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The Managed Care Insider eNews
Volume Three Number 12
December 2001
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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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