read our customer stories.
- For more information about Castlight’s Enterprise Healthcare Cloud, visit the Solutions section of our website.
- To learn more about Castlight Health, visit our blog and follow us on Twitter @CastlightHealth.
About Castlight Health
Castlight Health, Inc. (NYSE:CSLT) is a leader in Enterprise Healthcare Management. We believe great healthcare builds great business, and U.S. enterprises can gain control over the $620 billion spent annually on healthcare, transforming a crippling cost into a strategic business advantage. Recognized as a top 2014 software platform by the HR Technology Conference & Exposition, the Castlight Enterprise Healthcare Cloud enables employers to understand and manage their healthcare investments while helping employees make the best possible healthcare decisions. Castlight is a great place to work, honored with a Glassdoor Employees’ Choice award and recognized by Rock Health for Diversity in Leadership. For more information visit www.castlighthealth.com. Follow us on Twitter and LinkedIn and Like us on Facebook.
Copyright 2015 Castlight Health, Inc. Castlight Health is the registered trademark of Castlight Health, Inc. Other company and product names may be trademarks of the respective companies with which they are associated.
1 SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group