H.R. Versus Finance: Who Controls Corporate Health Care Decisions and does it Matter?

The past two decades have witnessed a transformation in the corporate human resource (HR) function – moving away from a role of balancing multiple interests toward a narrower focus on business objectives – yet we know little about how this change occurred. This study finds that the functional backgrounds of senior HR managers played an important role in determining the changing health benefits of large corporations. Managers with finance backgrounds controlled costs more than those with traditional HR backgrounds and contracted with fewer health plans – yet surprisingly without measured differences in health care quality management. These results suggest that more attention should be paid to the backgrounds of managers in the wider evolution of HR.