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About Our Clients Eau Claire-based Benefit Plan Administrators (BPA) Purchases Clients of Conservent Benefit Plan Administrators   Eau Claire/Germantown… Benefit Plan Administrators of Eau Claire has announced the purchase of the clients of Conservent, a Germantown-based third party health plan administrator (TPA) of self-insured employee health plans, effective September 1, 2008.  The purchase price and number of lives included in this transaction were not disclosed. Conservent’s President, Tom Witter said, “Our board of directors recently decided we should re-focus our attention on Conservent’s sister company, Virtual Benefits Administrators (VBA), a profitable, high technology benefits administration and application company, with a client list which includes United Health Care, WPS, American Dental Professional Services, Suby, Von Haden & Associates, and Marine Benefits, AS, an international maritime insurer.” Witter, and a group of local investors, purchased Keylink Solutions, Inc. in 2005 and changed the name of the Third Party Administrator (TPA) to Conservent.  Conservent’s Vice President of Sales, Bob Brower, is also one of the new investors in this transaction. Marc Paulson, BPA’s president said, “This is a natural fit for us.  Conservent and VBA have an excellent reputation and a high level of broker/agent/customer involvement in health plan designs as we do.  The size of their TPA clients fits well with ours so we can apply the ‘economies of scale’ to enhancing our offerings even more.  We look forward to sharing our high level of service with the new (to us) Conservent clients.” For more information about the two companies go to: www.conservent.net, www.bpaco.com or www.vbasoftware.net. Wisconsin Humane Society Agrees to Assume Assets of State’s Largest Puppy Breeder   Milwaukee...In an unprecedented move locally and nationally, officials of the Wisconsin Humane Society (WHS) announced today that they have reached an agreement to buy the assets of Puppy Haven Kennel in Green Lake County, located about 20 miles northwest of Waupun. The owner, Wallace Havens, who runs one of the largest dog breeding facilities in the nation, has agreed to sell his dog breeding business assets to the Wisconsin Humane Society, who will cease operations at the Green Lake facility and find homes for more than 1,100 dogs who have been residing there.   Margaret Stratton, president of the board of the Wisconsin Humane Society said, “Assuming the assets of this facility will allow us to provide wonderful homes for more than a thousand dogs.  These dogs will soon enjoy the love and companionship of people who will treat them as members of their families.  To our knowledge, this groundbreaking action is unique in the humane movement. This is consistent with the Wisconsin Humane Society’s mission to build a community where people value animals and treat them with respect and kindness.  We are always working to educate people interested in obtaining a dog that they must consider the physical, social and emotional needs of the dog and find out as much as they can about the dog’s background.”  Havens estimates that he sells about 3,000 dogs per year.  All of the dogs that the Wisconsin Humane Society obtains from Puppy Haven will be spayed or neutered, thus ending the production cycle that has kept them housed at Puppy Haven their entire lives.  WHS veterinarians are currently evaluating many of the dogs and are readying them for adoption.  “Havens is proud of the fact that the dogs from his facility will be going to the Wisconsin Humane Society.  He is retiring and not interested in pursuing a future breeding business.  For that reason, Havens was willing to discount the sale of the kennel assets,” said Tony Enea, Wisconsin Humane Society board officer.  According to Havens, “At this time in my life, selling the kennel assets to the Wisconsin Humane Society is the best choice for me and my family because the dogs that I bred will be in the best possible hands.”           Victoria Wellens, executive director of the Wisconsin Humane Society, reported that the transfer of dogs will occur over several months so each dog can be provided with the best possible care while WHS continues to serve animals from the community.  To date, about 300 dogs from Puppy Haven Kennel have been transferred to WHS to find homes.  According to Wellens, a variety of unique resources will be required to place all of the dogs since many of them will need time to adjust and become accustomed to living closely with people.  “Our employees and 900 volunteers are well prepared for this challenge to help provide a wonderful future for the dogs,” Wellens said. Wellens also stated that PetSmart Charitiesâ has provided a generous gift of equipment to care for the animals, including leashes, collars, toys, food bowls and grooming supplies.  There are many needs that still remain, which will be posted on the online WHS Wishlist. The Wisconsin Humane Society has a 130-year history of providing leadership in the humane animal welfare field, and hopes that this action will be a catalyst for people to come together to enact stronger laws and regulations to end exploitation of breeding dogs. For more information, visit our website: www.wihumane.org; or call (414) 431-6104. Local Health Care Executive Joins Cathedral Consulting Group Milwaukee…David K. Hoover, a prominent area health care executive and former practicing attorney, has joined the Milwaukee office of Cathedral Consulting Group, LLC as a managing director.  In addition to a new headquarters in Milwaukee at 1661 North Water Street, which opened June 1st, the business consulting firm has an office in New York City with consultants in New Jersey and North Carolina. According to Hoover, the firm’s consultants provide management counsel to owners of privately held companies and charitable organizations of all sizes in all industries through business reviews, board services, financial analysis, strategic and succession planning.  The firm was founded in Wisconsin by Peter Giersch, also a managing director, with extensive background in the nonprofit, religious and academic sectors. “What attracted me to Cathedral Consulting was the varied backgrounds of the principals and consultants which is reflected in the diversity of our clients,” said Hoover. Prior to joining Cathedral Consulting, Hoover held leadership positions at the Heart Hospital of Milwaukee; the Orthopaedic Hospital of Wisconsin, and Wheaton Franciscan HealthCare, all located in Glendale, and also practiced business law at Michael Best & Friedrich, LLP, in Milwaukee. For more information the Web site is: www.cathedralconsultinggroup.com. SURVEY: EMPLOYERS HAVE HIGH CONFIDENCE THEY CAN CONTROL HEALTH CARE COSTS WITH PROPER TOOLS – Nearly 75 percent have or want to have a wellness program with a risk assessment; fewer than 25 percent want taxpayer-funded universal health care – Waukesha, WI… Diversified Insurance Services of Waukesha, part of United Benefit Advisers, LLC (UBA), one of the nation’s leading employee benefits advisory organizations, today announced key findings from its 2008 UBA Employer Opinion Survey, which delineates employers’ specific health care strategies; health benefits, philosophy and opinion; health plan management and Consumer Driven Health Care. The release of the 2008 UBA Employer Opinion Survey contains representative responses from employers by both region and employer size. Of the 1,664 employers polled nationwide, 72.5% (77.4% local) have or want to have a wellness program that utilizes a health risk assessment; and 59.2% (64.5% local) have or desire to implement a chronic disease management program. The survey also found that employers with 200 or more employees were 54% more likely to describe themselves as “leading edge” or “fairly quick” to adopt wellness programs. Firms with more than 1,000 employees produced results that indicated they were two-and-a-half times as likely to describe themselves as “leading edge” or “fairly quick” concerning disease management program adoption.   “The tide has clearly turned in that the majority of employers believe in the long-term value and positive impact that comprehensive wellness and disease management programs provide,” said William Stafford, vice president, member services for UBA. “Keeping the healthy employees healthy while stabilizing and/or improving the health of employees with chronic conditions will dramatically improve everyone’s health and quality of life.” Other clear trends emerged related to employers’ perspective on what the government’s role should be in improving the health care landscape. Just 26% of employers nationwide (12.9% local) want the government to develop a taxpayer-funded universal health care system. Without regard to employee size or geographic region, more than 75% of employers surveyed felt the government should require hospitals and doctors to: Publicly disclose pricing (90.3% local) Require insurers to publicly disclose actual discounted prices paid to providers (83.9% local) Mandate health care provider quality reporting (80.6% local)  “This survey illustrates that employers have a high level of confidence in their ability to control health care costs and that their employees can make informed choices if given the additional tools necessary to do so,” Jim McCormack, Diversified’s chairman & CEO said. “In the current environment, the absence of readily available price and quality data coupled with an expectation of both employers and employees to make sound health care decisions is like asking someone to navigate turbulent waters while blindfolded and without the ability to steer.” Notable results in other categories include: 60% (77.4% local) of employers felt health plans/insurers and the government are ultimately responsible for controlling the cost of health care Just 1% (0% local) felt the government should have a say in deciding which doctor or hospital patients should use or how to manage chronic conditions 8.4% (12.9% local) of employers felt doctors and hospitals should be responsible for controlling costs Asked to project ahead five years: 86.8% (96.7% local) of employers surveyed believed more health care costs will shift to their employees — down 5% from the 2006 survey 51.0% (61.3% local) felt that Consumer Driven Health Plans would be the dominant plan type — down from 52.9% in 2006 47.4% (64.5% local) feel both they and their employees will have the price and quality data necessary to make good health care spending decisions More than 98% (100% local) were confident they would be providing health care benefits to their employees one year from now “Overall, the survey results show that employers take their role as the primary source for health care coverage in America quite seriously,” said McCormack. “Employers have made it quite clear that they cannot take sole responsibility for health care costs; they need to partner with employees, physicians, hospitals and the government to find a solution to the health care crisis we are all experiencing.” ABOUT THE 2008 UBA EMPLOYER OPINION SURVEY The 2008 UBA Employer Opinion Survey and the 2007 UBA Employer Survey (which addressed personal health management/wellness, employer communications and scope of benefits) serve as companion pieces to the 2007 UBA Health Plan Survey. Released this past August, the 2007 UBA Health Plan Survey is the largest health plan benchmarking survey in the nation. Results from the 2008 UBA Health Plan Survey will be released in August 2008. ABOUT UNITED BENEFIT ADVISORS United Benefit Advisors, one of the nation’s largest employee benefit advisory organizations, has more than 1,900 experienced benefits professionals in more than 165 offices throughout the U.S. and Canada. An alliance of 140 of the nation’s premier independent benefit advisory firms, UBA members are better positioned to help employers and their employees respond more efficiently and effectively to the challenges of an ever-changing employee benefit marketplace. Visit UBA online at www.benefits.com to locate your local UBA Member Firm. ABOUT DIVERSIFIED Diversified Insurance Services is headquartered in Waukesha with an office in Oshkosh.  Diversified is one of Wisconsin’s leading, full-service brokers, serving all of the employee benefits, risk management and business insurance needs of businesses.  Web site: www.div-ins.com.   Diversified Insurance Services Leads Effort to “Clean Up” Sherman Park Milwaukee…For a second year in a row, Diversified Insurance Services of Waukesha will lead the Spring Clean Up effort at Sherman Park, 3000 North Sherman Boulevard, on Saturday, May 31, from 8:00am to noon. According to Jim McCormack, Diversified’s chairman and CEO, “Diversified’s first effort, last year, to clean up the park was a way to ‘give back’ to the community for our company’s 25 years of success.  This was an easy call for us to do it again this year, based on the dramatic change to the park’s appearance after the joint efforts of 120 volunteers, including Diversified’s employees, family, friends and clients.” This year over 125 volunteers and associates from Diversified, the Sherman Park Community Association, Milwaukee Tennis and Education Foundation, the Boys and Girls Club located in the park, Milwaukee Fire Department, Milwaukee County Parks, and David J. Frank Landscape Contracting will be on hand to spearhead restoration and renewal projects.  Some of these projects include staining about 40 picnic tables, cleaning up the park and surrounding areas, placing wood chips around the park’s trees and sand under the swings, spreading fibar on the playground, power washing the tennis and basketball courts, putting up a tent for the park’s summer tennis program, replacing tennis and basketball nets, installing new windscreens on the courts and placing flowers in the park’s circle drive and in the planters.  Diversified will underwrite the cost of most of the materials and will be providing food and refreshments for the volunteers. As part of its corporate social responsibility program, Diversified also will be underwriting part of the cost of a full-time on-site activities director. County Executive Scott Walker, County Parks Director Sue Black, and County Supervisor Michael Mayo, Sr., and other elected officials from the area are invited to speak at the 8:00am kickoff. Sue Black applauds McCormack and Diversified for organizing the manpower and providing the funds to help clean up Sherman Park. “We hope other area corporations will explore such partnerships with us to help make our parks the best they can be,” said Black. About Diversified Diversified Insurance Services is headquartered in Waukesha with an office in Oshkosh.  Diversified is one of Wisconsin’s leading, full-service brokers, serving all of the employee benefits, risk management and business insurance needs of businesses.  Web site: www.div-ins.com.    Spots produced for Diversified Insurance in conjunction with the production staff of Channel 12 Spot 1: Casualty Spot 2: Employee Gaudynski to Represent Sleep Apnea Solutions Alan L. Gaudynski & Associates, Inc., a Pewaukee business communication and public relations firm is now representing Sleep Apnea Solutions, Inc., Waukesha, and will be providing advertising, marketing, media and public relations services.  Sleep Apnea Solutions, Inc., is locally and family owned and provides sleep disorders diagnostic and clinical services in the privacy of a person’s home at a fraction of the cost of other area sleep clinics.  www.DiagnosisBeginsAtHome.com Local Specialty CPA Firm Changes Name and Announces Staff Promotions Stephen C. VanderBloemen, CPA, has announced the name change of his Certified Public Accounting firm from VanderBloemen Rodrigues to The VanderBloemen Group, LLC.               According to VanderBloemen, practice leader and managing member of the firm, “The new brand name better reflects the direction of our firm emphasizing the development of our future leadership from the next generation to continue servicing the construction industry that I have been a part of since 1970.”               He also announced that Jon Hilgendorf, CPA, and John VanderBloemen, CPA were admitted as partners/members of the firm.  The partners of the The VanderBloemen Group are also pleased to announce that Eric Carlson, CPA has rejoined the VanderBloemen Group as a senior manager after spending two years at a large regional firm.  Carlson previously spent ten years with VanderBloemen.               Since its inception in 1989, the twelve person firm remains headquartered in Waukesha County.  The VanderBloemen Group specializes in financial and tax compliance, litigation support/contract compliance, business advisory, system evaluation/selection and conversion, continuity/estate planning and consulting services primarily to the construction industry.               For more information visit www.constcpa.com. Health Payment Systems (HPS) Adds Wheaton Franciscan Healthcare and Others To Network Officials of Milwaukee-based Health Payment Systems, (HPS), a unique benefits company which accelerates payments to providers, while reducing health care costs for self-insured employers and their employees, have announced the signing of a contract with Wheaton Franciscan Healthcare, (WFH), in Milwaukee, to provide health services to HPS clients.  Wheaton Franciscan Healthcare is a Catholic, not for-profit organization with more than 100 health and shelter organizations in Wisconsin, Iowa, Colorado, and Illinois.  In Southeast Wisconsin, WFH has over 12,000 associates, making it the second largest private employer in the area.  With 260 primary care physicians in 40 locations, hospitals include St. Joseph and St. Francis in Milwaukee, Elmbrook Memorial in Brookfield, The Wisconsin Heart Hospital in Wauwatosa,  All Saints in Racine, and a soon to open facility in Franklin.                        In addition to the Wheaton Franciscan contract, HPS recently signed contracts with University Health Care, Inc., and Meriter Hospital, Inc., of Madison; Agnesian Health Care, Inc., of Fond du Lac; and Holy Family Memorial, Inc., of Manitowoc. “We congratulate Wheaton Franciscan management for their forward thinking and dedication to quality care while reducing their administration cost for our patients in working with us,” said Bruce Lefco, chairman and CEO of HPS.               “With the increase cost shifting to employees, working with HPS is an innovative way of helping our patients with a simplified and understandable bill, while helping keep our administrative costs down through HPS’ 20-day, or less, rapid payment system,” said Coreen Dicus-Johnson, Wheaton’s senior vice president of payer contracting and revenue operations.               After signing this contract and other recent contracts, we are well on our way of targeting 65% of providers in Southeastern Wisconsin,” Lefco said.               HPS began operations in 2006.  The company caters to employer groups and self-insured health plans of 50 or more employees.  Its signature service is to pay the employer and employee portions of the billed health care service in a single payment within 20 days, in exchange for deep and substantial discounts to HPS clients.               Due to the unique service provided by HPS, Lefco said he and his colleagues are contacted daily by benefits brokers, company CEO’s and financial officers, administrators and providers locally and nationally.  HPS currently has four patents pending for its business methods and technology.               For more information about HPS: 414-271-5700 or on the Web: www.hps.md. Diversified Insurance is Positively Milwaukee Throughout Diversified's 25-year history, our staff and leaders have participated in many activities which "give back" to the community which has been so generous to our business success.  The culmination of our corporate social responsibility activities took place on June 9th, when we celebrated our 25th anniversary by organizing over 100 volunteers from Diversified, the neighborhood, clients and Milwaukee County Parks’ employees, to renew, restore and reclaim Sherman Park in Milwaukee's inner city. The call for help was answered again when our chairman and CEO Jim McCormack and Atty. John McNally responded to a call for action in a recent news story on Ch 4.  It seems St. Catherine's grade school in Milwaukee's inner city received donated equipment from a local YMCA to upgrade its basketball program but did not have the funds to complete the installation.  Jim and John stepped in with the funds to complete this project and were recognized by Carole Meekins and Ch 4's Positively Milwaukee for this kind deed. We thought you might want to see this report. Please click on the link below: http://www.todaystmj4.com/features/positivelymilwaukee/13775262.html?video=YHI&t=a Pewaukee PR firm adds several new clients (Pewaukee) - Alan L. Gaudynski & Associates, Inc., has announced several new clients.  The firm will be providing marketing, business communications and public relations services to: Health Payment Systems, an innovative Milwaukee-based, national rapid provider payment service, in exchange for deep discounts for its self-insured employers; cardiologist Bruce Wilson, MD; HeartMatters. MD, LLC, an international performance enhancement company; www.HeartMatters.MD, all of Mequon; and Interplan Health Group, (IHG), a national preferred provider organization (PPO), headquartered in Farmington, CT. Alan L. Gaudynski & Associates, Inc., is a full service business communications firm with a seventeen year history. Ray Grundman Elected President of the Board of AAAHC (Milwaukee) - Well-known, local healthcare executive and consultant Raymond E. Grundman, was recently elected president of the board of directors of the national Accreditation Association of Ambulatory Health Care (AAAHC), headquartered in Skokie, IL.  The association accredits over 3,000 health care organizations, including surgery centers, group medical practices, college health centers and many non-bedded U. S. Air Force and U. S. Coast Guard facilities.  In addition to his election to this leadership post, Grundman serves as a volunteer accreditation surveyor and is active on the association’s national board of directors.              Recently, Grundman was tapped to be the medical director of the Norris Health Center of the University of Wisconsin-Milwaukee.  In that new role, he will direct the medical and ancillary health services of the college student health services for the urban university’s 29,000 students. Before joining UW-M, he was the CEO of a large multi-group joint venture day surgery, imaging and multi-tenant medical office facility in suburban Milwaukee.  He has held similar positions at the Surgicenter of Greater Milwaukee in Greenfield, and the former Family Health Plan.  Through his consulting services, he has developed and managed numerous ambulatory surgery centers throughout the United States and is a nationally recognized authority in this field. Grundman is a board certified Family Nurse Practitioner and board certified Surgery Center Administrator, having  received   Master of Science in Nursing, and a Master of Public Administration degrees from the University of Wisconsin-Oshkosh. For more information: rgrundman@sbcglobal.net or (414) 791-2601.   Diversified Insurance Sponsors Briefing on The Milwaukee 7 Initiative Officials of Diversified Insurance Services, Inc. of Waukesha announced the sponsorship of “A Briefing on the Milwaukee 7 Initiative,” for all area businesses and governmental bodies.  Metropolitan Milwaukee Association Commerce President Tim Sheeby will be the main speaker at the breakfast meeting on Tuesday, October 23, 7:30 to 9:00 am, at the Waukesha County Technical College, RTA Education Center, 800 Main Street, Pewaukee.              Jim McCormack, chairman and CEO of Diversified Insurance Services said, “It is in the best interest of all of us in business to unite around the regional agenda to grow, expand and attract global businesses and talent to this area.  It is important to understand and embrace the Milwaukee 7 Initiative agenda.” “The leadership of the Milwaukee 7 Initiative has a well-thought out economic development plan.  For all of us to grow, we all need to buy into it and understand it.  That is why Diversified Insurance is pleased to sponsor this briefing,” said Diversified Partner, Dick Tillmar. The counties included in The Milwaukee 7 Initiative include: Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington, and Waukesha. Although this briefing is free to the public, seating is limited and reservations are suggested.  A continental breakfast will be served. RSVP by October 12 to Donna Finch at (262) 574-0440 or dfinch@div-ins.com.   United Benefit Advisors (UBA) and local member Diversified Insurance Services, Inc., of Waukesha announce results of the nation’s largest health plan benchmark study for 2007 United Benefit Advisors (UBA), (http://benefits.com), an alliance of 142 of the nation's premier independent benefit advisory firms, today released the results of its third annual employer-sponsored health plan benchmark survey. Diversified Insurance Services, Inc., Waukesha, is the UBA affiliate in southeastern Wisconsin (www.div-ins.com). With responses from 16,485 health plans sponsored by 11,723 employers nationwide who employ nearly 1.9 million people (approximately 4.5 million total lives), the 2007 UBA Health Plan Survey is the nation’s largest and most comprehensive survey of plan design and plan costs. “With a growth rate of approximately 20% over last year’s previously unprecedented number of respondents, the report defines benchmarks for a greater number of specific industries, regions, and employee size categories than have been available previously,” says Bill Stafford, UBA’s vice president, member services. “The results will be especially valuable to employers in evaluating the effectiveness of their current plans and to knowledgeably make future adjustments while keeping their benefits both competitive and cost-effective,” said James McCormack, chairman and CEO of Diversified Insurance Services, Inc.   The survey report provides vital benchmark statistics on hundreds of health plan factors, including detailed enrollment, plan design, plan cost, employee premium cost-sharing, prescription drug, retiree plan, and flexible spending account norms.  Among the survey’s numerous findings: The average annual health plan cost per employee nationally is $6,881 and $7,658 in Wisconsin (medical/Rx coverage), with an average employee cost of $3,110 and an average employer cost per employee of $3,771 nationally. Average premiums for all plans were $347 for single coverage and $848 nationally and $354 and $927 in Wisconsin for family (a weighted average of all non-single coverages). 32.7% of all plans required no employee contributions and 8.3% required no family contributions nationally and 13.7% and 7.5% in Wisconsin.  Of plans requiring contributions, employees contributed an average of 26.6% of premium or $90 for single coverage and 46.8% or $385 for family coverage nationally.  In Wisconsin the numbers are 28.5%; $97 and 33%; $303. Average premiums increased 7.2% for all plans (after any plan adjustments) versus 8.6% last year, with Consumer Driven Plans having the lowest increases at 4.9% nationally.  In Wisconsin those statistics are 7.4% versus 10.3% last year. Consumer Driven Plans (plans with an HRA or HSA) are now offered by 11.8% of employers versus 5.8% last year, with 3.6% of all covered employees now enrolled in such plans (also up from 3.4% last year).  The number in Wisconsin is much greater at 27.9%. The average employer contribution for a single to an HRA or HSA was $1,071 nationally, while average employer contributions for a single to an HRA or HSA was $1,143 in Wisconsin. The overwhelming majority of the increased adoption of Consumer Driven Plans have come from employers with under 1,000 employees, with the highest sub-segment being employers with less than 100 employees. "With employer health plan information reported for over 3,100 cities from virtually every state in the country, differences in plan design and plan costs among various regions and industry groups become quite clear”, says David LoCascio, UBA’s co-founder, “This unique level of detail enables UBA member firms to provide quantifiable benchmarks to empower their clients to make the most effective decisions possible regarding their health plans.” As an example, the survey data confirm that the often reported average family health plan premium cost difference for plans in the Northeast (13.8% above the national average) is largely attributable to those plans having richer benefits than any other region of the country. Specifically, 71.0% of plans in the Northeast have no single deductible, and an amazing 82.1% have no in-network coinsurance, versus roughly 30% for plans in other regions. Other important findings include: The median single PPO deductible of $500 remained the same as 2006, as did the in-network and out-of-network coinsurance at 80% and 60%, respectively and 90% and 60% respectively in Wisconsin. Both HMOs and CDHPs have approximately 10% lower annual costs per employee nationally than the average plan, while POS plans have nearly 11% higher annual costs per employee nationally than the average plan.  HMOs and CHDPs have approximately 7% lower annual costs per employee in Wisconsin than the average plan, while POS plan have nearly 6.5% higher annual costs per employee in Wisconsin than the average plan.  49.2% of covered employees also elect dependent coverage nationally, while that number is 52.4% in Wisconsin. 7.4% of all employers now offer comprehensive, non-insurance company- based wellness programs, mirroring the increasing trend toward consumer empowerment in healthcare. 74.9% of all prescription drug plans utilize three copays, with median copays being $10/$25/$50.  In Wisconsin those numbers are 83.1%, with median copays being $10/$25/$50. While 18.4% of plans provide coverage for same-sex domestic partners, regional differences are pronounced (53.7% of plans in the West; 22.4% in the Northeast; and an average of 2.1% in the rest of the country). Plan premiums increased approximately 0.6% more for employers with fewer than 25 employees than for all other employers. “The intent of the survey is to provide not only large employers with effective plan benchmarks, but most importantly to provide the 98.8% of employer plan sponsors who have fewer than 1,000 employees with benchmarking data that is critical in managing their programs effectively.  With an increasing number of employers having operations in multiple locations, a genuinely national survey of this size and scope is the most effective way to deliver that information,” said Diversified’s McCormack. Copies of the survey are available for purchase via UBA’s website at www.benefits.com. An updated companion report, the 2008 UBA Employer Opinion Survey, which delineates employers’ specific healthcare strategies, cost-containment efforts, opinions, and future expectations regarding their health plans, will be released in the Spring of 2008.   About United Benefit Advisors (UBA) UBA, (http://benefits.com), is one of the nation's largest employee benefits advisory organizations with over 1,900 experienced benefits professionals located in more than 165 offices across North America.  As an alliance of the nation's premier independent benefit advisory firms, UBA members are better positioned to help employers and employees respond more efficiently and effectively to the challenges of an ever-changing employee benefits marketplace.   For information regarding UBA, contact: Bill Howell, President 910-253-7283 bill@unitedbenefitadvisors.com For information regarding the 2007 UBA Health Plan Survey, contact: William Stafford Vice President, Member Services 317-705-1800 bstafford@unitedbenefitadvisors.com   About Diversified Diversified Insurance Services, Inc. is headquartered in Waukesha with a field office in Oshkosh.  Diversified is one of Wisconsin’s leading, full-service insurance firms, serving all of the insurance needs of businesses and individuals and the only UBA affiliate agency in southeastern Wisconsin.  For more information about this survey, please contact Jim McCormack, chairman and CEO or Matt R. Weimer, director of group operations at (262) 574-0440.  Web site: www.div-ins.com. Or contact Alan L. Gaudynski, APR at (262) 436-0380. Health Payment Systems Announces Partnership with Leading National PPO Officials of Health Payment Systems (HPS), a unique, relatively new Milwaukee-based company which accelerates payments to providers in exchange for higher discounts and passing those savings on to employers, has announced the signing of a contract with a leading national PPO, Interplan Health Group (IHG). “Since most of our work with employer groups is through Third Party Administrators (TPAs), signing this fully-engaged partnership agreement with IHG, is the next logical step in our new company’s evolution,” said Bruce Lefco, HPS chairman and CEO. “Together we will be providing the market here in Wisconsin and eventually the whole country with a very efficient prompt pay network with higher provider discounts than most other PPO’s without the HPS element,” said Scott M. Settle, IHG’s senior vice president of sales and marketing.  “For most employers this new prompt pay network arrangement is a single point solution for self-insured employers looking to maximize their health care expenditures, “Settle added. Lefco said he had discussions with several PPOs, and selected IHG, “Because, like our company, they are competitive, flexible, and innovative in their approaches to trying to resolve some of the pressing health care cost and quality issues facing society today.” IHG currently has a presence in 18 states throughout the country including Wisconsin, under its brand, and the remainder of the states under the Superien brand.  It has a strong network in Wisconsin which includes over 15,000 providers.  IHG also owns and operates AmeriScript, a prescription drug benefit management company, (PBM). “Initially our focus in kicking off HPS has been Wisconsin. This new agreement gives us the impetus to go to other markets throughout the U.S.,” Lefco continued. Lefco and Settle are currently discussing having conjoining offices here in Milwaukee, Chicago, Cleveland, Louisville, Arlington, TX, Sacramento, Stockton, and San Diego, to help fuel the measured growth strategies of both companies. In addition to the group health network PPO, IHG also offers specialty care networks, including workers’ compensation, an auto network, a health payers organization (HPO), out-of-network negotiations, pharmacy benefit management, care management, a dental care program, credentialing and quality assurance and claims repricing. Lefco and Settle agree that what each company brings to this agreement will make both stronger and appealing to employers looking for creative solutions to their health care concerns. For more information about Health Payment Systems: www.hps.md For more information about Interplan Health Group: www.interplanhealth.com Interplan Health Group PPO Appoints Vandertie VP Officials of Interplan Health Group, (IHG), a national Preferred Provider Organization, (PPO), have announced the appointment of Curt L. Vandertie to the new position of vice president of sales, midwest region and lead contact person in Wisconsin.  Vandertie has 12 years of experience in PPO sales, client services, claims, and electronic data information administration in Wisconsin.  Most recently, Vandertie held the position of vice president, client services, at HealthEOS by Multiplan in De Pere. According to IHG’s national senior vice president of sales and marketing, Scott Settle, “We are grateful to have Curt Vandertie leading our Wisconsin sales.  His depth of background in health benefits and the relationships and trust he has been able to build in the Wisconsin market will be invaluable to us as we introduce our first prompt payment system network, Interplan Health Group driven by Health Payment Systems.” IHG has worked with Wisconsin employers in managing their health care costs for 14 years.  The company has offices in Milwaukee, Waukesha County and the Green Bay area.  Vandertie’s office will be in the Green Bay area. For more information about IHG go to: www.interplanhealth.com or call 877- HPS-IHG3 (877-477-4443). Bringing Back Sherman Park Diversified’s Corporate Social Responsibility Program In an effort to clean up, restore, and beautify Sherman Park and to celebrate it’s 25th Anniversary of being in business, Diversified Insurance Services, Inc. of Waukesha, in a joint effort with the Volunteer Center of Greater Milwaukee, the Sherman Park Community Association, the Milwaukee Tennis & Education Foundation, and Milwaukee County Parks, will gather on Saturday, June 9th from 8am to 4pm to “Bring Back Sherman Park” at 3000 North Sherman Boulevard. Over 100 volunteers and associates from these organizations will be on hand to spearhead restoration and renewal projects. These will include renovation of the park’s baseball diamond and tennis and basketball courts, adding wind screens and backboards to the tennis and basketball courts, adding new park benches throughout the park, as well as painting, planting, raking, mulching, sanding, and general cleaning of the Park. As part of this corporate giving program, Diversified will also be underwriting part of the cost of a full-time summer on-site activities director.  The idea for this corporate social responsibility program came about when Diversified’s Chairman and CEO, Jim McCormack, began discussing with his partners and associates what they’d like to do to celebrate the company’s 25th Anniversary. “After several discussions we decided on a day of giving back to the community which made us successful, rather than a banquet or picnic,” McCormack said. “After deciding that this was the right thing to do, we contacted Bonnie Andrews at the Volunteer Center and decided that restoring and renovating Sherman Park was the perfect way to do it.  We think this is an excellent way to begin our next 25 years and celebrate our past successes,” McCormack concluded. Sue Black, Milwaukee County Parks Director, applauds McCormack and Diversified for providing the manpower and funds to “bring back Sherman Park.” “We hope other area corporations will explore such partnerships with us to help make our parks the best they can be,” Black said. Conserver:  Enlightening Consumerism Through Advanced Technology Whether surfing the Web, watching television, listening to the radio or reading a newspaper, not a day goes by that we don’t find a story on our environment and the benefits to mankind about going “green.”  Now a web-based decision support tool has become available in this age of health care consumerism to use available personal claims data to save some “green” for both employers and employees.  Conservent, the Germantown, WI, based benefits administrator, and it’s sister company, Virtual Benefits Administrator, are now offering Conserver, a high-tech, easy-to-use, Web-based benefit solution which helps brokers and their employee groups to achieve predictable health care spending and trending stability. “We did a fair amount of research before we recently made our Conserver Benefit Solution product available to the marketplace,” said Bob Brower, vice president of sales for Conservent. “Our product has six elements: Health Plan Tools Health Plan Evaluator Benchmarking Modeling Analysis Price Transparency Health, Wellness, & Risk Evaluation,” Bower continued “Many aspects of our program are unique,” he said. In this age of growing consumerism, the Conserver approach provides each employee with his or her own medical and prescription drug data with answers within seconds of logging on to Conserver’s secure site.  With all of the benefit options available, Conserver provides each employee with an easy and personalized way to evaluate the plans placed before them.  It gives them the power to decide which plan is best for them and their families, based on the previous year’s claim experience, including medical and drug costs, utilization, out-of-pocket expenses, premiums, wellness credit and other incentive information.  All of the analytics used in Conserver are very user-friendly. Tom Witter, Conservent’s president said, “Of all the technology we’ve reviewed, Conserver takes a truckload of data from the claims history of each employee and their family members, analyzes it and presents it in elementary terms most people have no trouble understanding.  It is the most comprehensive and innovative technology to help health care consumers make the most accurate choice of health plans available.  It takes all of the mystery out of HSA’s, HRA’s, and other benefit elements which have been very confusing in the past.” One of the real tests is to see if it “passes muster” in the real world.  This technology provides employers with HIPAA compliant case management information, critical to reducing annual health care cost expenditures. A large retail food supplier experienced progressively increasing cost trends for a number of years.  Like many employers, management was having a rough time getting it’s arms around their spiraling costs.  They needed to: Continually monitor their health care expenditure Understand opportunities for cost reduction within the plan Measure the impact of various actions taken Conserver’s Health Plan Tools, the Web-based software, was implemented to facilitate the data analysis.  Historical claims were analyzed in a standardized format and ongoing monthly feeds were established with the TPA and PMB. The company’s HR, benefits and finance executives, and its broker/consultant all accessed the online analytic reports to fuel their benefit strategies.  The food retailer was then able to drill down, right online, and download a HIPAA complaint list of 61 employees with claims over $25,000.  Their 61 people accounted for over 45% of the company’s total claims expense.  These are all candidates for care management.  Previously, only three of these employees were in care management.  The company was able to use online modeling tools to re-process their actual claims information with alternative plan designs to test the impact of these different plan designs. “With Conservent introducing the predictive modeling advanced technology of Conserver, it is now one of a few benefits administrators in the country that can now compete with the likes of Humana, Anthem Blue Cross, WPS, and United Healthcare,” Andrew Serio, broker/consultant and president of Healthcare System Consultants, Inc., said. “This is one of the finer decision support tools I’ve come across in the marketplace.  Conservent always seems to anticipate the present and future needs of employers and the brokers who serve them,” Serio concluded. Advanced technology, easy to understand and user-friendly.  What’s not to like? For more information about Conserver and the other services provided by Conservent and Virtual Benefits Administrator, go to www.conservent.net or www.vbasoftware.net or call Bob Brower at (262) 946-1240. Former Super Bowl I & II Packer, Bob Long, Vindicated by the Federal Bankruptcy Court Judge Bob Long, former Lombardi era wide receiver and a member of the Packer team which won the NFL championship in 1965 and Super Bowls I and II, was recently exonerated by the Federal Bankruptcy Court Judge for the Eastern District of Wisconsin, in a suit filed by the Newton Falls, OH, venture capital group, Cadlerock LLC, as a result of debts incurred through a failed motel real estate deal in Antigo, Wisconsin. “This nightmare has been in process for over four years and cost me and my family tens of thousands of dollars to prove my innocence and restore my good name,” Long said. Since leaving the NFL, Long became a real estate and restaurant investor with most properties here in Wisconsin. In 1991, Long had a debilitating stroke and limited his ability to continue his investment work.  Several people took advantage of him in business deals during his recovery process. Long guaranteed the construction loan to build the disputed motel in Antigo upon receiving assurances from F&M Bank that the guaranty would be released once permanent financing was established.  Long never owned any part of the motel after the construction loan was paid in full. Margaret Berg, and her son, Dennis, owned 30% of the motel.  Without the knowledge of other minority investors, Margaret Berg sold the land in front of the motel and the motel’s sign, rights.  Since the motel cannot be seen from HWY 45 in Antigo, the occupancy plummeted as well as the finances when the sign was removed by the new land owner. F & M Bank was bought by another bank and sold the $1.5 million motel mortgage note to Cadlerock for $714,000.  There were several buyers for the motel and one offered $950,000, which Cadlerock rejected.  Even though Long had no ownership in the motel, Cadlerock badgered Long for over two years to try to get the $1.5 million, even though they only paid $714,000 for the note.  Their actions forced Long to declare bankruptcy, even though he had no ownership in the failed motel.  The motel was eventually sold in a sheriff’s sale. Friends and family of Long worried about the effects of this frivolous lawsuit on Long’s health.  Although Long admits his health suffered during this ordeal, he said, “The toughness Coach Lombardi instilled in his players, and the support of family and friends, plus the magnificent work of my attorney, Gene Johnson, have helped me get through this.” Now that the lawsuit was discharged and the judgment entered in favor of Long, he wanted to get back to his charity work he does for a variety of non-profits through Long’s Fundraising.  In recent years, Long has raised about $4 million for a variety of Wisconsin charities. Long will be taking a few weeks to finish some personal housekeeping matters and work on restoring his good name. “Now that I’ve been vindicated of any wrong doing, I want to thank anyone and everyone who supported me during this unfortunate ordeal,” Long said. “To me, regaining my reputation was most important,” he concluded.  Robert Jonas named Young Agent of the Year The Independent Insurance Agents of Wisconsin (IIAW) has named Robert Jonas, Diversified Insurance Services, Inc., Waukesha, as its Young Agent of the Year.  The announcement was made at IIAW's annual convention in Wisconsin Dells on May 10, 2007. In citing Jonas, Association President Bob Nadolske noted "it is difficult to single out one insurance professional under the age of 40 for recognition as we know so many dedicated, hard working candidates.  However, Robert Jones exemplifies the type of individual that can be mirrored by his peers." Jonas has been instrumental in the development of a Careers DVD to recruit college students and others for careers in the insurance industry.  Jonas has also worked enthusiastically to solicit industry support for the annual tri-state Midwest young Agents Conference. The IIAW is the state's largest professional association representing insurance agents, with over 3,500 members in Wisconsin.  They are headquartered in Madison, Wisconsin. For additional information, contact:  Ed Cantwell (800) 362-7441

CONSERVENT and HEALTH PAYMENT SYSTEMS: Partnering to Provide Clients with the Latest and Best The Wisconsin insurance and benefits industry has always taken the lead in providing employers and employees with the latest and best ways of managing their benefits.  Dating back to the industry’s pioneering efforts in Worker’s Compensation, to cooperative health plans, and now the application of advanced technology which adds efficiencies to the health care transaction, Wisconsin business is always seeking better ways to add ease to these transactions, while saving the employer and employee millions of dollars each year. Now one of Wisconsin’s leading benefit plan administrators, the Germantown-based Conservent, and the new and unique Milwaukee-based company which accelerates employer and employee payments to providers within 20 days and reduces health care costs for the payers with substantial provider discounts, Health Payment Systems (HPS), have blended their technologies to begin a new era of pioneering for the state’s benefits industry. “With some providers discussing employee ‘deposits’ for services when high deductible health plans are involved, we think our partnerships with HPS may just be the answer,” said Bob Brower, Conservent’s vice president of sales. “With our combined service, both the employer and employee claims are paid within 20 days with greater provider discounts; the employee gets a green-friendly easy-to-understand Super EOB for the whole family on one statement, and Stop Loss carriers are currently crunching the numbers which could result in an additional 3 to 5% discount in Stop Loss premiums,” Brower continued. The Conservent/Health Payment Systems partnership not only reduces the overall costs of health care for employers, but makes it much easier for employees to understand the true amounts they owe providers because of the easy to read and understand explanation of benefits (EOB) statement. “People are stressed when they are sick.  With our system the employees are relieved of additional stress, because they pay no charges up front.  Deductibles, co-pays and co-insurance amounts are not paid at the time of service,” said Pat V. Phillips, R.N., vice president of Health Payment Systems. “TPA’s in Wisconsin constantly search for avenues to provide additional value and service to their current customer base as well as potential customers. Conservent is a forward thinking, customer driven TPA that is willing to embrace technology and cutting edge ideas such as Health Payment Systems to bring that value to their clients,” Phillips concluded. Bruce Lefco is the driving force behind Health Payment Systems and is its chairman and CEO.  He is also enthused by this partnership. “Initially, we will only work with a small group of TPA’s who have the technology to interface with our system.  We are very excited to be working with Conservent as they are with us,” said Bruce Lefco, Health Payment System’s chairman and CEO. “As we enter the next level of benefit management, we need partners such as Conservent, who are constantly fine tuning their approaches to advanced technology and customer service,” Lefco concluded. Stop Loss carriers are also pleased with the announcement of this partnership.  Now groups of 51 or more have a very viable alternative to the costly fully-insured plans.  Through combined risk stop loss programs, employers can experience: Lower fixed costs Employer reimbursement programs Access to high provider discounts Cost certainty for budgeting, especially for school districts and         municipalities Lower premium taxes Annual Stop Loss premium savings in the thousands of dollars Substantial savings from lower claims. Greg Tierney is sales director for Starline Group, a full-service, stop loss and specialty accident underwriting manager and Lloyd’s correspondent, headquartered in Falmouth , MA .  Tierney observes, “We are very pleased to be working with such advanced technology companies like Conservent and Health Payment Systems.  We are in the process of reviewing the data and are confident it will result in savings, not only for the employer, but also the employees as well.  This program not only sheds more light on the predictability of claims cost, but also helps employers become more aware of potential large, ongoing claims which result in better risk management and cost containment.  The ‘HPS Super EOB’ also helps to alleviate employees’ anxiety when trying to determine individual out-of-pocket expenses,” Tierney concluded. According to Conservent’s president and CEO, Tom Witter, “This partnership with HPS is a natural part of our technological evolution.” As benefit plan administrators, Conservent has clients in 24 countries, owns Virtual Benefit Administrator and leases this technology to others in need. In addition to regular medical claims processing, Conservent goes far beyond the standard plan administrator offerings.  Also available through Conservent are: Choice One, Individual Insured Short Term Medical Vision, Dental, Pharmacy, Short and Long Term Disability Claims Processing HRA’s Flexible Spending Account Training Risk Management Discount Cards Online Management Reports Staff Translation Services Benefits Consulting “HPS came along at the right time.  Working together, we’ll provide our clients with the very latest technology to help them actively address the cost and quality issues we all face,” Witter concluded. Web sites: www.conservent.net and www.hps.md.

Health Payment Systems, Inc. Names Management Team Milwaukee, WI …A new company headquartered in Milwaukee, Health Payment Systems, Inc. (HPS), has named its management team.  Bruce M. Lefco is chairman and CEO; Eric Butlein, co-chairman; James A Brindley, president; Trish Nienow, RN, COO; James Meyers, vice president-contracting; Tom Hajny, vice president-finance; Pat V. Phillips, RN, vice-president-sales. HPS is a unique national company which accelerates payments to providers from individuals and employer/payers in one payment, in 20 days, in return for “best in market” managed care contracts from providers to self-insured employers and their employees. For more information call HPS at (414) 271-5100 or visit the Web site: www.hps.md.

Health Payment Systems, Inc.: Adding Efficiencies to the Health Care Transaction Milwaukee, WI…Health Payment Systems (HPS), a company which accelerates payments to providers and reduces health care costs for insurers/employers/employees, has started operations in downtown Milwaukee. The new company’s focus is on health care reimbursement, the system through which health care service providers receive payment from insurance and patient liability, a system that is in chaos.  Payers, providers and patients alike are all unhappy with the system in place.  It is costly and slow to pay.  Patients are frustrated with understanding what they really owe the provider, and their image of their provider often takes a hit, due to real or perceived less-than-satisfactory customer service. “Unless this system is changed drastically, this reimbursement system will only get worse, due to more and more employers offering Consumer Directed Healthcare (CDH) plans,” said Bruce M. Lefco, chairman and CEO of the new, Milwaukee-based, Health Payment Systems, Inc.   Lefco explained that the percentage of employers offering high-deductible CDH plans was at 7% in 2004; 13% in 2005; 29% in 2006; and estimates put the 2007 percentage at 33%.  Hospitals and doctors could be faced with a ten-fold increase in what they must collect directly from patients.  This could have the providers tapping their lines of credit to pay day-to-day expenses and add more to the cost of healthcare and doing business.  “If they work with us, they will not need to add staff to the business office, and in many cases may be able to reduce administrative expenses,” said Lefco. “The technology which drives our new business features a process which pays the healthcare provider claim within 20 days in a single payment, which not only includes the employer/insurer portion of the claim, but also the employee/patient portion of the claim.  Providers are willing to offer us greater discounts, which we will pass on to employers and consumers in exchange for prompt and simplified payment,” Lefco continued. “Currently, hospital bills are outstanding for almost 60 net days prior to payment.  About 26¢ of every healthcare dollar is spent on claims processing and about 35% of claims are reprocessed,” he said. Lefco, former president and CEO of HealthEOS by MultiPlan, Inc., is considered by many to be an expert in healthcare reimbursement and financing matters.  In the early '90’s he purchased WPPN, a preferred provider organization (PPO).  A few years later, under the HealthEOS umbrella, he purchased another Wisconsin-based PPO, HCN, and a few years ago purchased AHC and Touchpoint Preferred.  He built HealthEOS into the state’s leading PPO, covering more than 1.3 million Wisconsin lives.   “Lefco is a serial entrepreneur, and a true expert in healthcare financing related activities.  When I became involved in discussions a few years ago about starting a business which would provide a solution where all parties involved:  the providers, the payers, and the patients could benefit from a break-through concept that could actually reduce costs for all of the stakeholders, it really resonated with me.  I felt that if we could assemble a very experienced team we’d be able to refine the concept and we just might be able to accomplish something that could benefit thousands and perhaps millions of people.  Bruce was the perfect fit for the CEO role, he has enormous knowledge and experience in this sector of the industry and his entrepreneurial skills and track record are remarkable.  I am happy that he is leading our team,” said Eric Butlein, co-chairman of HPS. Lefco is a long-time resident of the Milwaukee area and believes strongly in the work ethic of the people in Wisconsin.  All of the HPS senior management are from the Milwaukee area. He moved to the Phoenix area so a special needs family member could receive the appropriate attention and care, and will continue to commute from Phoenix to Milwaukee to run HPS, which is locally owned and has a local and national focus.  HPS has a senior management team with extensive experience in information technology, healthcare receivables management and healthcare systems and contracting. Health Payment Systems has been in the works since 2004.  Lefco thinks the solutions HPS offers are unique.  Providers benefit from: Faster reimbursement on claims Predictable/improved cash flow Reduction on business office expenses No bad debt expense Enhanced customer service Employers benefit from: Better provider discounts Less administrative costs Happier employees Third Party Administrators (TPA’s) benefit from: The ability to compete with national carriers Offering clients provider networks at the best possible discount Patients benefit from: Clarity, better information, lower complications Potentially lower out-of-pocket costs The main customers of Health Payment Systems are employers who self-fund or self-insure their employee benefits, and the TPA’s who service them. The company’s passion to have a major impact on improving healthcare transactions is further explained in a 16-page white paper on the subject on the company’s Web site: www.hps.md.  The office location for Health Payment Systems, Inc. is 411 East Wisconsin Avenue, Suite 1250, Milwaukee, Wisconsin 53202.  Telephone: (414) 271-5700.   Left to right: Sue Sanders, executive assistant; Susan Sharmach, executive assistant; James Brindley, JD, president; Trish Nienow, RN, COO; Tom Hajny, vice president, finance; Jim Meyers, vice president, contracting; Eric Butlein, co-chairman; Pat Phillips, RN, vice president, sales; Bruce Lefco, founder, chairman and CEO

Business Foundation Confirms Milwaukee Has High Physician Fees Milwaukee, WI…The Greater Milwaukee Business Foundation on Health, Inc. (GMBFH), known for its research on the cost, efficiency and quality of health care in the greater Milwaukee area, has released its first study specific solely on physician fees.  It concludes that Milwaukee resides at the expensive end of the health care cost spectrum relative to physician fees, when compared to other major Midwest cities. For example, fees for the physician services studied are typically 30-40% higher in Milwaukee than in Cincinnati, Kansas City and St. Louis. “Although extremely alarming when you consider the negative impact of these high costs on future economic growth in southeastern Wisconsin, these results are not surprising,” according to Jim Wrocklage, the executive director of GMBFH. “The foundation’s groundbreaking health care cost study released in 2002 contended that Milwaukee’s health care costs were high across all spectrums of health care- inpatient, outpatient, ambulatory and ancillary services.  However, at the time, few people wanted to accept the study’s conclusions.  Since then, study after study, including GMBFH’s March 2005 study, has validated the area’s high health care cost.” When informed of the conclusions concerning Milwaukee’s high physician fees, Tim Sullivan, CEO of Bucyrus Erie stated, “Skilled and mobile labor will be difficult to attract and retain in Milwaukee, especially if they can obtain a higher standard of living in competitive urban areas such as Cincinnati, Kansas City and St. Louis.  As a result, Milwaukee companies will not be able to be price competitive if they must pay these skilled workers higher compensation and health benefit costs than elsewhere because of the high cost of healthcare in Milwaukee.” According to Wrocklage, “The foundation’s board wanted to focus its new research on physician fees because they are becoming the largest single component of total health care costs in the community.  As a result, GMBFH engaged Merton D, Finkler, Ph.D, of Lawrence University to compare fees for specific physician services in four medical specialties - cardiology, orthopedic surgery, radiology and gastroenterology - for Milwaukee and Chicago, Cincinnati, Cleveland, Detroit, Indianapolis, Kansas City, Minneapolis-St. Paul, and St Louis.  The time period studied was December 1, 2004 through November 30, 2005."   According to Finkler, “Commercial transactions prices for specialty services in each of the four areas studied were higher on average, and especially for those paying the highest prices, in Milwaukee than in the other metropolitan areas studied.  Stated differently, purchasers in Milwaukee have agreed to pay substantially more than purchasers in other metropolitan areas." Relative to the foundation’s objective to identify the factors leading to Milwaukee’s higher physician fees, Finkler did not find statistically significant evidence for four commonly cited factors.  In particular, physician-pricing patterns did not follow hospital patterns; lower Medicare payments did not imply higher commercial prices; higher poverty rates did not imply higher commercial prices; and a higher concentration of health insurers did not yield lower physician transactions prices. Finkler also studied the market structure of physician practices (single specialty group practice, multi-specialty group practice, and non-group practice) and found that none of the markets studied, for any of the four specialties, had reached a level of concentration that would suggest anti-competitive effects, based on Department of Justice criteria.  He suggested that further study of these urban areas should be devoted to obtaining a comprehensive portrait of the character of bargaining and contracting for specific, high volume, high cost, episodes of treatment.  GMBFH has hosted three meetings since April of this year with leaders of hospitals, physician groups, employers, health plans and various governmental units concerning Milwaukee’s continuing high health care costs.  Another was scheduled for yesterday to determine if a plan could be developed to reverse this negative trend.   The Greater Milwaukee Business Foundation on Health, Inc., was created as a private operating foundation in 2002.  Its mission is to undertake studies, programs and activities that promote the general health of the persons residing in the greater Milwaukee community or advance their awareness of health and health care delivery issues affecting them and/or the community.  More information about the foundation, its board of directors, past and current initiatives and a copy of the complete report, The Physician Marketplace – A Comparison of Central USA Metropolitan Areas, can be found on its Web site: www.gmbfh.org

Business Foundation Identifies Factors Leading to Milwaukee's High Health Care Costs Milwaukee, WI…The Greater Milwaukee Business Foundation on Health, Inc. (GMBFH), known for its research on the cost, efficiency and quality of health care in the greater Milwaukee area, has released the results of its latest study concerning factors likely contributing to Milwaukee’s high health care costs at a meeting on Wednesday in Brookfield with area providers, employers, other payers, business leaders and government officials.  In addition, GMBFH offered specific recommendations to the attendees with the request that they work with each other and others in the broader community to collaboratively address the problem.  According to Jim Wrocklage, GMBFH’s executive director, “The foundation initially asked Milliman to compare 2003 commercial hospital inpatient payment rates in Milwaukee to those of hospitals in eight other Midwestern cities, St. Louis, Cincinnati, Cleveland, Minneapolis, Kansas City, Detroit, Chicago and Indianapolis.  The comparison indicated that average payment rates were higher in Milwaukee than in seven of eight of the comparison cities.  In two cases, it was about 40% higher.  Given Milwaukee’s high cost position, the foundation then engaged Milliman to compare elements of the health care environment in three cities, St. Louis, Cincinnati and Detroit, to learn more about causes for Milwaukee’s higher payment rates.  These three cities experienced substantially lower inpatient costs than Milwaukee, and comparable health care and economic environmental information was available.” “The real story is not that Milwaukee's inpatient hospital costs are high.  Several other studies have already identified this problem.  The real story is that we’re starting to understand the causes,” said Clark Slipher, the study’s co-author and a consulting actuary at Milliman. Milliman concluded there was no single factor substantially responsible for Milwaukee’s higher inpatient hospital costs.  The study identified that Milwaukee’s relative cost position was predominantly the result of the interaction and balance of five factors which resulted in stronger upward price pressure from hospitals and less downward price pressure from health plans and other commercial purchasers (payers) in Milwaukee than was present in the other study markets.  The five identified factors in no priority of order were: Payer Market Concentration – Milwaukee’s payers generally had smaller market shares (and likely less price negotiation leverage) than found in most of the study cities. Hospital Risk Sharing – Payer contracts with hospitals in Milwaukee were more likely to shift risk for certain types of hospital operating cost increases to payers than in other cities. Hospital Operating Costs – Per unit hospital operating costs in Milwaukee were 14 to 26 percent higher, even after adjustment for wage rate differences among the other cities. Provider Configuration – Milwaukee’s provider systems tended to be more geographically concentrated than in the other study cities.  Milwaukee tertiary hospital market shares were more widely distributed among all hospital systems than in the other cities. Governmental Cost Shift Burden – Milwaukee’s largest health systems had a greater burden for governmental payment shortfalls than the largest systems in other cities. The balance of these factors in the comparison markets resulted in lower average inpatient hospital payment levels than in Milwaukee.  Foundation officials believe that the identified factors in this study are likely to apply to outpatient hospital settings as well. GMBFH recommends that the following actions be taken to reduce Milwaukee’s health costs to levels consistent with the lower cost Midwest cities by engaging all of the parties in the dialogue Aggregation of Purchasing Power -    Milwaukee area employers, payers and governmental entities take the steps necessary to increase their aggregate purchasing power. Redistribute Risk for Hospital Operating Cost Increases - Milwaukee area hospitals and other providers accept fixed price contracts that place the providers at risk for increases in operating costs, similar to the contracts in the low cost markets. Reduce Hospital Operating Cost - Milwaukee area hospitals commit to verifiable reduction of per-unit operating costs to a level equal to the average of Midwest cities within three years and to the lowest quartile of Midwest cities within five years with a corresponding reduction of commercial fees.   Increase Competition for Non-Tertiary Health Services - Competition among all health systems for regularly, utilized health care services including primary care physician visits, routine diagnostics and non-tertiary hospital services should be encouraged, particularly in those areas of the market with limited choices among health systems.  However, GMBFH does not endorse increased competition for all hospital services.  It opposes further expansion of lower volume, tertiary services to more hospitals within the Milwaukee area. GMBFH also encourages each Milwaukee area health system to evaluate the cost savings that would result from consolidation or closure of the tertiary programs that operate at volumes less than community averages. Equalization of Cost Shift Burdens - Payers, providers and government units, if necessary, must develop meaningful methods to more equally distribute the financial burden associated with governmental payment deficits and/or the delivery of care to the uninsured and indigent populations in our community. . Jim Wrocklage emphasized that the foundation board believes this study helps identify that Milwaukee’s relatively high health care costs are associated with an interrelated, self-reinforcing set of factors.  “No single ‘magic bullet’ solution exists, nor can any single entity act alone effectively to resolve the vicious cycle of escalating costs.  Individual, rational actions of the various health care constituencies in this setting are more likely to perpetuate than resolve these issues.  Therefore, a collaborative response across the region is needed,” Wrocklage concluded. To that end, GMBFH will be hosting collaborative meetings with providers, employers, health plans, government units and other interested parties on Wednesday, July 12th and Tuesday, July 25th.  Inquiries should be directed to Jim Wrocklage at 262-893-8997 or gmbfhinc@aol.com.  Also at the meeting, a study the foundation commissioned on physician costs specific to four medical specialties was presented by Merton D. Finkler, professor of economics at Lawrence University , Appleton It showed these costs to be higher than all of the other cities in the study as well. “The impact of continued high health care costs could have a devastating effect on future economic development in southeastern Wisconsin,” Wrocklage said. The Greater Milwaukee Business Foundation on Health, Inc., was created as a private operating foundation in 2002.  Its mission is to undertake studies, programs and activities that promote the general health of the greater Milwaukee community by advancing awareness of health and health care delivery issues affecting them.  More information about the foundation, the board of directors, past and current initiatives and a copy of Milliman’s complete report to the foundation, Factors Contributing to Higher Hospital Inpatient Payment Levels in Milwaukee, can be found on its Web site: www.gmbfh.org.

Left to right: Bob Sowinski, Diversified Insurance; Greg Matzek, WTMJ-AM620; Jonathan Green, WTMJ-AM620; and Jim McCormack, Diversified Insurance are preparing for Jim's radio spot on the Greenhouse Business Spotlight.

Our crew producing some TV spots for Church and Chapel Funeral Service.  Left to right Ted Larsen, owner of Church and Chapel, Alan and Julius Fomotor.

My wife, Diane Gaudynski, was recently named a Master Quilter by the NQA, National Quilting Association, and her quilt "Through a Glass Darkly: An American Memory" has been judged to be the 16th Masterpiece Quilt in their Masters Program, initiated in 1980. It also won the Pfaff Master Award for Machine Artistry at the International Quilt Festival in Houston, Texas, and a $5000 cash award. Exhibited in Tokyo, Japan at the Tokyo Dome in January, it was viewed by over 250,000 people. It can be seen in the 2003 Lang Quilt Calendar, Diane's recently published book Guide to Machine Quilting (available at amazon.com) and on Diane's Web site: www.dianegaudynski.net

If you haven't already, please think about giving a gift to the American Heart Association, Northland Affiliate, 660 E. Mason Street, Ste. 200, Milwaukee, WI 53202.

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For more information about these clients call (262) 436-0380.

Alan, left, caught and released this 30 lb., 46-inch Musky late October on a lake near the Boundary Waters in northeastern Minnesota. Scott Schuster (right), boat captain, friend and Musky fishing mentor, netted the fish. Ten minutes later Alan caught and released a 40-inch Northern Pike. Photo by Brian Horvath. Musky hunter, Alan, on a recent trip to the Winnipeg River system near the Ontario/Manitoba border. Alan caught and released this 43.5" Musky this fall in the Winnipeg River system near the Ontario/Manitoba border.