SI Review: September 2012

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You Ask/We Answer

Who Will Pay?

It’s unclear who will bear healthcare reform costs

Question: Who’s going to pay for healthcare reform

Answer: The answer to this is not cut and dry. According to our Buyer Survey, customers expect that staffing firms will absorb most of the costs; however, according to our staffing firms survey, staffing agencies expect buyers to absorb most of the costs. So it will all come down to negotiation.

If buyers of staffing services want something badly enough, they will be willing to pay the price. But if buyers have reasonable alternatives, then some of the costs will get passed on to the staffing firm or maybe even the workers. In the end, as in any negotiation, it’s about what economists call “elasticity of supply and demand.” Those with the most elasticity — i.e. willingness to budge — will bear most of the cost.

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