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What happens when hospital CEOs decide to switch hats and become purchasers of health care rather than merely providers? As employee health benefits costs continue to climb, hospital executives will be compelled to make some difficult decisions. Some benefits consultants say that in order to effectively curb costs, they will have to move from using traditional cost-containment measures to offering managed care. Hospitals may also tap into options such as encouraging use of their own facilities and promoting employee wellness.

Hospital expenses increased 12.7 percent in September 1979 compared to September 1978, bringing the 1979 year-to-date increase to 13.1 percent. The comparable increases last year were 12.5 percent in the month of September and 12.8 percent for the year-to-date. While the accelerated rates of growth continue to reflect inflationary pressures in the general economy and increased utilization, September 1979 showed the smallest rate of increase in total hospital expenses since March 1979, attesting to efforts by hospital management to contain labor and supply costs.