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COMING UP:Share Opener Variant 1



>> Physician Larry Kwan sees himself as the village doctor at Sisco's sprawling Silicon Valley campus. He's been at the tech company spotlight health center for over two years, part of a new experiment at Cisco.>> Cuz I'm in their space talking about things they do on a regular basis, that may affect their care or their health, right, the whole wellness thing.
It's different if you're in an ivory tower, waiting for them to come when they're ill.>> That's the premise for companies fed up with runaway healthcare costs and bad medical service to take direct control. Reuters health care correspondent Caroline Humer.>> So Cisco's been trying to get at costs for a decade by managing healthcare pretty closely on their campus.
But last year, they started something new and they found that they can save money by just managing how much people go to a specialist.>> For back pain, patients would first see a chiropractor, physiotherapist or acupuncturist rather than starting with more expensive MRI tests. Employees who are part of the plan can see their primary care doctor here at the campus healthcare center, that has a gym, cafeteria, childcare, and examinations rooms with sofas, large screen TVs, and dimmed lights.
For specialists, they're sent to a doctor in the Stanford healthcare network.>> If there's a catastrophic case, if somebody lands in ICU, it's not about necessarily trying to reduce costs, it's about providing the best care, right? And so in those cases, we are just saving lives, right? But it's the complex chronic cases that we wanna insure that are being managed well and being managed right.
>> Cisco joins Intel, Boeing and Walmart, which are all working directly with hospitals to control costs. And now, the company known for disrupting everything from publishing to retail, is stepping in to take control of employee healthcare. Amazon has partnered with JP Morgan and Warren Buffet's Berkshire Hathaway, and a source tells Reuters, they'll be looking at models like Cisco's.
Cisco has so far convinced about 1,000 employees and family members to try the new plan. And already in one year, the healthcare cost for those on the new plan has fallen about 10%.