Designing benefits that are good for employees and for business

Hospital employers need to evaluate the true cost of their medical benefits program by comparing HMO benefits and premiums versus a self-funded plan's benefits and costs. Hospitals need to evaluate the cost of providing services at their own facility, then compare the capitation income derived from the HMO for providing these same services at their own facilities against the paid claims dollars that are returned to them when plan participants receive services at their own facilities.