The system needs some C-suite scruff grabbing.

• Author: Torinus, John, Jr.

From The Company That Solved Health Care by John Torinus Jr. Copyright 2010 by the author. Published by BenBella Books (www.benbellabooks.com).

I HATE THE PHRASE, but what's needed is a paradigm shift. CEOs and CFOs need to grab the non-system by the scruff of the neck and shake it up.

Jim Hagedorn, CEO of Scotts Miracle-Gro, a lawn care products company, did just that. In 2007, he got religion on managing health as a way of attacking health costs. He uses the big-stick and big-carrot approach. At Scotts, you either listen to your health coach or your premiums go up. Their carrot is a huge investment in employee health: a $4 million per year wellness program and a $5 million on-site fitness and medical center manned by two doctors, five nurses, a dietician, a counselor, and two physical therapists.

At Serigraph, I am heavily engaged in the promotion of health and the reduction of health costs. Many of our managers are fitness buffs, and we have played them up as positive examples in company...