As area employers are faced with rapidly rising healthcare benefits costs, many businesses have sought out innovative strategic solutions to provide employees with best-in-class healthcare benefits, as well as benefits addressing employee well-being to remain competitive in the market and attract and retain top talent. Several Houston employers have forged non-traditional partnerships with Greater Houston’s largest healthcare provider, Memorial Hermann Health System, designed with an eye to managing healthcare costs, providing high-quality care, and improving the health of the region’s workforce.
To learn more, the Houston Business Journal convened leaders from healthcare, policy, and business for a panel discussion on how employers can access more tailored, personalized and integrated solutions intended to augment traditional insurance services based upon a specific employer’s needs, while offering best-in-class clinical services and support.
Chaired by KHOU 11’s Ilona Carson, the conversation covered value-based partnerships, on-site wellness initiatives, the impact of recent policy changes, and strategies for managing rising specialty drug costs, all while keeping employee well-being at the center.
Redefining Value in Healthcare
Dr. David L. Callender, President and CEO of Memorial Hermann Health System, opened the discussion by acknowledging the central challenge facing employers today. “This year, employers have experienced one of the largest increases in health insurance costs, and employees as patients and healthcare consumers, are extremely cognizant of the cost of care, whether that’s in their monthly premium obligation or in their required cost share, particularly with the increasing prevalence of high-deductible health plans.
That means, as healthcare providers, we must stay focused on value and show our communities how we are bending the cost curve without sacrificing access or quality.”
Memorial Hermann’s direct- to-employer portfolio includes a range of programs and initiatives, from health navigator programs to employer direct networks. Serving as a partner to employers, the health system creates solutions to augment traditional insurance services based upon a specific employer’s needs and offers high-quality clinical care.
These programs have been shown to improve the overall health and well-being of employers’ workforce, which furthers their business objectives and financial goals through improved productivity, employee retention and satisfaction rates, and reduced employee insurance utilization costs. A widely-cited analysis published in Health Affairs found that for every dollar invested in employee wellness programs, medical costs decreased by $3.27 and absenteeism-related costs by $2.73 – representing a roughly six-to-one return on investment.
Dr. Callender continued, “As we look ahead, our focus on value is clear—continue executing with discipline, invest where it matters most, and ensure every decision we make is mission-anchored and drives value for our patients, our workforce, and the communities we serve.
It is important to note that value is not just the lowest price for a single service. We cannot minimize the immense work required to deliver value in healthcare by a race to the bottom to achieve the lowest price or charge for discrete services. The critical distinction is that providing high-quality, high-value care will lead to a reduction in hospital admissions, improved management of chronic diseases, and a focus on overall wellness.”
Dr. Callender also addressed the impact of rising healthcare costs on Memorial Hermann in its role as one of the region’s largest employers. “We are also experiencing these year-over-year escalations in the cost of benefits. It’s a significant business cost. The challenge is that there are many different stakeholders thinking about health, healthcare, and the associated costs, and each one has a different perspective. We all need to be engaged in addressing this problem, working together, and partnering to solve it.”
Data-Driven Decisions at Daikin
Kristi Pittman, Senior Vice President of Human Resources at Daikin Comfort Technologies, illustrated how partnerships work in practice. She explained how Daikin analyzed their claims and discovered cancer claims had doubled or tripled since COVID. They partnered with Memorial Hermann to bring mammogram screenings directly into their Memorial Hermann on-site clinic, staffed by three Memorial Hermann providers and its HealthWorks team.
The screenings became popular with employees, with appointments filling up the moment new dates were announced. “For our employees, it’s early detection that’s going to save their lives,” she said. But there’s also the cost benefit: “A stage I or stage II breast cancer compared to a stage III or stage IV is half the cost. It’s a $200,000 claim versus a $1 million claim.”
These kinds of partnerships extend beyond physical health. When Daikin consolidated four or five locations into one large factory, stress levels among employees rose. The HR team found themselves acting as informal counselors, which stressed the HR team itself. Daikin went back to Memorial Hermann with a request for greater counseling services.
The result was a full-time counselor available at no cost to employees in a confidential setting. “Adding that single resource has provided so much value, not only to our employees, but for our supervisors as well, teaching them how to recognize signs of depression or chronic conditions,” Pittman said.
Policy Changes Creating Coverage Gaps
Elena Marks, Senior Fellow in Health Policy at Rice University’s Baker Institute for Public Policy, outlined an upcoming challenge for employers to consider while expanding access. The enhanced ACA premium tax credits that Congress implemented during COVID expired at the end of last year, and early data suggests there will be significant impacts for employees and businesses alike.
When premiums rise and subsidies shrink, healthier individuals often drop coverage entirely or choose plans with higher deductibles and lower benefits, she explained. “You start seeing people neglecting preventive care,” Marks said. “Patients wind up in emergency rooms for conditions that should not have become severe.”
Dr. Callender noted another ripple effect: some employees who had chosen marketplace plans over employer-sponsored coverage may return to company health plans. “We need to think about what that means and work with them to make sure they have the support they need,” he added.
The upside, Marks continued, is that employers have more flexibility than payers to invest in upstream interventions that may not pay off immediately. Income is highly correlated with health outcomes, and while employers can’t control where their employees live or their education levels, they can influence behavior. “We’re seeing healthcare providers using healthcare dollars to pay for food,” Marks said, noting that healthier choices can lead to better outcomes.
We serve as a partner to employers and create solutions to augment traditional insurance services based upon a specific employer’s needs and offer high-quality clinical care. This strategy improves the overall health and well-being of employers’ workforce, which furthers their business objectives and financial goals through improved productivity, employee retention and satisfaction rates and reduced employee insurance utilization costs.
Government’s Role—And Its Limits
Steve Kean, President and CEO of the Greater Houston Partnership, offered his take when it comes to government intervention amid rising costs. “First, do no harm,” he said. “You have to think carefully about what you ask the government to do, because they’re not necessarily effective or efficient at everything.”
Kean pointed to facility fees as an example of misguided policy targets. “You’re in a facility. It costs money to have that facility,” he explained. “Attacking that as part of the cost of healthcare may not be a productive use of our legislative resources.”
His experience leading a large energy company through COVID-19 vaccination efforts revealed differences between office and field workers. In-office vaccination rates hit 80%, while field locations were short of 60%. “There was a difference between what they were hearing from different sources depending on their environment,” Kean recalled. “The experience underscored the importance of trust and communication across the healthcare experience.”
Opportunities in Digital Health
Dr. Callender identified the rise in mental health issues as a challenge for health systems and employers, noting the spike in mental health concerns presenting since COVID. He noted the opportunities provided by emerging digital health solutions as a standout when asked about emerging trends affecting employer-sponsored health plans. Virtual care and mental health integration are essential, as shown through the impact on employee behavior.
“We have to partner together on a larger scale to address all of these issues—and mental health is an increasing issue facing many people that hospitals need to be prepared to manage effectively,” said Dr. Callender.
Dr. Callender continued, “One solution—to address mental health and other emerging issues more efficiently—is the digital opportunity we’re embracing currently. That has the most potential and can have the most significant impact over time.
A lot of this is about making sure employees have the information they need when they need it. If it’s convenient, accessible, and simple, then patients have the right guidance. That’s what we’re thinking about as we partner with different employers. What tools do they have? What can we offer? How can we best support our employees, so they have very convenient, readily available access to information and support?”
Building A Wellness Culture
This approach to integrating access is something Pittman has experienced firsthand at Daikin. Prior to consolidating into one large facility, Daikin struggled with wellness programs. The initial approach involved wellness champions scattered across multiple locations, which became difficult to sustain. With everyone under one roof, Memorial Hermann became a partner in setting up lunchtime wellness activities, such as blood pressure checks, A1C screenings, and counseling sessions, all on-site.
The key to engagement, Pittman explained, is word of mouth. “Employees have to feel safe to recommend these services to others,” she said. Consistency matters too—not just one-off events, but ongoing opportunities. Specific interventions are crucial as well. Daikin recently added a menopause-specific benefit targeted at their aging workforce. “You don’t always have to provide a benefit for the entire population—sometimes digging in and finding unique things creates real opportunity,” Pittman said.
The clinic became the hub for flu shots as well as COVID-related services. This centralized approach is now part of Daikin’s care culture. Wellness happens in two ways, Pittman noted: some employees are intrinsically motivated to be healthier, while others experience a crisis that suddenly makes it a priority. “What we have through the clinic is that opportunity to help every employee in that journey,” she said.
Preparing for Future Trends
Looking ahead, Dr. Callender identified increasing drug costs as one trend employers should prepare for now. “There’s an amazing number of drugs in the development cycle right now. They’re expensive to develop and deploy. There is a drug that currently costs $2 million per dose,” he said. “This is a real opportunity for partnerships now. We need to work together to manage employee healthcare needs.”
Marks highlighted a different kind of workforce trend: the rise of non-physician healthcare workers. “Community health workers don’t need any specialized education,” she noted. “Employers can look for a navigator on-site. Those non-medical workers can help improve health outcomes at a lower cost.” The jobs are good, the connections to health resources in the community are valuable, and the cost is manageable.
Kean kept his prediction simple: the rising demand for mental health care among an aging workforce. Pittman echoed the drug cost concern, noting genetic drug costs in particular. “It’s hugely rewarding to see someone healed, but they can have a huge price,” she said.
Underutilized Strategies
When asked about benefit strategies that may be overlooked, Callender returned to his central theme: partnerships. “I want you all to think about approaching the health system that you work with,” he said. “Consider if they are engaged partners in helping you find cost savings and proactive, preventive care strategies for your employees. Could you have a conversation about the things you’re seeing, utilization patterns, and the things you could do together to manage costs and enhance service to your employees? If not, I would ask you to consider an organization that is not only open to these conversations but one that is actively pursuing employer solutions that lower your benefit expenditures while providing more effective, high-quality care that improves the health and well-being of your workforce and helps you recruit the talent of the future.”
Marks pushed employers to look beyond medical benefits. “I would encourage employers to look at non-medical benefits that can actually improve health. Health club memberships are one example. Childcare subsidies and parental leave policies beyond FMLA are another. These interventions can make employees healthier and more productive in ways that increasing medical benefits can’t,” she said.
Kean offered a practical focus rooted in statistics. “About 5% of the patients account for 50% of healthcare costs. You’re not going to be able to do much about that. It’s focusing on the other 50% that matters. Focus on people being fit and eating well,” Kean said.
Pittman’s answer was straightforward: wellness benefits in general are underutilized. “A lot of folks have a mindset of waiting till there’s a crisis,” she said. The solution is pushing preventive care in targeted areas—such as cancer screenings or diabetes management—and making it familiar. “Healthcare can be intimidating for patients, so we have to make it universal. It’s not so foreign to come and get your blood pressure checked. Those kinds of preventative measures lead to better outcomes.”
The Path Forward
By engaging in partnerships focused on practical improvements that make a difference in the health and well-being of employees, a select group of Houston’s business leaders are proving that managing healthcare costs and improving health outcomes can work in tandem to create a healthier workforce and yield long-term savings for benefits plans. The partnerships currently taking shape across the city demonstrate what’s possible when employers, health systems, and policymakers work together to deliver measurable improvements in both cost management and employee well-being.
Final Thoughts
By engaging in partnerships focused on practical improvements that make a difference in the health and well-being of employees, a select group of Houston’s business leaders are proving that managing healthcare costs and improving health outcomes can work in tandem to create a healthier workforce and yield long-term savings for benefits plans. The partnerships currently taking shape across the city demonstrate what’s possible when employers, health systems, and policymakers work together to deliver measurable improvements in both cost management and employee well-being.
This was a sponsored post written in collaboration between Memorial Hermann Health System and the Houston Business Journal. It was originally published in the Houston Business Journal on Friday, May 1, 2026.