Inflation just hit a 40-year high. Even with record increases in wages, employees are falling further behind. The focus is on soaring costs for consumer goods and energy, but don’t forget about healthcare.
Healthcare’s average inflation has been almost 4.7% annually since 1935. McKinsey estimates that inflation in healthcare would dramatically affect the industry’s profits; e.g., “a three percentage point rise… would mean about a 12 to 24 percent drop in profit pools in 2022 for the overall healthcare industry.” The history of the industry would suggest that significant price increases will be coming soon. Some expect those increases to exceed 7%, and that is before factoring in the amount of deferred care that has happened because of the pandemic.
The time to intervene and avoid these trends is now. Many employers focus on affordability and flexibility for members in their health plan, especially in light of “the great resignation.” Regenexx is a solution that helps create affordability for members seeking surgery. While common orthopedic surgeries like total knee replacement or spinal fusion cost $30k – $100k with limited evidence on efficacy, the Regenexx procedures cost less than $6500 on average in 2021.