NEW YORK (PRWEB) April 02, 2020
As the U.S. enters an economic downturn driven by a truly unprecedented pandemic event, companies are being directly and indirectly affected by the economic crisis. Industries ranging from hospitality and restaurants to non-grocery retail and manufacturing are experiencing a sharp slowdown in revenue.
As revenue declines due to demand reduction and supply shortages, companies will need innovative ways to increase profits. Quantify Health’s (https://www.quantifyhealth.co) COO Raj Sandhu says, “The easiest way to make a dollar in profit is to lower costs by a dollar, since every dollar saved goes straight to the bottom line. But of course, a lot of traditional cost cutting measures like layoffs and outsourcing can be harmful for the company. They can affect employee morale, product quality, or customer experience.”
Healthcare in particular is a major expense. On average, it represents the second-highest operating expense category after employee wages, though it is the fastest growing opex category. A recent analysis from Willis Towers Watson shows that U.S. employers can expect to see cost increases of 1-7% depending on the scale of the pandemic, on top of expected annual increases of 5%. Lowering healthcare costs is critical for companies – the key is to do so in a model that doesn’t require capex or other upfront costs, while also not affecting the quality of employee healthcare.
Quantify Health does just that – lowering healthcare and workers’ compensation costs for employers by at least $150 per employee per year, without any upfront or fixed costs and without negatively affecting healthcare or benefits quality. “Especially for companies with thousands or tens of thousands of employees, this can save millions of dollars a year – which can be a critical lever to sustain businesses during this economic crisis,” says Raj. Quantify Health is offering a free trial to companies with over 5,000 employees, delivering the first $10,000 in savings for free without signing a contract.
This crisis will fundamentally affect many industries – and a sizable number might not survive. The key for companies will be to lower costs categories like healthcare in an impactful and sustainable way in order to weather the crisis and emerge stronger on the other side.