“Successful Workplace Wellness Program Case Study: Healthy University” Keith Edic Director Wellness Services

Why Employee Wellness? The total cost of obesity to U.S. employers is $13 billion per year1 Obese Americans spend about 36 percent more on health services and 77 percent more on medications than people of healthy weight.  That’s more than heavy smokers or heavy drinkers2 Workplace alcohol, tobacco, and other drug use costs over $100 billion each year3 Workers’ compensation costs for a smoker averages $2,189 compared to only $176 for a nonsmoker4 Job stress is estimated to cost $200 to $300 billion annually in absenteeism, tardiness, and lost productivity5 1 Cost Benefit Analysis and Report 1979-2001, Univ. of Michigan Health Management Research Center Rand Corporation, 2004 2 Six Reasons Why Health Promotion Makes Sense, Welcoa, 2002 3 Six Reasons Why Health Promotion Makes Sense, Welcoa, 2002 4 Cost Benefit Analysis and Report 1979-2001, Univ. of Michigan Health Management Research Ctr. 5 July 2001, Journal of Occupational and Environmental Medicine

HELP! Photography by Brian Luke Seaward, Ph.D.

Every year your employees will: 69% of employees will get a cold, flu and/or other respiratory infection 30% will sustain a minor injury 24% will have a non-respiratory infection 12% will have a digestive disorder

Emergency Department Visits 1.23 million ED visits in 2008 83 million test (x-rays, MRI, CT Scans, etc) Typical cost per visit: $1,265 (2008) 30% of all ED visits are unnecessary

Physician Visits 1.2 billion visits in 2007 Average cost: $120 (2003) 7 in10 visits result in at least one prescription- 2.7 billion overall. 30% of all Physician visits are unnecessary

Employee Wellness Programs Can Help! Valley Health: Employee Wellness Results

2010 Healthy U Summary Increased VH employee participation from 24% to 31% Over 19,000 Health Coaching contacts (face to face, phone, or email) Over 170 referrals to physicians, diabetes management, fitness centers, and nutritional counseling. Reduction in biometrics from 2009-2010: BMI 3% Weight 2% Cholesterol 1% LDL 4% Triglycerides 10% Glucose 2% Jan 2011 82% of participants chose the new Wellness Bucks incentive as their reward!

Valley Health Insurance Claims

All VHS Insurance Total Per Member Per Month Cost

VHS Health Care Cost Trend Differential

VHS Shift in Multiple Health Risk Prevalence Average annual cost: 0-2 Risk Factors $2,199 3-4 Risk Factors $3,460 5+ Risk Factors $5,520 Moving a single employee with 5+ RF to 0-2 RF = $3,321 in savings In 2010 Health Risk Prevalence shift savings = $60,365

VHS Weight Reduction and Tobacco Cessation Studies show moving one person’s BMI from >30 to < 29 nets a $1,400 cost savings. $15,400 in savings in 2010 Having one employee quit smoking nets a cost savings of $3,391. $30,519 in savings in 2010 BMI = 11 HU participants meeting that particular criteria Tobacco = 9 HU participants quitting

VH Employee Sick Leave Differential Collected actual sick leave hours used in 2008-2010. Initially separated data into 2 groups: Healthy U Participants (HUP) Non Healthy U Participants (non HUP) Utilized VH badge numbers to match Healthy U participants.

VH Employee Sick Leave Differential “Well, you just have healthier employees in Healthy U so the numbers should be lower. Right?”

VH Non Healthy U 21% Reduction = $451 High Risk Moderate Risk Low Risk

Healthy U Participant Sick Leave Differential Savings Cost if not in HU Actual HUP Cost 2008 $ 419,468 $ 156,468 2009 $1,789,647 $ 797,837 2010 $2,944,927 $1,484,675 $5,154,042 $2,438,979 Total savings over 3 years in sick leave hours: $2,715,063

Valley Health Systems – 2010 Health Care Cost Savings Health Care Cost Trend Differential $2,794,129 Differential of VHS cost vs. national average (Milliman Index) IF VHS incurred same rate as benchmark (7.8% vs. actual -1.6%) = would result in another $2.7 Million spent VHS cost with -1.6% increase - $29,151,143 Milliman Index 2010 cost increase of 7.8% - $31,945,272 VHS cost differential $31,945,272 - $29,151,143 = $2,794,129 Shift in Multiple Health Risk Prevalence $60,365 Positive shift in number of employees with 01, 2-3, 4+ risk factors minus negative shift in risk factors 0-2 Risk Factors = average cost $2,199 (18 from 3-4 RF and 7 from 5+ RF) 3-4 Risk Factors = average cost $3,460 (7 from 5+ RF) 5+ Risk Factors = average cost $5,520 (Edington, D, Emerging research, AJHP, 2001 Volume 15:5 pg. 341-349) Weight Reduction $15,400 (moving from BMI of >30 to < 29) $1,400 x 11 (24 reduced -13 gained) Tobacco Cessation $30,519 (6 months or longer tobacco free) $3,391 x 9 employees (2 tobacco cessation and 7 Healthy U) (Indiana Tobacco Quitline) Healthy U Participant Sick Leave Differential $1,460,252 Healthy U participants (HUP) cost vs. Non Healthy U participants (NHUP) cost IF HUP incurred same cost as NHUP = would result in another $1.46 Million spent HUP cost - $1,484,675 - NHUP cost - $2,944,927 HUP cost differential $2,944,927 - $1,484,675 = $1,460,252 (VH actual sick leave usage in 2010) Total Cost Avoidance $4,360,665 Total Cost of Wellness Services in 2010 $593,209 Total Return on Investment ($3,767,456 savings) 7.35 to 1

What is the next step for Employee Wellness Programs?

Employee Wellness Next Steps Medical Self-Care (WELCOA) Currently less than 10% of companies Personal Health Records (WELCOA) 95% of diagnosis is based on medical history (Association for American Physicians and Surgeons) Primary Care Physician Limit unnecessary visits to the ED

Questions?

Thank you!