Are You Covered?

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6 min read

This story appears in the October 1996 issue of Business Start-Ups magazine. Subscribe »

About the last thing business travelers think to plan for is coverage by their health maintenance organization (HMO) should they require emergency medical care on the road. Yet experts warn this is just as essential as remembering to pack your toothbrush.

While your HMO prescribes how to obtain health care at home, when traveling, "you don't know much about the reputation of hospitals," says Dr. Gregory Henry, president of the American College of Emergency Physicians in Dallas. "To some extent, you're at the mercy of what's available as to where you're going to get health care."

But take heart: There are ways to ensure proper health coverage when away. For starters, call your HMO to see if you have a preferred provider in the area where you're traveling, says Henry. Also, ask your HMO about the steps required for emergency care while traveling; your insurer may waive copays or certain provisions.

Should you happen to need medical care, don't forget to bring your HMO card to the hospital (a colleague or family member should also be notified where you keep the information beforehand). Once there, Henry recommends asking a colleague, family member or friend to notify your HMO. Your first priority is to receive proper medical care, not work out the fine details with your insurer. It's also a good idea to get a copy of the medical chart and any bills in case you need the documentation later when working out the bill.

No-Show Blues

You may already have unwittingly discovered the latest trend in the travel industry: penalty fees. Lately, a number of hotels have instituted early checkout charges for guests who cut their visits short. And some restaurants are testing fees for no-shows, too.

Why the onslaught of penalty fees? "When a room goes unused because someone decides to switch hotels or leave early, hotels lose money," explains Robert Nozar, editor of Hotel & Motel Management magazine.

Likewise, when tables sit empty because of no-shows, restaurants--particularly the pricier establishments--shoulder sizable revenue losses, says Wendy Webster of the National Restaurant Association.

Some businesses are choosing to recover a portion of their losses by levying penalty fees. For example, the Wyndham Anatole Hotel in Dallas recently instigated a $50 fee for guests checking out early. The Loews hotel chain is testing penalty fees for early checkout at three of its properties. And American Express just completed a six-month pilot program in which 30 restaurants were allowed to charge a no-show penalty for patrons using their American Express cards to hold reservations. (The fees, ranging from $10 to $25, were determined by restaurant owners.)

Despite their surge in popularity, though, some industry insiders insist penalty fees won't become commonplace. But in the end, there's only one sure way to avoid the fines: Travel responsibly.

Power Source

In a small company, entrepreneurs often adopt the role of chief technologist. Many reason it's just another hat they have to wear. Or is it? Increasingly, small businesses in numerous industries--from manufacturing and communications to insurance and retail--are outsourcing their computer needs.

Because much of information technology simply isn't a core operation for most companies, outsourcing can be an attractive alternative. It takes the burden of handling certain technology functions off personnel, allowing them to focus on other responsibilities.

Outsourcing relationships vary widely. Companies can outsource specific tasks, portions of information technology needs, or all their computer services.

"The pace of technology changes is overwhelming," explains Allie Young, senior analyst with Dataquest, a research firm in Westborough, Massachusetts. "To be competitive, companies must [upgrade their] technology, but they don't have the expertise in-house, so it's easier for them to turn to an expert."

But outsourcing can do more than relieve the burden on you and your staff. Many experts see value in partnering with larger companies that possess a track record. "The small companies that realize they need something today and want to grow in the future can bring in the leverage of a large company to help expand and grow [their] services," says Kathy Dodsworth-Rugani of Integrated Systems Solutions Corp. (ISSC), an IBM subsidiary in Somers, New York, that began offering its computer expertise to medium-sized and small businesses last December.

Internet site construction and management, computer training and new application development are just some of the duties small companies can relinquish to outsiders. ISSC, for example, provides remote operational support for company servers, help-desk support for employee questions, consulting expertise, and help with transferring between different operating systems, among other things. "Outsourcing these kinds of functions is particularly good for companies that can't get access to skills or find the talent pool [in their area] is diminishing," says Dodsworth-Rugani.

On the downside, while some entrepreneurs believe outsourcing can cut costs, experts say that's a myth. "It's unlikely you'll see a cost savings," admits Dodsworth-Rugani. "What you will see is an improvement in service, better use of technology, and a potential to do something different in the marketplace."

And, in the long run, that can boost your bottom line. No wonder, then, that industry insiders urge even the smallest of companies to consider outsourcing their information technology. Says Young, "This trend is absolutely growing for small business."

Basic Training

In a rush to put new software applications to use? Don't sign your employees up for expensive software training courses just yet. A recent study found that users often find other training methods more effective.

In fact, allowing users time to experiment and "play" with new software programs on their own is the most useful training method, according to a 1995 survey conducted by Candice G. Harp, a training and development consultant in Atlanta. Consistency within a program, asking co-workers for assistance, and reading the program's on-screen prompts and messages while working with the software were also cited as highly beneficial by respondents.

Among those training strategies deemed least useful? Attending a formal training seminar on the software package, watching lectures and demonstrations on videotape, following computer-based training courses, and calling the in-house help desk with a question.

Contact Sources

Dataquest, 9 Technology Dr., Westborough, MA 01581, (508) 871-5555;

Candice Harp, c/o Absolute Advantage, Research Group, 5305 Silver Creek Dr., Atlanta, GA 30247, (770) 921-9421;

Integrated Systems Solutions Corp., (800) USE-ISSC,

The Adolphus Hotel, 1321 Commerce St., Dallas, TX 75202, (800) 221-9083, (214) 742-8200;

American Airlines, (800) AACCESS,

American Express, (800) 4-OPTIMA;

China Airlines, (800) 227-5118;

Delta Air Lines, (800) 323-2323;

The Diplomat, 1503 Woodacre Dr., McLean, VA 22101, (800) 237-1631;

Hotel & Motel Management, 7500 Old Oak Blvd., Cleveland, OH 44130, (216) 891-2797;

Hotel Inter-Continental New York, (800) 327-0200, (212) 755-5900;

Loews Hotels, (800) 23-LOEWS;

Runzheimer International, (414) 767-2200;

United Airlines, (800) 241-6522;

Wyndham Anatole Hotel, 2201 Stemmons Fwy., Dallas, TX 75207, (214) 748-1200.

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