Dear ASHHRA,

Over the last several weeks, I have heard at least three people use the term "servant leader." When Robert Greenleaf first coined this term he was placing people, someone other than himself, as his greater responsibility. Wikipedia states "A servant leader is someone who is servant first, who has responsibility to be in the world, and so he contributes to the well-being of people and community."1 This has been on my mind because Valentine’s Day is this month. This is the month where we celebrate our love for others. Typically this is our love for our spouse, children, parents, and even our brothers and sisters (believe it or not... I send them both a Valentine each year). What if this year, in addition to sending flowers and Valentine’s cards, we also celebrate love for others by volunteering in an organization where we can make a contribution?

What if this year, you also choose to celebrate your love for others by volunteering? Would you consider ASHHRA? You could join a team of amazing volunteers that are dedicated to sharing their love for others by being servant leaders in our human resource community. Debbie Ruebens, SPHR-CA, director, Human Resources, Shriners Hospitals for Children, Northern California, Sacramento, Calif., leads the Learning and Education Committee. Her team works all year to anticipate our needs and provide webinars that help us stay informed and ahead of potential problems. Nancy Dinon, vice president of HR, Orlando Health, Orlando, Fla., and her committee are responsible for the annual conference. This conference provides more than education; it provides an opportunity to network, which is essential to our success. Mike Paruta, associate vice president, Women and Infants Hospital, Providence, R.I., the chair of our Advocacy Committee, leads a committee that charters a course for us in Congress. They advocate throughout the year for change that will benefit all of our employees and organizations. As you read these articles throughout the year, you will learn about other ASHHRA committees and task forces that are also contributing to the well-being of people and community. Along with the board, all of these individuals are exemplifying servant leadership.

Although we are beyond the new year, will you consider making a new year’s resolution? Call it your Valentine’s Day Volunteering Resolution. The possibilities are endless. You can volunteer by participating in a walk/run. You can take a senior out to lunch or teach a young person to read. You can introduce someone to the joys of the outdoors and bird watching (I admit, this is one of my volunteer goals for this year.) There is no limit to the contribution that you can make to people and your community. As you are thinking about this, think about ASHHRA. Think about sharing your love of health care with others in our profession by serving on a committee. Complete the online Volunteer Interest Form to put your name on the list as a future volunteer for our organization. In my personal experience, serving others is one of the most rewarding activities you can engage in. I hope you will choose to volunteer and HAVE FUN doing it!

Leading People Through Change,

Irma L. Pye, SPHR
ASHHRA 2012 President
Senior Vice President & CHRO
Valley Baptist Health System
Harlingen, Texas

¹Servant leadership. (2012, February 2). In Wikipedia, The Free Encyclopedia. Retrieved 20:34, February 7, 2012, from http://en.wikipedia.org/wiki/Servant_leadership

Over the past few years, employers of all sizes and across all industries are facing mounting financial challenges: from the economic downturn to ever-increasing costs for providing group health care coverage for employees. In addition to these financial concerns, rules set forth by ERISA and the Sarbanes Oxley Act require companies to implement and maintain higher levels of controls over corporate spending and risk management. Extra vigilance is demanded in the area of health care spending.

Dependent eligibility audits can be an effective tool for cost savings, and can also help employers ensure compliance with federal and state mandates. On average, 4–8 percent of dependents enrolled in an employer’s health plan are not truly eligible for coverage under plan guidelines, which results in considerable wasted spending. In 2009, El Camino Hospital—located in Mountain View and Los Gatos, Calif.—elected to conduct an audit of all dependents enrolled in their health benefit plans in an effort to curtail this waste. Initial health plan data showed that 1,501 employees were covering 3,164 dependents under the Hospital’s medical, dental, and/or vision plans. Understanding the time commitment and resources such an audit would require, the hospital chose to partner with HMS for the audit.

The objective of the audit was to ensure that all enrolled dependents met the hospital’s health plan eligibility definitions by requiring employees to provide documentation to verify eligibility, such as marriage certificates, birth certificates, etc. Using a proven, four-phase approach, HMS completed a comprehensive dependent eligibility audit of the entire health plan population.

Over the course of the audit, 7.6 percent (or 242) ineligible dependents were identified, resulting in a cost savings of $1,430,704 for the first year. This meant a return on investment for El Camino Hospital of 3,077 percent. In other words, the hospital recouped its initial investment within just 11 days.

As part of their ongoing effort to monitor and control health care costs, El Camino Hospital engaged HMS to perform additional follow-up audits in 2010 and 2011. In mid-2010, 16.22 percent of audited dependents (30 dependents) were found to be ineligible, which led to $177,360 in cost-avoidance savings. The 2011 ongoing reviews found 21.98 percent of audited dependents (111 dependents) to be ineligible, resulting in a savings of $591,075 for the hospital.

At the time of this writing, El Camino Hospital is conducting a review of dependents added following the November 2011 open enrollment period, and expects additional savings at its conclusion.

Rich Flaherty is vice president of Sales and Marketing at HMS. He can be reached at
812.704.5747 or by email at rich.flaherty@hms.com.