
The era of rising healthcare costs created a new discipline in the business world. Large employers such as industrial giant General Electric (GE) wanted to know why healthcare costs were disproportionately eroding profits, how to spend wisely, how to design worker benefits that made sense and how to reduce waste. In the early 1990s, self-funded GE was spending $800 million annually on healthcare, so a cost reduction of just 5% would equal $40 million, or the equivalent of 800 jobs.