Employers are becoming increasingly concerned about the rising cost of private healthcare and looking for other areas where savings can be made, according to Mellon Financial's human resources and investor solutions group.
The results of the firm's online survey carried out in January show that 70 per cent of the 300 employers which completed the survey were worried about increasing healthcare costs.
Employers highlighted areas such as sickness and management leave as ones where they could cut costs to counteract the rise in healthcare expenses. Mellon HR & IS managing director Adrian Norris believes better management in these areas could bring immediate cost recovery but careful planning would help to ensure a more cost-efficient business in the long run.
Norris acknowledges that healthcare costs look set to continue rising, saying: “Imp-rovements in availability and standards of service in the NHS on one hand and the lack of patients and demand for private hospitals on the other ought to be driving the costs of healthcare packages down but we have yet to see any sign of this.”