Glaxo Wellcome Canada Inc. Improving the Bottom Line by Adopting a Strategic Health Focus Monday November 1, 1999 Monique Finley, Glaxo Wellcome Ottawa OHNA

Glaxo Wellcome Canada Inc. Nature of the Problem New Technology - Capital - Pharmaceutical - Procedures Demographic Shifts Government Policy Unfunded Liability Increasing Costs/Liability

Glaxo Wellcome Canada Inc. Advantages of a Long Term Focus Long term benefits through strategic management Time One time savings through cut Issue arises as cuts appear $

Glaxo Wellcome Canada Inc. Strategic Health Focus : Linkages in the Cost of Labour Employees working with Disease Employees absent due to Disease Medicines (Used Appropriately) Productivity Absenteeism Short Term Disability Long Term Disability Workers’ Compensation Education/ Occupational Health Education/ Occupational Health

Glaxo Wellcome Canada Inc. WSIB Example The Situation –only involves employees –work related injury/illness –costs cover employees –known and measurable productivity loss –can be improved upon within 1-2 years Plan of Attack –understand what those injuries and illnesses are –plan and/or hire someone to help fix them through l morale boosting, l ergonomic studies, l machine guarding l incentives

Glaxo Wellcome Canada Inc. WSIB vs Health Care The Situation –only involves employees –work related injury/illness –costs cover employees –known and measurable productivity loss –can be improved upon within 1-2 years The Health Situation -involves employees, spouse/dependent/retire es

Glaxo Wellcome Canada Inc. Workers’ Comp vs Health Care The Situation –only involves employees –work related injury/illness –costs cover employees –known and measurable productivity loss –can be improved upon within 1-2 years The Health Situation -involves employees, spouse/dependent/retire -covers ‘life’ related injury/illness

Glaxo Wellcome Canada Inc. Workers’ Comp vs Health Care The Situation –only involves employees –work related injury/illness –costs cover employees –known and measurable productivity loss –can be improved upon within 1-2 years The Health Situation -involves employees, spouse/dependent/retire -covers ‘life’ related injuries/illness -costs cover employees spouse/dependent/retire

Glaxo Wellcome Canada Inc. Workers’ Comp vs Health Care The Situation –only involves employees –work related injury/illness –costs cover employees –known and measurable productivity loss –can be improved upon within 1-2 years The Health Situation -involves employees, spouse/dependent/retire -covers ‘life’ related injuries/illness -costs cover employees spouse/dependent/retire -costs due to productivity loss are hidden

Glaxo Wellcome Canada Inc. Workers’ Comp vs Health Care The Situation –only involves employees –work related injury/illness –costs cover employees –known and measurable productivity loss –can be improved upon within 1-2 years The Health Situation -involves employees, spouse/dependent/retire -covers ‘life’ related injuries/illness -costs cover employees spouse/dependent/retire -costs due to productivity loss are hidden -results 5-10 years out

Glaxo Wellcome Canada Inc. WSIB vs Health Care Plan of Attack –understand what those injuries and illnesses are –plan and/or hire someone to help fix them through l morale boosting, l ergonomic studies, l machine guarding l incentives Plan of Attack

Glaxo Wellcome Canada Inc. Opportunity Strategic View of Health: l Health management is a big envelope - component costs must be understood - where appropriate costs need to be seen as an investment l Private sector needs to influence evolution of system l A healthy workforce is a competitive advantage which requires investment guided by a long-term strategic plan: A healthy workforce = A “Healthy” Business

Glaxo Wellcome Canada Inc. GW’s View of the “Healthy” Business Canopy: Strategic Health Focus Pillars: Policies & Practices Foundation: Education & Intervention

Glaxo Wellcome Canada Inc. Communicating the Value of a Strategic Health Focus through: l Intuitively sound messages l Valid business case A Healthy Business: The Canopy - Strategic Health Focus Philosophy

Glaxo Wellcome Canada Inc. A Healthy Business: The Supporting Structure - Policies & Practices Communicating Policies and Practices that are Consistent with a Strategic Health Focus by: l Demonstrating the effects of corporate policies on health

Glaxo Wellcome Canada Inc. A Healthy Business: The Foundation Education & Intervention Working to Advance Knowledge and Provide Services to Support the Emerging Needs of the Marketplace through: l Provision of workable solutions:

Glaxo Wellcome Canada Inc. A Long Term Health Solution A Long Term Health Solution Þ How to Attack Employee Health Costs –identify your specific health cost drivers/issues l understand the issues and interrelationship between the components of health in your workplace –plan for the long term –work with stakeholders –educate and mobilize employees –Public/private sector linkages

Glaxo Wellcome Canada Inc. Overview: Health Analysis Identifying Health Issues - Three Views

Glaxo Wellcome Canada Inc. Strategic Health Management : Understanding Interrelationships l The Corporate information resource needs to include information on: –health costs in the workplace –health status of the workforce –the correlation between investment and return

Glaxo Wellcome Canada Inc. Strategic Health Management : Long Term Planning l All successful organizations manage their strategic assets over the long term l Success has not been tied to long term management of health in the past l The urgency to plan has been created by the increased dynamics of change

Glaxo Wellcome Canada Inc. Strategic Health Management : Working with Stakeholders l Canada has some of the best health resources in the world l Multi-stakeholder consortium is required internal and external members should be talking l Patients as stakeholders need to be involved l The pharmaceutical industry has in-depth knowledge of pharmaceutical technology

Glaxo Wellcome Canada Inc. Strategic Health Management : Education l Shift mentality of worker from “Entitlement” to “Ownership” l Focus on prevention and appropriate use of medication and other treatments l Behavioral change is fundamental to create an action orientation l Measure to the best of your ability

Glaxo Wellcome Canada Inc. INSPIRE: Canadian Health Awareness Program l Corporate employee health promotion and awareness program l Canadian Advisory Board development l Promotional materials, booklets, newsletters, presentations, surveys l Turn-key employee education modules l Supports both group and solo learning styles *

Glaxo Wellcome Canada Inc. Strategic Health Management : Stronger Private/Public Linkages l Public and private sector linkages need to be strengthened l Private sector consultation on public policy must increase l Incentives need to be given to the private sector

Glaxo Wellcome Canada Inc. Strategic Health Management : Understanding the Value of Medicine l Evidence based analysis on the value of medicines will reduce skepticism l New technology which contributes to the value of health needs to be fostered

Glaxo Wellcome Canada Inc. Strategic Health Management: Areas of Caution l Employee demand l Measurement of returns l Senior management buy-in –Selling your value and services vertically and throughout your work force

Glaxo Wellcome Canada Inc. Strategic Health Management l Questions l Concerns l Comments ?