The Personal Costs of Obesity

People who are overweight and obese face many difficulties their normal weight peers do not. Frequent doctor visits are a fact of life for overweight and obese people, due to the development of weight-related disorders such as diabetes and osteoarthritis. Along with the daily difficulties associated with these diseases, the overweight or obese person may be personally affected financially as a result of weight-related expenses and reduced income.

The personal consequences and costs of obesity are serious, and the personal financial cost great. Multiple studies have shown that obesity significantly negatively affects personal and working relations, wages, and advancement, particularly for females.

While the health problems as the overweight/obese age may ravage savings, an overweight/obese person may have difficulty accumulating those savings in the first place. One of the earliest sociological studies of the overweight, in 1966, found that the heaviest students had a harder time getting into top colleges. The obese, particularly white women, are paid less. A study by Cornell University found that a weight increase of 64 pounds above the average for white women was associated with 9 percent lower wages.

I can personally attest to the ceiling placed on the obese; the jobs that are available to you based on your talents and abilities are often not received; there can be pattern of coming in second in interviews. This is particularly so when the job involves social context or a large amount of meet and greet.

Overweight people may or may not spend more than normal-size people on food, but their life insurance premiums are two to four times as large. They can expect higher medical expenses, and they tend to make less money and accumulate less wealth in their lifetimes. They can have a harder time being hired, and then a harder time earning promotions. People carrying as little as 30 to 40 pounds extra can be seriously affected.

In 2004, The Obesity Society created a Task Force on weight which found accumulating evidence of clear and consistent bias, stigmatization, and in some cases discrimination, against obese individuals in three areas of living: employment, education, and health care. They also reported that recent studies have documented automatic negative associations with obese people among health professionals and among obese individuals themselves.

In addition to the negative financial impact that excess weight carries, there is also impact on quality of life. People who are severely overweight may have difficulty performing simple daily tasks, such as tying shoes or walking up a flight of stairs. Many obese people have trouble sitting in, or can not trust the weight limit of, standard furniture. It becomes difficult to go to restaurants or theaters, or to utilize public transportation. Many bathroom facilities would be inaccessible to the obese were it not for the availability of the much larger handicap stall. While I was able to use the regular stalls when I weighted a little over 300 pounds, which is certainly obese but not gargantuan, there were many that were on the small size, and getting in and turning around to shut the door was awkward, if not difficult.

Think about all the places you might not go if you had to be worried about fitting in, or not breaking, the chairs; think of all the places that have booths, which have fixed distances from the table. Consider the size of the average subway turnstile. Go window shopping and mentally buy several stylish items; then go to one of the plus size departments or stores and try to replicate the satisfaction you had mock shopping in your size range. Tie a few gallon water jugs to yourself and see what it is like to sit in your own furniture.

If you are really looking to get an inkling of the reality, fill the jugs with water and carry in your groceries. Water weights about eight pounds a gallon, so you can see what it is like at 50 pounds overweight, 100, 150. I doubt many of us could handle carrying around enough jugs to bring our weight up to the 500, 600 or higher that some people live with; the obese put the weight on over time so tend not to realize just how much weight they are asking their backs and knees to support. There is no way to truly feel what it is like physically to be obese: things like raw inner thighs from chaffing and permanent raw indentations from bra straps can not be duplicated.

These problems may seem trivial to some, but they represent serious, multi-layered difficulties that can have both a cumulative and a rippling effect. If you are afraid you might not be able to use facilities, long shopping trips become less inviting. If your size affects your lung capacity, you may have trouble sleeping, which can affect your performance at work, which in turn may worsen the experience of day-to-day financial strains. So might the ability to keep up, literally.

Duke University Medical Center researchers reported in 2004 that obesity significantly impairs the sexual quality of life. Obese people report sexual problems such as lack of desire, lack of enjoyment, avoiding sex, and performance difficulty at a much higher rate than people of normal weight.

Overweight and obese people are frequently stereotyped as emotionally impaired, socially handicapped, and as possessing negative personality traits. Evidence of discrimination is found at virtually every stage of the employment cycle, including selection, placement, compensation, promotion, discipline and discharge, according to research presented by Western Michigan University. In addition, this bias extends to job assessments of overweight individuals in their various work related roles, both as subordinates and co-workers.

According to recent studies, wages of mildly obese white women were 5.9 lower than standard weight counterparts; morbidly obese white women were 24.1 percent lower. In contrast to females, the wages of mildly obese white and black men were higher than their standard weight counterparts. Men only experienced wage penalties at the very highest weight levels.

The potential effect of applicant weight, age, sex and race on ratings of job candidate acceptability in a laboratory setting was examined in 1988. Overweight candidates were rated significantly lower, but none of the other criteria manipulations had a significant effect. Michigan is the only state that prohibits employment discrimination on the basis of weight.

The Americans with Disabilities Act (ADA) is a federal statute that protects qualified individuals with disabilities from discrimination on the basis of disability in the workplace. Since the enactment of the ADA, the Equal Employment Opportunity Commission has taken the position that people who are morbidly obese (body weight more than 100 percent over the norm) are disabled and protected under the ADA. This leaves a huge number of obese, but not morbidly obese, unprotected in forty-nine of fifty states. It also puts those who do qualify under obligation to bring an ADA law suit to rectify a qualifying situation. And you still have to prove it was discrimination due to obesity.

Compared to normal weight people, morbidly obese and massively obese people are more likely to incur instances of institutional and day-to-day interpersonal discrimination. Morbidly obese and massively obese persons report lower levels of self-acceptance than normal weight persons, yet this relationship is fully mitigated by the perception that one has been discriminated against due to body weight or physical appearance: a more palatable reason psychologically than character or personality defect, or a job not well done.

Unflattering portrayals of obese people pervade popular culture, while multiple studies document that children, adults, and even health care professionals who work with obese patients hold negative attitudes toward overweight and obese persons. Twenty-eight percent of teachers in one study said that becoming obese is the worst thing that can happen to a person; twenty-four percent of nurses said that they are repulsed by obese people.

Obese people who believe that their health care providers look down upon them may avoid seeking care; this reaction is potentially dangerous given that obese individuals are at an elevated risk for many health conditions.

Research conducted over the past 40 years shows that obese people are viewed as physically unattractive and undesirable. Obese individuals also are viewed as responsible for their weight due to some character flaw such as laziness, gluttony, or a lack of self-control and self respect. Obese persons may form negative self-evaluations as a reaction to the pervasiveness of negative attitudes toward obese persons and real or perceived discriminatory treatment.

Interpersonal consequences of severe obesity are most acute for members of higher socioeconomic strata. A number of studies suggest that upper-middle class Americans are less likely to be obese, more likely to adopt negative views toward the obese, and more likely to view thinness as an ideal body type; the belief that obesity is a consequence of laziness may be particularly common among those with richer resources and opportunities. Physical appearance and putting forth a positive image of your employer also may be a more critical aspect of job success in professional occupations than in blue-collar or service occupations. In all of our surveys, the only striking difference in obesity statistics was a drop in the obesity percentages in the shopping playgrounds of the wealthy.

The Employment Law Alliance (ELA) released findings from its America at Work Opinion Poll portending a rise in lawsuits alleging employment related obesity discrimination. The survey found 47 percent of obese Americans believe they have suffered discrimination in the workplace, while 32 percent think obese employees less likely to be respected and taken seriously in the workplace. Nearly 40 percent of those who identified themselves either as obese or overweight contend they deserve special government protection against weight-based discrimination in the workplace, though only 26 percent of individuals of normal weight echoed that contention.

Studies show that overweight and obese students, especially girls, are less likely than the non-obese to be accepted by the more competitive colleges. This is true even if their grades, standardized test scores, and other variables are the same as for other boys and girls.

Overweight people are less likely to attend college even though they score high on standardized tests and are academically motivated. Also, overweight women are more likely than other men or women to pay their way through college.

Overweight students are more likely to be refused letters of recommendation from faculty members.

There has been some change in the practices regarding hiring of the obese, as so much more of the employment force has become obese there is not often an option. Look at the number of employees you see in stores and businesses in a day, and you will notice that there are more obese employees than there were when you were a child. But it does not remove the ceiling or reduce the promotion restrictions that shadow the obese.

A study of 1200 doctors revealed that, although physicians recognized the health risks of obesity and perceived many patients as overweight or obese, they did not intervene as much as they thought they should, were ambivalent about how to manage obese clients, and were unlikely to refer them to weight loss programs. Only 18 percent of physicians reported that they would discuss weight management with overweight patients, and only 42 percent of physicians would have this discussion with mildly obese patients. I have lived and worked in five states in my lifetime, and have had jobs in six different counties in California, so I have had many different primary physicians in my adult lifetime, and I can tell you that most never broached the subject of my weight, and the few who did merely remarked that I should lose some.

In a 1969 survey of physicians, obese patients were described as weak-willed, ugly, awkward, and selfindulgent. In a more recent physician survey, one of three doctors said they respond negatively to obesity, behind three other diagnostic/social categories: drug addiction, alcoholism, and mental illness. A survey of severely obese patients found that nearly 80 percent reported being treated disrespectfully by the medical profession.

Physicians are not immune to obesity. Ironically, physicians report fifty percent of their physician colleagues are obese. The Physicians’ Health Study reported that 44 percent of male physicians are overweight, and 6 percent are obese. Although there are no published data on obesity in female physicians, the Nurses’ Health Study demonstrated that 28 percent of female nurses in the United States are overweight, and 11 percent are obese.

Researchers at the Mayo Clinic recently released the results of a survey of more than 2,500 obese patients who went to their doctor for a regular checkup over the course of a year. They found that only one in five of those people were listed on their charts as obese.

Discussing weight becomes even more complicated with children. According to a 2005 study in the Journal of Pediatrics, doctors diagnosed obesity less than 1 percent of the time among 2 to 18 year olds, a figure far below the one-third of young Americans struggling with overweight and obesity.

Among physicians, 17 percent reported reluctance to provide pelvic exams to very obese women, and 83 percent indicated reluctance to provide a pelvic exam if the patient herself was hesitant. Given that overweight women may hesitate to obtain exams and that physicians are reluctant to perform exams on obese or reluctant women, many overweight women may not receive necessary medical attention or preventive care.

Overweight and obese people get waited on more slowly than normal weight customers. They often encounter more difficulty making returns or exchanges than their thinner counterparts. When I was obese, sales people rarely asked to assist, and I often felt I had to track someone down; I assumed this was a general condition of the loss of the ethics of service of the old days. One thing I noticed when I became a size 4 was that sales people began to come up to me and ask if they could be of help much more frequently.

Results of a study by the North American Association for the Study of Obesity revealed that obese children were liked less and rejected more often by peers. Obese boys encounter more overt victimization (verbalteasing or physical aggression) and obese girls reported more relational victimization (cruelty by friends and cliques) compared with their average-weight peers.

Obese girls were also less likely to date than their peers. Both obese boys and girls reported being more dissatisfied with their dating status compared with average-weight peers. The results suggest that obese adolescents are at greater risk for mistreatment by peers and may have fewer opportunities to develop intimate romantic relationships; this may contribute to the psychological and health difficulties frequently associated with obesity; during adolescence, a time of rapid change in body shape and size as well as dynamic interactions with peers and parents, weight control is a particularly sensitive issue.

Recently school nurses reported being more likely to label obese children as sad and lazy. They overwhelmingly agreed with the statement Childhood obesity is a significant cause of peer rejection. Another recent study found that children who are obese are absent from school more than other children, missing an average of two more days than their non-obese peers. Interestingly, obesity seems to predict absenteeism more than any other factor, including school performance and socioeconomic status, two of the top reasons cited in the past for poor attendance. As a former public school teacher (at both elementary and high school levels, and as an principal and superintendent of schools pre-K-12), I can tell you that the number of days of school missed severely effects a child’s learning, and can carry forward in terms of lesser jobs and less pay for the rest of the life of a child. That is a steep personal cost.

Social attitudes towards obesity are negative and usually result in the adolescent becoming withdrawn and isolated. Obese adolescents have feelings of low self-esteem, social isolation, feelings of rejection and depression and a strong sense of failure. Obese children are more likely to engage in high-risk behaviors such as smoking,or consuming alcohol. Obese adolescent girls are more likely to become sexually active at a younger age in an effort to achieve acceptance and attention.

The prejudice associated with obesity is intense. Fat teenagers are often disregarded and subjected to ridicule. Most comments about fatness have negative consequences. Young people are often humiliated and frequently suffer permanent emotional scars. Fat people become tired of being judged by weight first and personality second. Adolescent girls who are dissatisfied with their bodies frequently try to lose weight in unhealthy ways, including skipping meals, fasting, and smoking to ward off hunger. A smaller number of girls are even resorting to more extreme methods such as self-induced vomiting, diet pills, and laxative use. Strict food denial in an effort to lose weight often leads to late afternoon or evening binging episodes. More than one-third of obese individuals in weight-loss treatment programs report difficulties with binge eating. This type of eating behavior contributes to feelings of shame, loneliness, poor self-esteem, and depression, and these feelings in return can spur additional eating as a means of solace.

In a study by the University of California, San Diego, researchers were surprised to find that the scores of obese children on a quality of life survey were as bad as cancer patients in every domain of life.

One obesity study asked severely obese persons to take a forced-choice questionnaire; for each question, they had to make a choice between being at their present weight or having some other given illness. The results were astounding. Although there were some variations on some of the questions, every obese person said that they would rather be blind or have one leg amputated than be at their present heavy weight. Most interestingly, every person who participated in the study would rather be a poor thin person than a morbidly obese millionaire.

Little wonder that depression is commonly linked with obesity, and, having been overweight and obese from age 5 to 50, I can personally attest that this chapter understates the multitude and magnitude of the true personal costs of obesity.

Outsourcing Transcription to Offshore Providers – Key to Reducing Healthcare Costs?

Outsourcing medical transcription work to offshore service providers has proven extremely effective in reducing overall transcription costs of individual health practitioners, clinics and hospitals. Organizations who outsource their work to offshore transcription providers save anywhere from 40 to 70 percent of the cost compared to doing the transcription in-house, or utilizing U.S.-based medical transcriptionists.

The other important advantage is that aside from the cost savings, there is the important aspect of a significant increase in quality of transcribed work because of the multiple editing and quality assurance steps built into the processes of offshore transcription providers, unlike U.S.-based individual transcriptionists which are primarily one-person operations. With outsourced transcription, you have an entire transcription organization servicing your needs: transcriptionists, editors, quality assurance specialists, efficient organizational processes.

The cost savings are possible because of the availability of highly-skilled, low cost medical graduates in prominent outsourcing destinations such as India and the Philippines. Based on a salary survey report for medical transcriptionists conducted by Payscale, the median salary for hospital-based medical transcriptionists is around $31,287 per annum, or approximately $2,600 per month.   In contrast, the average salary of a medical transcripionist in the Philippines, based on an online salary survey conducted by Jobstreet, the leading online job portal of the Philippines, is a maximum of $280 per month! This is 89 percent cheaper compared to the salaries of their U.S. counterparts. Even if you factor in the supporting quality check personnel, Philippine-based service providers still offer significant savings compared to U.S.-based transcriptionists. To illustrate:

  • A Philippine-based transcriptionist earns $280 per month
  • The support costs (salaries of editors, quality assurance specialists, admin, office costs, utilities) are more or less equivalent to effectively $300 per transcriptionist
  • Assume that the medical transcription service organization marks up by around 30%, therefore, you add another $174 per transcriptionist per month representing profits of the service organization.
  • Combine the three items and you get a figure of $754 per transcriptionist per month cost, significantly lower versus U.S.-based costs.
  • Compare this $754 per transcriptionist per month cost for outsourced transcription with the $2,600 per month salary of U.S.-based medical transcriptionists, and you get savings of $1,846 per transcriptionist per month, or 71 percent in potential savings!

The forecast U.S. medical transcription spending in 2010 is around $16.8 billion. Currently, only 40 percent of U.S. transcription work is outsourced to offshore providers. Outsourcing the remaining 60 percent transcription work to offshore providers represents a significant cost savings opportunity. Outsourcing this remaining 60 percent of the work to offshore providers, therefore, represent possible savings equivalent to $6.2 billion per year ($16.8 billion x balance 60% outsourced x 60% cost saving). Outsourcing transcription work, therefore, is a significant opportunity for reducing U.S. healthcare costs.

The Lost Costs With Administrative-Related Tasks With Group Health Plans

Health coverage is expensive- both for individuals and for companies that provide it.

The costs affect much of the medical field, including drug prices, cost of coverage,

costs of care and visits, and a myriad of other areas of the health industry. Part of

those costs is resulting from the administrative handling of health insurance logistics,

and those costs affect the rest of the field, too.

According to studies in the field, noted by the CAQH Index, in 2019 they noted that

“SPENDING ON HEALTHCARE ADMINISTRATION COSTS AN ESTIMATED

$350 BILLION ANNUALLY IN THE UNITED STATES DUE TO IT’S

COMPLEXITY.”

Data from the 2019 CAQH Index indicates that $40.6 billion or 12 percent of the

$350 billion spent on administrative complexity, is associated with conducting

administrative transactions tracked by the CAQH Index. Of the $40.6 billion spent on

these transactions, $13.3 billion or 33 percent of existing annual spending on

administrative transactions could be saved by completing the transition from manual

and partially electronic processing to fully electronic processing. The progress that

the industry has already made to automate these administrative transactions has

saved the industry over $102 billion annually.”

Administration is, of course, an important aspect of any industry, especially one as

complex as medical and related fields. The difficulty with modern health insurance

means extensive administrative hours as they tend to a myriad of issues on multiple

fronts. This means, as noted earlier, a great deal of expense that filters throughout

the medical field.

Unfortunately, small business owners tend to bear the brunt of these costs, at least

when it comes to businesses rather than people. As noted here,

“NOT SURPRISINGLY, THE COST OF PROVIDING HEALTH COVERAGE TO

EMPLOYEES LOOMS LARGER THE SMALLER THE BUSINESS,

BUT THIS ISSUE PLAGES BUSINESSES REGARDLESS OF SIZE”

The price tag on health insurance is a significant pain point for small employers. The

problem extends to recruiting and retaining talent, as well. To compete with larger

employers, small employers are hard-pressed to offer benefits like health insurance,

even as the benefit takes up a larger share of the bottom line. Two-thirds of

businesses (69%) said the problem has been getting worse. They reported that costs

have increased over the last four years; one-third of this group reported annual

increases of 10 percent or more. Businesses with fewer employees cited bigger

increases than larger businesses. Employers cited prescription drugs and lack of

choice of health care plans as pain points.

There are ways to curb this expense without impacting the medical field or health

insurance. One method is the increased use of digital materials. According to the

previously cited Index, “Although partially electronic transactions often cost less and

are less time consuming than manual transactions, there are savings opportunities

associated with moving from partially electronic web portals to fully electronic

transactions. For the medical industry, $2.7 billion of the $9.9 billion total savings

opportunity could be achieved by switching from partially electronic transactions to

fully electronic transactions. The greatest per transaction savings opportunity for

medical providers is a prior authorization. Medical providers could save $2.11 per prior authorization transaction by using the federally mandated electronic standard rather than a web portal. Understanding the impact of portal use in more detail is important as the industry focuses on opportunities to decrease administrative costs and burden.”

The medical field is one area where increased use of digital technology has lagged in

comparison to other fields. Concerns over confidentiality and security, combined with

outdated legislation, mean much in the medical field is handled with pen and paper.

That said, the COVID-19 pandemic has resulted in rapid inroads in digitization. Still,

administrative costs remain high, with subsequent effects throughout healthcare.

Along with the use of digital technology, another way to reduce costs is through increased automation. As noted by the previous study, “The 2019 CAQH Index estimates that the medical industry has avoided over $96 billion in annual administrative costs through efforts to automate administrative transactions. By comparison, the dental industry has avoided over $6 billion annually. For both industries, the largest annual savings has been achieved for eligibility and benefit verification at $68.8 billion for the medical industry and $3 billion for the dental industry. However, although the industry has already avoided significant administrative costs through automation, 33 percent of existing spending could be saved through further automation.

To continue to drive progress, harmonization is needed across all stakeholders to

reduce administrative costs and burdens. Aligning on a common understanding of the

barriers to electronic adoption and the business needs of the future is imperative for

plans, providers, vendors, standards development organizations, operating rule

authoring entities and government to maintain and improve upon industry

achievements to date.”

There are other ways to mitigate costs as well, without subsequent suffering in quality. One way is to reduce what one article sites as administrative waste. As noted by said

article,

“ADMINISTRATIVE WASTE AS ANY ADMINISTRATIVE SPENDING THAT

EXCEEDS THAT NECESSARY TO ACHIEVE THE OVERALL

GOALS OF THE ORGANIZATION OR THE SYSTEM AS A WHOLE.”

The National Academy of Medicine’s seminal 2010 work, The Healthcare Imperative:

Lowering Costs and Improving Outcomes, identified unnecessary administrative costs

as one of six key areas that need to be addressed to bring greater value and lower

costs to healthcare consumers.

ADMINISTRATIVE COSTS HAVE BEEN ESTIMATED TO REPRESENT 25-31%

OF TOTAL HEALTHCARE EXPENDITURES IN THE UNITED STATES,

a proportion twice that found in Canada and significantly greater than in all other

Organization for Economic Cooperation and Development member nations for which

such costs have been studied. Moreover, the rate of growth in administrative costs in

the U.S. has outpaced that of overall healthcare expenditures and is projected to

continue to increase without reforms to reduce administrative complexity.

It is thus important to differentiate administrative waste from necessary

administrative spending. As noted by the previously cited article, “A key segment of

wasteful administrative spending is found in the significant amount of paperwork

needed in our multi-payer healthcare financing system. Having myriad payers, each

with different payment and certification rules increases the complexity and

duplication of tasks related to billing and reimbursement activities. Hence,

“THE TOTAL BIR COMPONENT OF ADMINISTRATIVE SPENDING-

REPRESENTING ABOUT 18 PERCENT OF TOTAL HEALTHCARE

EXPENDITURES-IS OFTEN SINGLED OUT AS WASTEFUL AND A

POTENTIAL SOURCE OF SAVINGS. AN OFTEN-CITED STATISTIC IS THAT

HOSPITALS GENERALLY HAVE MORE BILLING SPECIALISTS THAN BEDS.”

A problem with separating administrative waste from proper administrative costs is

insufficient data. While healthcare provides, creates, and utilizes fast amounts of

data, that information is geared to specific fields and areas. As a result,

administrative data tends to be neglected and understudied. As this article notes,

“Our current understanding of administrative spending relies on a patchwork of

mostly aging analyses, leaving policymakers very much in the dark when it comes to

addressing this growing category of healthcare spending.

MOREOVER, PATIENT ADMINISTRATIVE BURDENS HAVE NEVER BEEN

TALLIED, REPRESENTING THE GREATEST GAP IN OUR UNDERSTANDING

OF ADMINISTRATIVE BURDEN. PATIENTS INCUR ADMINISTRATIVE COSTS

WHEN THEY ENROLL IN COVERAGE, RECEIVE CARE, AND GET

REIMBURSED FOR EXPENSES. PATIENTS WITH PARTICULARLY COMPLEX

NEEDS MAY EVEN RESORT TO HIRING A PATIENT- OR MEDICAL-BILLING

ADVOCATE OR AN ATTORNEY.

Other data gaps include research to identify potential administrative waste associated

with provider credentialing, pre-authorization or grievances and appeals.”

Though more data may be needed in regards to understanding administrative waste,

there are still methods to handle it and ensure expenditures on administration in

healthcare are spent properly. This will help reduce overall healthcare costs,

including health insurance. One of the costliest areas of administrative costs is

billing. This issue has been known for some time. As noted here, “In 2010, the ACA

tried to rein in administrative waste. In recognition of the high cost of billing and

payments, section 1104 of the ACA required the US Department of Health and human services to promulgate rules to standardize many aspects of billing and payments. Specifically, the ACA called for a national system to determine benefits eligibility, coverage information, patient cost-sharing to improve collections at the time of care, real-time claim status updates, auto adjudication standards, and real-time and

automated approval for referrals and prior authorizations. These actions were

supposed to be implemented in 3 waves in 2013, 2014, and 2016. However, only the

first 2 waves were implemented in 2013 and 2014. These regulations standardized

eligibility required real-time claims status, and created electronic fund transfer

standards.

THE MOST COST-SAVING ACTIONS, AUTO ADJUDICATION OF CLAIMS

AND PRIOR AUTHORIZATIONS, WERE SUPPOSED TO BE

IMPLEMENTED IN 2016 BUT WERE NEVER ENACTED.”

The matter is complicated by how to diffuse healthcare is within the United States.

There are federal administrations, state administrations, regional groups, corporate

groups, church groups, local clinics, and clinics operated by chains, such as CVS

Minute Clinics. The previously cited article makes note of this, stating that

“BECAUSE THE US HEALTHCARE SYSTEM IS SO FRAGMENTED, THERE

IS NOT A CLEARLY DOMINANT ENTITY TO SET ADMINISTRATIVE

STANDARDS AND FORCE ADOPTION.

The federal government is the largest payer, but its market power is not concentrated

because its payments flow through hundreds of different programs, including 50

unique Medicaid programs, Medicare, hundreds of Medicare Advantage plans, ACA

insurance exchanges, federal employee health benefits, the military health system,

Veterans Affairs, and the Indian Health Service.Each of these programs has governance over its administrative rules. Some programs, such as Covered California, use their local market power to force standardization of administrative elements, such as benefit design. The private sector alternatives lack either geographic reach or local market scale. The largest private sector entities are

the payers United Healthcare and Anthem. However, neither of these companies are

positioned to be administrative standard setters. United Healthcare lacks a local

market scale because it usually only accounts for 10% to 20% of patients for

clinicians. Anthem lacks geographic scale because it only operates in 23 states. Only

the Medicare system operates in all states and is accepted by nearly all health care

organizations, which means changes to Medicare’s administrative rules are adopted

nearly universally. Medicare is also a large payer, through the Medicare Advantage

program, to the largest commercial payers, which could enhance Medicare’s ability to

serve as an administrative standard setter. This makes Medicare the only participant

with the market power to set administrative standards.” As Medicare for All seems an unlikely, though useful solution,

OTHER AVENUES TO CURTAIL ADMINISTRATIVE WASTE NEED TO BE

CONSIDERED. ONE SUCH METHOD WOULD BE INCREASED USE OF

BILLING SPECIALISTS TO REDUCE THE NEED FOR ADMINISTRATIVE STAFF,

AND, AS A RESULT, THE AMOUNT OF ADMINISTRATIVE SPENDING.

Billing specialists are a good example because of the decentralized nature of the

United States healthcare systems. Centralized billing, even by a third party, would

help to reduce costs. As noted here, “Germany and Japan both have multiple payers

but centralized claims processing. Despite having more than 3,000 health plans,

Japan’s administrative expenditures were a stunningly low 1.6 percent of overall

health care costs in 2015, one of the lowest among OECD [Organization for Economic Co-operation and Development] member nations. In their analysis of three universal health care options for Vermont, including single-payer, researchers William C. Hsiao, Steven Kappel, and Jonathan Gruber estimated substantial savings from administrative simplicity from each option. The two single-payer options they examined would result in even greater administrative savings of between 7.3 percent and 7.8 percent, depending on the rate-setting mechanism. The group estimated that a third scenario, which would establish a centralized claims clearinghouse while allowing multiple payers, could generate savings equal to 3.6 percent of total expenditures. This suggests that about half of the total administrative savings from a single-payer system could be obtained within a regulated multipayer system.”

THUS, BILLING SPECIALISTS, ESPECIALLY OUTSOURCED SPECIALISTS,

CAN HEP REDUCE OVERALL HEALTHCARE COSTS.

As this article notes, “This process is more straightforward than in-house billing for

medical practice staff. They can scan and email superbills and other related

documents to the medical billing service provider.

Most medical billing service providers charge a specific percentage of the collected

claim amount, with the industry average being approximately 7 percent for

processing claims.

The convenience factor is a major reason that medical practices choose to outsource

their billing. A provider handles all the data entries and claim submissions on behalf

of the medical practice. They also follow up on rejected claims and even send invoices directly to patients.

If a medical practice is using electronic health records (EHR) software, then this

process becomes even easier. Practices can store information from a patient’s

superbill in the EHR and securely transfer data to the billing service provider using

the interoperability feature. This eliminates the need to manually scan and send

documents.”

There are benefits to in-house billing as well. The previously mentioned article

mentions that “The in-house billing procedure for processing insurance claims

involves many steps that are universal to every practice.

First, the medical staff enters information into the medical billing software from a

superbill that’s prepared during a patient’s visit. The superbill contains specific

diagnosis and treatment codes, along with additional patient information that the

insurance company needs to verify claims.

Using the software, the practice submits the claim to a medical billing clearinghouse,

which verifies the claim and sends it to the payer. The clearinghouse scrubs the claim

to check for and rectify errors (for a fee) before sending it to the payer. By not

submitting claims directly to a payer, the practice saves time and money and lowers

its claim rejection rate.”

BILLING SPECIALISTS, EITHER IN-HOUSE OR OUTSOURCED, ARE AN

EXCELLENT WAY TO REDUCE OVERALL HEALTHCARE COSTS.

By reducing administrative waste, costs, in general, can be reduced. This also means

those savings will, at least in theory, be transferred to clients. This is especially

important for small businesses, who are often the hardest hit when it comes to paying

for health insurance. As demonstrated, a major issue for health costs and their

increase is related to all the administrative costs.

Several studies have shown this to be true. As referenced in this article, “A new study

from Stanford University finds that

THE TIME EMPLOYEES SPEND WITH INSURANCE ADMINISTRATORS

CLEARING UP QUESTIONS AND ISSUES-CALLED “SLUDGE” BY

RESEARCHERS-HAS COSTS IN THE TENS OF BILLIONS ANNUALLY.

The study, led by Jeffrey Pfeffer, a researcher, and author found

THAT THE DIRECT SOTS OF TIME SPENT BY EMPLOYEES ON HEALTH

INSURANCE ADMINISTRATION WAS APPROXIMATELY $21.57 BILLION

ANNUALLY.

with more than half (53%, or $11.4 billion) of those hours spent at work.

The study noted that excessive time spent on managing benefits can have several

negative outcomes. “Red tape can exert significant compliance burdens on people’s

accessing rights and benefits, thereby imposing time costs and depriving people of

resources or services to which they are ostensibly entitled.”

Various measures can be implemented to help reduce the costs of healthcare.

Eliminating administrative waste through the use of billing specialists is one of these

methods. Not only can such specialists curb waste, they can also provide a cohesive,

centralizing force to a heavily decentralized system.

Newspaper Advertising Costs – 8 Factors To Consider

Calculating and comparing newspaper advertising costs can quickly get complicated. Once you’ve tracked down a newspaper advertising rates card, you’re then faced with the delightful challenge of making sense of it all. There’s no “one size fits all” to make our lives easy. Instead, newspaper advertising costs depend on a number of factors, some of which you might find surprising. To answer the question, “How much does it cost?”, the answer would be: “It all depends.”

8 factors that affect newspaper advertising costs (within the one publication) are:

  • type of ad
  • size
  • day of the week
  • section or lift-out
  • page position within a section
  • left hand side VS right hand side
  • colour VS black and white
  • annual spend/expenditure commitment

In this article, I’ll discuss the 8 factors that determine newspaper advertising costs in Australia. I’ll also provide an example of how much it would cost to place a display ad in The Courier Mail (a Queensland newspaper). As you’ll see, newspaper advertising costs can quickly add up. If you’re on a tight budget, as many of us are these days, knowing what most affects the cost, allows you to cut back where you can.

#1 Type of Ad – Display VS Classifieds VS Inserts

The first factor that decides the cost of a newspaper advertisement, is the type of ad. Most Australian newspapers offer a number of different types. Display advertisements appear throughout a newspaper, and may use colours, illustrations, photographs, or fancy lettering to attract the reader’s attention. These provide a great deal of creative control over the content of the ad, without being limited to just text. They also aren’t grouped according to classification, unlike classified ads. Display advertisements are typically charged at a rate per single column centimetre. In other words, the height in centimetres and width in columns determines the cost of the advertising space. On the other hand, classified ads are typically charged based on ‘lineage’ or per line.

Another form of advertising offered by most major newspapers are ‘inserts’ – separate advertisements that are placed inside the newspaper, and can have more than one page. Inserts are usually charged at a rate of per 1000 per number of pages. For the purposes of this article, we’re going to limit our discussion to display advertisements.

#2 Size Matters

The second factor that contributes to the cost of newspaper advertising, is size. As mentioned above, display advertisements costs are calculated based on their height in centimetres, and width in columns. Most newspapers have their own standard sized advertising spaces, which your ad needs to fit into. Some newspapers offer non-standard sized spaces, such as a ‘U’ shaped ad around the edges of an open paper, but be prepared to pay a higher price for irregular sizes and shapes.

Let’s look at the standard sizes available in The Courier Mail, as an example.

  • “Small Page Strip”, 6cm high by 7 columns wide, the minimum casual cost per day (based on a Mon-Fri Casual rate of $AU58.51) is $AU2457.42.
  • “Medium Page Strip”, 8cm high by 7 columns wide, the minimum casual cost per day is $AU3276.56.
  • “Quarter Page Strip”, 10cm high by 7 columns wide, the minimum casual cost per day is $AU4095.70.
  • “Horizontal Half Page”, 20cm high by 7 columns wide, the minimum casual cost per day is $AU8191.40.
  • “Full Page”, 38 cm high by 7 columns wide, the minimum casual cost per day is $AU15563.66.
  • “Vertical Half Page”, 38cm high by 4 columns wide, the minimum casual cost per day is $AU8893.52.
  • “Vertical Third Page”, 38cm high by 3 columns wide, the minimum casual cost per day is $AU6670.14.
  • “Vertical Quarter Page”, 38cm high by 2 columns wide, the minimum casual cost per day is $AU4446.76.
  • “Portrait Half Page”, 28cm high by 5 columns wide, the minimum casual cost per day is $AU8191.40.
  • “Portrait Third Page”, 20cm high by 4 columns wide, the minimum casual cost per day is $AU4680.80.
  • “Portrait Quarter Page”, 20cm high by 3 columns wide, the minimum casual cost per day is $AU3510.60.

Here you can see that the cost of a standard size display ad can range from at least $2457.42 per day for a small page strip, and up to at least $15563.66 per day for a full page advertisement. That’s an awful lot of money to invest in a single page, that will only be published on one day. Most of us simply don’t have that kind of cash to throw around, so you’d really need to know what you were doing. This example demonstrates how much the size of a display advertisement affects the price.

#3 Day of the Week

The third factor that contributes to the cost of a newspaper advertisement is the day of the week on which the advertisement is published. Typically, newspaper circulation is greatest on the weekends, and so the advertising rates for major Australian newspapers are adjusted accordingly. In our example of The Courier Mail, the rates are cheaper on a weekday, more expensive on a Saturday, and most expensive on a Sunday. For the most basic display ads, Saturday ads are 25% dearer than Monday – Friday ads, and Sunday ads are almost 90% dearer than Monday – Friday ads.

This pattern may vary though, depending on the circulation of a particular publication. For instance, The Age is most expensive on a Saturday. To illustrate how much of a difference it makes – a small page strip ad in The Courier Mail on a weekday would be at least $2457.42, and the exact same ad run on a Sunday would be at least $4637.64.

#4 Different Sections or Lift-Outs

Most newspapers are divided into different sections and many have lift-outs – and this is the fourth factor that determines newspaper advertising costs. Different sections attract different readers and different volumes of readers, and so the advertising rates are adjusted to reflect this. For example, an advertisement placed in the CareerOne (Employment) lift-out in The Courier Mail, costs 2% more than the general section. The rates for CareerOne, also vary depending on the day of the week, as mentioned above. Some examples of other sections that may have different rates include: Adult Services, Funeral Notices, Real Estate, and Business.

#5 Page Position Within a Section

The next factor that can significantly affect the price of a newspaper ad, is the page number on which the ad appears, within a certain section. The most expensive part of the paper is typically the front section, which might include the first 10 or so pages, and is referred to as the “early general news” or EGN for short. In our example of The Courier Mail, page 2 in the EGN section attracts a 60% loading. Similarly, the first 11 pages have at least a 50% markup. This type of loading is common practice across Australian news publications. Now let’s say we wanted to place a small page strip ad in The Courier Mail on a weekday, on page 3 in EGN, the cost would be at least $4054.74.

The first few pages and back pages of other key sections of the paper, such as Business, also attract a higher loading. For The Courier Mail, the very back page attracts a 65% markup. You can see how the page position of an advertisement can have a substantial influence on the price.

#6 Left Hand Side VS Right Hand Side

The next factor is also related to position of the ad, but relates to which side of an open newspaper the ad appears in. You might be surprised to know that, in some publications, an ad that appears on the right hand side of an open paper, will cost more than one that appears on the left hand side. This is to do with the way readers actually read a newspaper, and where their attention is focused. This factor may also be tied to the page position of an ad, and which section it appears in. For example, in The Courier Mail, for ads on pages 12 to 21, a right-hand side ad costs 5% more than a left-hand side ad.

#7 Colour VS Black and White

Another factor that substantially affects the price of a newspaper advertisement, is whether the ad features colour, and how many colours. Colour ads are more expensive than monochrome or black and white ads. Some newspapers may distinguish between multi-colour advertisements and those that only feature one added colour (called “spot colour”). For example, The Courier Mail charges 30% more for multi-colour display ads, and 20% more for ‘spot’ colour display ads. Remember, that this is combined with any positional loading.

So let’s say we wanted our small page strip ad in full colour in The Courier Mail on a weekday, on page 3, that would be calculated as: $2457.42 + 30% colour loading = $3194.65 + 65% positional loading for page 3 = $5271.17

You can see here how the cost of our ad has more than doubled after we’ve factored in the colour, and position of the ad.

#8 Annual Spend/Expenditure Commitment

Now here’s a factor that also affects the price of your newspaper ad, but this time it’s a decrease, with a catch, of course. If you have the budget, and are prepared to commit to spending a certain amount annually, usually by entering into a 12 month contract, then you may be entitled to a discount. However, the discount depends on how much you’re prepared to spend. For example, to qualify for a 4% discount on The Courier Mail’s advertising rates, you need to spend at least $38500 per year. If you’re a small business owner, chances are you’re not working with this kind of budget, so bye-bye discount.

Just in case you’re curious, businesses that annually spend at least $2.3 million with the Courier Mail, receive a 13% discount. In my opinion, this form of discounting simply highlights how biased mainstream advertising is towards big business. Where’s the discount for all the struggling small businesses? But that’s another story.

Summary:

To sum up, those 8 factors again, and how they’ll affect the cost of your ad:

  • type of ad – display VS classifieds VS inserts – rates based on different measurement units
  • size – pay more for bigger ads
  • day of the week – weekends are more expensive
  • section or lift-out – early general news (EGN) is more expensive
  • page position within a section – front pages and back pages cost more
  • left hand side VS right hand side – RHS is dearer
  • colour VS black and white – pay more for full colour
  • annual spend/expenditure commitment – get a discount if you spend up big

Now that you know what affects the price of a newspaper advertisement, you’re better prepared to decide where and how you want to spend your advertising dollar. If newspaper advertising seems beyond your budget, then it might be worth considering more cost-effective alternatives, such as online advertising.

A Proven Method to Cut Advertising and Marketing Costs and Increase Sales Revenue

When it comes to advertising your business, you have an unlimited number of choices: newspapers, yellow pages, online, in magazines, through direct mail, on television, on the radio, etc. As the marketing director for a national company, I receive countless advertising solicitations each week. Like you, I want the best return on my investment. I want to reach my target audience, for the lowest price possible, and be rewarded with a significant increase in my sales revenue. Here is, by far, the most cost effective way to accomplish this goal: an LED sign.

Now, you might be thinking that a sign is a big investment. Aren’t we in a recession? Why should you make a big investment during a recession? The answer is simple. The US Small Business Administration has done the research for you.   They report:  

“Businesses who added an outdoor LED sign enjoyed typical sales increases of 15% – 150%. Not only does an LED Display produce a great return on investment, it costs very little compared to other types of advertising. With an LED sign, the average cost to achieve 1000 impressions (CPT) on consumers as they pass your business is less than 10% of the cost to reach them using any other marketing medium, including TV, radio or newspaper.”   That’s right. They are saying that if you begin using an LED sign to advertise your business, you can reduce your advertising costs to less than 10% of what you are paying for traditional mediums, and increase your sales by 15% to 150%! Does this sound too good to be true?   

Sonic Restaurants across the United States have been installing LED signs. A Sonic Managing Partner reports, “Since my LED sign was installed, my night time business has increased about 20%.”  

It isn’t just big businesses that are reaping the rewards. Pastor Fred Garmon of Harvest Temple Church of God purchased an LED sign for his church. He was “paying between $250-400 per month in newspaper ads. With our sign, we do not even use the newspaper anymore…which saves us money…” Churches see an increase in visitors when using LED signs, just as businesses see an increase in customers.  

If a proven method of slashing you marketing costs and increasing your sales revenue has not caused you to leave this article to search out an LED supplier and get your own LED sign ordered, there are other benefits.

  • With an LED sign, you own the media and you control the content. With traditional advertising, you have to pay each time you run an ad. If you have a change or a new product to promote, you have to wait for the next issue to come out. With an LED Display, you are in control. You can change the message as often as you like. You don’t have to wait to advertise your special offers and there is no cost involved. 
  • The US Small Business Administration reports that approximately 85% of a company’s customers live or work within 5 miles of the business location. These are the people who are passing by each day. An LED sign allows you to reach 100% of these potential customers. Moving messages capture people’s attention. In fact, LED signs often become community landmarks. The owner of Dairy Queen in Nocona, Texas says that “I cannot go anywhere in town that someone does not stop me and make a positive comment about my sign.” The bottom line: Everyone who drives by will notice your messages advertising and promoting your business.  
  • LED signs provide immediate results. LED sign owners report that the signs have an immediate and significant impact on their sales. Warren Croft, Owner of Croft Lumber Company in Sayre, PA, purchased an LED sign for his business. The sign was featured in the local Sayre Times newspaper and when interviewed, Mr. Croft told this story: “Five minutes after the sign went up, a customer came in looking for an items we had advertised on the sign. He didn’t know we sold it. He drove by on his way home, saw it on the sign, turned around and came in and bought it.”  

There may be a recession going on out there. It may also be a good time to invest in your business. Many LED suppliers offer easy lease options. Buyers experience the immediate benefits of LED sign ownership and the essentially pays for itself.

Reducing Operating Costs for Your Startup Is Essential for Longevity

Cash flow management is already a challenge for startups, but COVID-19 is not making matters better. With unemployment rising and people spending less money on certain goods or services, startups are likely to suffer during this time. However, reducing operating expenses can help a startup stay afloat until operations are back to normal.

Reducing overall operating costs can certainly impact your bottom line, especially as the impact of COVID-19 is felt. Also, reevaluating the budget and allocating funds to different operations can keep essential parts of your business going. Keep reading to learn more about how to reduce the operating expenses for your startup while staying productive during COVID-19.

Review your budget with a new lens

When you created your budget for the year, the coronavirus was not likely to be on your mind. And, with updates and changes happening so fast over the last several months, 2020 can feel like one big game of catchup. Now that shelter-in-place ordinances are lifting and people are venturing back out into the world, it is a good time to reevaluate your operating budget.

Revenue projections are likely in need of an update, and your outlook for 2021 is different now than it was a few months ago. From lower sales numbers to higher churn rates, the priorities of your budget need to be evaluated. However, it is important to avoid simply slashing your budget. Wisely evaluating the numbers may indicate that some areas of your business are actually improving during this time.

Renegotiate contracts

The impact of COVID-19 is being felt across the country. If your business has shifted, it is likely that others connected to you have done the same. You may be able to renegotiate terms or contracts during this time to give yourself some breathing room. From reducing office costs to eliminating subscriptions, there are some measures you can take to prevent waste.

Office Space

If your company has shifted to remote work, you are likely paying for empty office space. Your landlord may be willing to negotiate your terms due to the unprecedented circumstances. In some cases, shelter-in-place orders may prohibit you from working in the office altogether. Review your contract to see if there are any provisions for a situation when the office space is not usable.

Subscriptions

Your startup likely has multiple active subscriptions. Whether you rely on monthly professional services, like IT support, or SaaS licenses to run your business, there might be some room for cuts. Try negotiating with your partners or vendors to reduce subscription costs. You may have licenses that you are no longer using or termination fees that can be renegotiated.

Deferred Payments

In cases where you cannot reduce operating costs in numbers, ask for deferred payments. Lengthening the payment cycle can improve your cash flow temporarily and get you through a rough patch.

Eliminate nonessential tools

When you reevaluate your budget, you may find that it is skewed in one area. Go line by line to review the various tools and services used by your business, determine which are essential and which items can be cut. Reviewing financial statements is a great way to visualize where your budget is going, instead of assuming. You may have duplicate tools, tools that are no longer in use, or items that can be replaced with a less expensive alternative.

Cut Unnecessary Licenses

Reviewing all the tools and services used by your team could also highlight which services have too many licenses. Are all licenses being used, or can some be eliminated? Also, you may be paying for additional functions that you could go without, at least for the time being. Dropping your subscription tier or reducing the number of licenses could help lower operating costs.

Cut Out Paper

While it may seem small, going paperless can help your bottom line. Businesses spend quite a bit on paper, printers, and ink every year. If your team is working remote, there is even less reason to use paper. When you return to the office, you can continue the habits formed during quarantine to reduce the overall paper usage of your business.

Stay flexible

Things are likely to continue changing as we learn more about COVID-19 and its overall impact. There may be unlikely opportunities to reduce your operating expenses over time. The unpredictability of COVID-19 combined with the changing nature of startups makes it important to stay on your toes. You may find yourself considering new or innovative ideas that you would not have previously thought of.

Evaluate More Frequently

Periodically evaluating your budget and outlook can help you stay more agile and flexible. As your startup changes and evolves, your operating costs need to follow. Set up more frequent evaluations to stay on top of your operating costs and adjust as needed.

Pause large investments or projects

For many startups, cash flow is limited. COVID-19 is putting major purchases and projects on hold until businesses can stabilize. Instead of considering these pauses as losses, pay attention to the money you are saving and the cash you are making available.

New Equipment

Were you planning to upgrade everyone’s laptops this year or purchase a new phone system? COVID-19 may not be the right time to make major investments like purchasing new equipment. Instead, stick to only buying what is necessary. Look for refurbished or second-hand items when possible to save on operating costs.

Marketing Initiatives

Unless your marketing initiatives are seeing a positive ROI, it may be time to pause big projects. Instead of rolling out previously scheduled campaigns, reevaluate your marketing calendar to determine what will move the needle for your business. If your customers are pushing off on buying decisions, now might not be the time to invest in sales and marketing.

Utilize Free Trial Periods

If you absolutely must purchase a new service or equipment, take advantage of free trial periods. Ensure the vendor is the right partner for you by testing their product or service ahead of time. In some cases, vendors will negotiate on the trial period if you are serious about buying.

Reduce payroll

Finally, reducing payroll can help lower operating costs. Many startups see this as a last resort because it greatly impacts your operational capacity as well as the individual lives of employees. However, in some cases, it is a necessary measure.

Implement a Hiring Freeze

You can make steps towards reducing operational costs by implementing a hiring freeze. Avoid filling positions unless necessary. Your team may be stretched thin, but you can avoid eliminating current positions this way.

Contract Out

Instead of hiring for new positions, contract out when possible. For example, you may need financial guidance during COVID-19. You can contract with a freelance CFO to work part-time at a lower cost than hiring an executive-level position. Firms like K-38 Consulting provide services from top-notch financial advisors, and you only pay for services when you need them.

IT Outsourcing, Philippines – Helping Companies Cut Costs And Enhance Productivity

In the old times, most businesses used to conduct all their major functions through an in-house department or service provider. However, with the recession hurting the pockets of many corporations and medium-sized firms, many have begun transferring some of their “non-core” functions to third-party providers. Today, the concept of outsourcing has spread like wildfire among companies in the developed world; hence the birth of the term BPO, or business process outsourcing. Here’s a quick look at how outsourcing can help a company cut costs, and increase productivity at the same time.

The Benefits of Outsourcing

Business process outsourcing offers a wide array of benefits to overseas companies. It allows them to transfer some of their non-core company processes to external providers, who are often referred to as BPO firms. Many companies based in countries like the US, Canada, Australia and Europe have now outsourced a number of their core and none-core operations to countries like India, the Philippines and China, where labor costs are low, and there’s a large supply of talent. These countries are known for providing, and maintaining, good-quality output, and are preferred because they easily conform to strict international standards.

The Services Offered By BPO Companies

Business processing outsourcing firms offer a wide array of services. They provide software development, animation and content development, technical support and customer service, medical and legal transcription, finance, logistics, accounting, account management, accounts receivable collection, insurance claims processing, engineering and design, payroll processing, human resource, financial analysis and auditing, data processing and other essential back-office functions.

IT Outsourcing Philippines – The Advantages And Perks

The Philippines ranks high when it comes to the realm of business process outsourcing. The country currently ranks in the top 3 preferred global outsourcing destinations, which include India, China and others. The company consistently ranks as a favorite outsourcing destination because it has a large volume of English speakers, and it also churns out a large number of college graduates annually, who are proficient in information technology, business, accounting, and other skills. The country also is also seen as a better alternative to India because it offers more affordable operational costs.

Outsource Philippines has steadfastly clung to its reputation as one of the top business process outsourcing destinations in the planet. The country’s BPO industry has risen by 46 percent yearly, and the boom is mostly driven by the establishment of offshore call centers. According to the country’s Board of Investments, the BPO output for 2008 alone was a whopping $6.1 billion. In 2009, the nation’s BPO sector was forecasted to rake in from $7.2 to $7.5 billion in revenues. The IT outsourcing Philippines sector is expected to earn as much as $11 to $13 billion in 2010, and employ an additional 900,000 people.

To sustain the growth of the Philippine outsourcing industry, the government has offered a wide variety of fiscal and non-fiscal incentives to attract more foreign direct investments. The Board of Investments has also drafted an Investment Priority Plan, which focuses on the further development of the BPO sector, and other major industries.

Candy Wrapper Software – Work at Home Business Ideas With Low Start Up Costs

The most appealing home based business ideas are those that do not require a lot of money and equipment up front. The candy wrapper business is a prime candidate for work at home moms and dads wanting to start a new business for just a few dollars.

All you need to get started is candy wrapper software, which costs around $38. You also need a printer, printer paper, scissors, adhesive, and your creativity.

A great way to get started is to start marketing to organizations and businesses in your local area. These include schools, churches, non-profit organizations, gift basket companies, florists, and any other business that will benefit from personalized promotional items.

Having a website is a good idea so you can sell your candy wrappers, promotional items, and party favors online. Make sure all your friends know you are in the business, especially those with young children and those that have their own businesses and can benefit from customized promotional products.

Those with young kids are prime potential candidates for birthday party favors. Candy wrappers are also great for company picnics, retirement parties, anniversary parties, graduations, bridal and baby showers, weddings, fundraising activities, hospitals, gift shops, business marketing, and the list goes on.

This business does not require any formal training. You do not need to attend any special courses to succeed in this business. The candy wrapper software you purchase should include plenty of templates and graphics.

The package you use should also allow you the flexibility to use your own graphics and images. Part of what makes this business so easy to promote is you have the ability to make wrappers that contain personalized images.

Imagine a child’s delight at his birthday party when he discovers the candy wrappers are decorated with his own picture.

Wrappers are not just for candy, either. You can make wrappers for just about anything you can imagine, including gallon or quart sized paint cans, candles, DVD’s and CD’s, wine bottles, water bottles, bubble containers, and more.

When you first get started, make some samples you can show potential customers. You can also photograph the samples and post the images on your website. Start out with some sample handouts, making sure you have your contact information on the wrappers.

Print up some business cards, brochures, and flyers you can hand out as well. Pretty soon, your business will promote itself by word of mouth once the news gets out about your new candy wrapper business.

For a very low investment, you can get your candy wrapper software and start your business right away. This is a great home business opportunity that allows you the flexibility to work easily during your chosen hours and have time for your family as well.

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