“
The company gets €3,200 for each resident who doesn’t have to visit the doctor each year, so each healthy person makes a profit for the company and there’s a clear incentive to keep people healthy
“The fee won’t cover the treatment costs of residents with very complex care needs, which obviously means that the company makes a “loss” on each person whose care costs more than the €3,800. “But the company also gets €3,800 for each MänttäVilppula resident who never visits a doctor during the year. So each healthy person, who doesn’t require any care, makes a “profit” for the company. So there’s a clear incentive to keep residents healthy and out of doctors’ surgeries and hospitals. “It’s a great model for local authorities, because it allows them savings and efficiencies, but also gives them half of any earnings made by the joint venture company. They can then use that surplus for anything else they need to provide – from building schools to investing in other services.” 36
healthclubmanagement.co.uk October 2018 ©Cybertrek 2018
KEEPING IT LOCAL According to Minna Elomaa, Pihlajalinna’s head of business operations for southern Finland, the model’s economic benefits go beyond the direct savings in healthcare costs. “At the heart of the joint venture blueprint is a vision to ensure that services remain in the local area close to the people who need them,” Elomaa says. “This means that the infrastructure which delivers the services creates jobs for the local community – from doctors and social care workers to suppliers – which in turn boosts the local economy.” The model has already proven highly successful and there are now fi ve joint venture companies across Finland, with each producing considerable savings – and returns – for the local authorities involved.