Mr. Harris Rosen has created a landmark in healthcare benefits offerings at his Rosen Hotels RosenCare Medical Center. Since he broke away from his status quo healthcare plan in the early 90’s, he’s been featured in news articles, Ted Talks, and case studies nationwide. They have some of the lowest turnover in the hospitality industry, and have an NPS only slightly lower than Intercontinental Hotel Group (a company with 4x Rosen’s valuation).
At Health Rosetta Conference earlier this week, we had the privilege of touring the RosenCare Medical Center (“not a clinic- it’s so much more”) and seeing, first hand, the type of bold cost-containment plan design that we talk to our clients about.
To celebrate, we’re recapping five key things we learned on our tour. If you were there, add your own in the comments!
Mr. Rosen estimates that his program has saved $460 million in healthcare bloat since its inception in 1991. For context, The Rosen Shingle Creek Resort—where the conference was hosted—cost $360M to build, and is valued at over $1 Billion. The Tangelo Park Project, another philanthro-business concept, is showing 7:1 ROI, and is being adopted by Wyndham Hotels, as well as other Rosen contemporaries.
“A healthcare plan that people respond to in a positive way saves a tremendous amount of money.” -Harris Rosen
One thing the RosenCare team was very excited to show off was the flexibility they have to offer whatever kind of medical treatments their members truly need or ask for- even on an experimental basis. For example, RosenCare were early adopters of medical marijuana. As soon as they decided to try it, there were no hoops to jump through for coverage, and they say the clinical results are evident.
Services like Physical therapy, acupuncture, UL chiropractors, and even vitamins and supplements are traditionally hard to get covered under BUCAH plans. For Rosen employees it's no problem. They told us the vitamin and supplement budgets alone are $150,000+.
RosenCare also had COVID tests before any other major clinic in the state because they were able to source them directly, which put them at an advantage over other competitors.
Rosen Hotels pay employees on the clock while they are using the Care Center, including traveling. Most doctor visits take about 4 hours door-to-door, which is a reason why many people will just not see the doctor at all. Because many Rosen employees don’t have cars, Rosen Hotels provides vans at each location to shuttle to and from the Care Center. Excuse me, not vans- black Escalades.
RosenCare also knows that 20% of first-time prescriptions don’t get filled, so they were beta testers of an on-site automated teller machine so patients can fill prescriptions right at check-out. They say this has made a big impact on fulfillment.
“We do it simply because it’s the right thing to do.” -Harris Rosen
30% of Rosen Hotels employees are haitian, and another 30% mexican or latin american, where quality healthcare is not widely available or used. They found that 56% of pregnancies were high risk- moms who'd never had a mammogram, other screenings, or history of blood panels. Premies cost plans easily $1-$2M, so even if you can’t prevent the premie, if you can foster a slightly longer gestation period and bring that bill down to $200,000- you, the plan, the parent, and the baby all win.
In fact, the plan takes whole-body health very seriously. Lifestyle issues reduce employee productivity and create co-morbidities. It’s against the rules for any Rosen Hotels employee to smoke. Period. And the clinic has final approval over the menu at all staff dining rooms.
Member copays for any visit to RosenCare Medical Center is $5, with no deductible or other out-of-pocket expense. RosenCare owns all downstream referrals to providers, and they have direct contracts with or have evaluated each personally for quality. The ER copay is $75, and the max OOP is $750. There's even a payment plan available. Because it’s affordable, employees tend to get the surgeries or procedures they need rather than putting it off until it’s a significant problem
Weekly paycheck deductions starting at $16 for the lowest paid employees and go up by tier.
“People are natural problem solvers. I knew if I looked hard enough I’d find the person who cracked the code.” -Dave Chase
While staying at the hotel, we made it a point to ask the resort employees about their medical plan and other benefits to see if they're really as happy with it as Mr. Rosen claims. We can confirm that everyone was effusive in their praise. Edwin, a waiter in the breakfast restaurant, told us about Rosen Hotels' college tuition program, that will pay for him to go to school after 3 years of working there. In his words: “My plan is to stay here for a very very long time.”
The tech infrastructure needed to manage these unbundled plans doesn’t exist. This has created a fragmented consumer experience and delivers a fraction of potential value.