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The Managed Care Insider eNews

Volume Three Number 12

December 2001

Welcome to The Managed Care Insider eNews.

You are receiving this because you have subscribed; the eNews is never sent unsolicited. Subscribe/unsubscribe information can be found at the end of this eNews. The Managed Care Insider eNews is published, copyrighted, and owned by The Scheur Management Group, Inc. (SMG), http://www.scheur.com and is distributed monthly, free to subscribers. If you wish to forward this edition, you may do so only if the edition is forwarded in its entirety. No reproduction of any part of this publication is permitted without the express permission of the publishers.

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The focus of this issue of The Managed Care Insider eNews is on loyalty. Whether it is employer/employee, business/customer or nation/citizen, loyalty carries the onus of commitment and responsibility. Read on and, as always, please email your comments to insider@scheur.com.

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Insider Vision
by Barry S. Scheur, President, Scheur Management Group;
President, The Oath, Inc.

The Meaning of Loyalty

After September 11, in the wake of the tragedy that made us focus on what's important in our lives, the outpouring of patriotism has been greater than at any time since World War II. Patriotism can be translated as loyalty to one's country. Loyalty to country as well as to customers and employees is a good thing. But is there another reason for this groundswell of patriotic fervor? I think there is, and it's something we need to consider. For the last several years, many Americans haven't known what to believe in, and we have been woefully short of heroes in all the usual places we expect them to come from -- sports, business, and our political leadership.

In business, the real test of loyalty right now is what companies are doing when confronted by the challenges of falling sales and financial losses in the wake of this national tragedy. Sadly, I have recently heard employees of more than one company cynically say that these events have given their bosses a legitimate excuse to do what they intended to do anyway -- cut work forces, benefits, and bonuses.

As we struggle with the challenge of business survival in this period of uncertainty, I think the business owner's true test of moral leadership, courage and loyalty is in not taking the easy path by passing off economic hardships onto others, but rather first taking them on ourselves.

Several weeks ago, I was honored to receive a 2001 Reynolds Society Achievement Award from the world-renowned Massachusetts Eye and Ear Infirmary. I was very moved by this recognition because I have never thought that my blindness qualifies me for anything other than providing me with some insight about the obligation of giving back to your community, your employees, and your customers -- especially at a time of challenge.

The Society, in conferring its award, asked that the recipients give more than a "thank you" speech. What I said in those remarks is what I believe about business and life, and I'd like to share an excerpt with you.

"If I'm ever asked what are the things that I believe in, the list would be pretty straightforward:

* To see all situations as providing opportunities for learning, growth, and a chance to interact with new people and be exposed to new ideas.

* To try to see people for whom they think themselves to be, rather than what they are labeled or perceived as. Unfortunately, too often both in business and in life, others' perception becomes the reality, as unfair as that may be.

* To love the people who are closest to you, be it family or friends, and to demonstrate the pricelessness of that love without equivocation or compromise."

We are at a point where we really need to think about what loyalty means in the context of what we do and how we act toward others every day. I keep rebelling at the degree to which business decisions are made purely on a financial basis, rather than on a relationship basis. I keep trying to put into practice my core philosophy that you demonstrate loyalty at its most basic level by listening and responding to people as a primary moral focus, and that if you do this, the financial rewards will come from this behavior.

I am struggling every day with financial challenges from our health plans, and we have had to do a lot of internal retooling and cost cutting. We have had to lay off people, reduce expenses, and tighten our belts -- but that also means it has to be done personally by an organization's leadership setting an example.

Loyalty is not an entitlement; it has to be earned on the basis of how you deal with others, not just during the good times when it's easy, but also during the tough times. You cannot expect loyalty unless you are willing to tell the truth to those who are facing the same economic and personal challenges in their own lives that you are facing running a business.

I can only hope that, in operating The Oath (formerly Venture Health Partnership Group) and its health plans under the business principles that we set forth about truthfulness and putting our customers and our employees first, I live up to the standards that the Reynolds Society Award represents.

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Sites and Sounds on the 'Net

James P. Kelly, Chairman and CEO of United Parcel Service, delivered a keynote talk on employee and employer loyalty at the 1998 Human Resource Planning Society's Annual Conference. The speech is located at http://www.ups.com/europe/ch/news/speech/gerloyalty.htm

Cultivating employee loyalty at http://www.greenbeam.com/features/we100697.html

Customer loyalty is addressed in the CEO Challenge 2001 Survey at http://www.accenture.com/xd/xd.asp?it=enWeb&xd=ideas%5Creport.xml

US Congress has designated May 1 as Loyalty Day. Read the President's proclamation at http://www.whitehouse.gov/news/releases/2001/04/20010426-4.html

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What's New...

1. Venture Health Partnership Group Takes The Oath

Venture Health Partnership Group (VHPG) has changed its name to The Oath, Inc. to signal the brand image it shares with its health plans, The Oath for Louisiana and The Oath for Alabama. The Oath's mission: to realize the original promise of managed care.

The Oath's chairman, Barry S. Scheur, states, "In its purest, original form, the job of managed care was to find a way to manage the cost of delivering quality care. Somewhere, managed care lost its way, caving in to the quest for profit and the dictates of shareholders. Our health plans, and now our parent corporation, carry the name The Oath because of the promise we make to the people we serve, to one another, and to our providers. We created this company to acquire financially distressed provider owned-HMOs and turn them around, reshaping the practice of managed care one health plan at a time. At The Oath we strive to put people first, to respect the integrity of our physicians, and to be open and honest, giving our members full disclosure of information about their purchased healthcare benefits."

The Oath's strategic marketing partner, Trumpet, has set the company's brand image in advertising campaigns that have ranged from a directed anti-managed care message established to set the tone for telling the truth about the problems besetting this industry, to its most recent humorous campaign speaking to the fear consumers have about HMOs. Trumpet partnered with The Oath to help distill the company's identity and create an integrated communications strategy to bring Scheur's vision to life.

"The Oath is bringing a national solution to the perception and operational problems that plague managed care," says Trumpet principal Jim Gradl. "The Oath isn't just the product name. It's the heart and soul of the company."

Scheur continues, "Our ad campaigns, our direct approach to the truth, and our name raise the bar for us. We've put ourselves under the magnifying glass by calling attention to these problems and proposing solutions. Our people, our employees, are committed to making our health plans world class customer service companies that will set a standard for the future of managed care.

About The Oath, Inc.: The Oath is a private equity corporation whose goal is to acquire distressed and under-valued provider-owned HMOs and manage the turnaround and ongoing operation of these companies. See http://www.theoath.com or contact Nancy Belle, VP Communications/Market Strategies, 617.893.9208, nbelle@theoath.com.

About Trumpet: Trumpet is a national marketing communications agency specializing in brand introduction and brand renovation. From its offices in New York and New Orleans, Trumpet services a range of national accounts in consumer and business-to-business and high tech segments. For more information, visit http://www.trumpetadvertising.com.

2. Barry S. Scheur expounded on his Revolution in Managed Care recently in a Sky Radio Entrepreneur interview. You can hear Mr. Scheur at http://www.skyradionet.com/index2.html. At the site, select Radio Entrepreneur. Scroll down to The Oath, Incorporated on the right side of the screen. Select Listen to hear Mr. Scheur's plan to revolutionize managed care.
Sky Radio develops business, technology and health programming to meet the interests of the executive business traveler.

3. On November 2, 2001 the Massachusetts Eye and Ear Infirmary held its 15th Annual Reynolds Society dinner at which a 2001 Reynolds Society Achievement Award was presented to Barry S. Scheur for his "exceptional achievements in business and managed care." This award is presented to those individuals challenged by the loss of "hearing, vision, or speech whose accomplishments are an inspiration to others." Read more at http://www.vhpg.com/vhpghome.nsf/webcontent/whatsnewspr011113.html

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Happy Holidays! On behalf of everyone at Scheur Management Group, The Oath, Inc. (formerly Venture Health Partnership Group), The Oath - A Health Plan for Alabama, and The Oath for Louisiana, we wish you joy, health and peace in 2002.

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End of The Managed Care Insider eNews,

Volume Three, Number 12.

Scheur Management Group (SMG) is one of the most experienced specialized healthcare operations management and business revitalization consulting firms in the country. Our expertise is in time-sensitive analyses, strategic business and market planning, operational re-engineering, and communications, as well as implementation of start-ups, expansions, and new products. The firm's clients cover the spectrum of insurers, managed care organizations, physician groups, integrated delivery systems, hospitals, employers, governmental entities, vendors, and other providers.

Contributing to this edition is Barry S. Scheur. Editing and Research by Judith Jaffe. Production Coordination by Nancy K. Belle.

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