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Health Management as a Serious Health and Productivity Strategy Proof of Concept (Necessary and Sufficient) 1. Improve Health Status.

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Presentation on theme: "Health Management as a Serious Health and Productivity Strategy Proof of Concept (Necessary and Sufficient) 1. Improve Health Status."— Presentation transcript:

1 Health Management as a Serious Health and Productivity Strategy Proof of Concept (Necessary and Sufficient) 1. Improve Health Status (beat the Natural Flow) 2. Reduce Healthcare Cost (beat the Natural Flow) 3. Reduce Productivity Loss (beat the Natural Flow) 4. Improve Overall Trends for all Outcomes We need Champion Companies!!!!

2 Company XYZ Health Status (2005-2006)
N= 5,779 HRA participants in 2005 N=17,494 HRA participants in 2006

3 Company XYZ Risk Transitions 2004 – 2006
540 (54.9%) 3,008 (79.7%) 665 (40.9%) High Risk (5+ risks) Low Risk (0 - 2 risks) Medium Risk (3 - 4 risks) 1,626 (25.5%) 983 (15.4%) 3,774 (59.1%) 113 (3.0%) 338 (20.8%) 653 (17.3%) 1,648 (25.8%) 991 (15.5%) 3,744 (58.7%) 330 (33.6%) 623 (38.3%) 113 (11.5%) Employees who participated HRA in both 2004 and 2006 (N=6,383)

4 Company XYZ Costs Transitions 2004 – 2005
978 (43.2%) 6,170 (73.3%) 2,551 (50.2%) High Cost ($5000+) Low Cost (<$1000) Medium Cost ($1000-$4999) 5,077 (32.2%) 2,263 (14.4%) 8,414 (53.4%) 524 (6.2%) 844 (16.6%) 1,720 (20.4%) 5,087 (32.3%) 2,346 (14.9%) 8,321 (52.8%) 815 (36.0%) 1,682 (33.1%) 469 (20.7%) N=15,754 Employees with medical plans for both 2004 and 2005 Costs are sum of medical and pharmacy in 2005 dollars

5 HRA participants vs. Non-participants
Company XYZ: HRA participants vs. Non-participants N=15,754 employees in and enrolled in medical and pharmacy plans for both 2004 and 2005.

6 Company XYZ Risk Transitions 2005 – 2006
150 (51.0%) 806 (83.4%) 210 (43.2%) High Risk (5+ risks) Low Risk (0 - 2 risks) Medium Risk (3 - 4 risks) 486 (27.8%) 294 (16.8%) 966 (55.3%) 21 (2.2%) 84 (17.3%) 139 (14.4%) 463 (26.5%) 255 (14.6%) 1,028 (58.9%) 114 (38.8%) 192 (39.5%) 30 (10.2%) Employees who were employed in and participated in 2 HRAs (N=1,746).

7 Short-Term Disability Patterns
Company XYZ Short-Term Disability Patterns N=145,819 full-year employees in 2005 N=166,670 full-year employees in 2006

8 Take Home Messages 1. We cannot sustain the economic consequences of the “Do Nothing” strategy. 2. We need to embrace “Total Population Management” as an effective healthcare strategy and to focus on the “Total Value of Health” as the bottom-line outcome measure. 3. We need to refocus the definition of health from “Absence of Disease to High Level Vitality.” 4. The business case for Health Management indicates that the important economic strategy is to “Keep the Healthy People Healthy” (“keep the low-risk people low-risk”). 5. An effective overall strategy starts with “A Clear Vision from the Leadership,” which is consistent with corporate objectives.

9 Take Home Messages 6. The challenge is to “Create the Vision, Market, Execute, Measure, and Make it Sustainable.” 7. We need to engage “Partners not Vendors,” including the health plans, benefit consultants, primary care physicians and pharmaceutical and health enhancement companies. 8. We need to get to “Full Engagement of the total workforce” in order to bend the trend lines and get to “Zero Trend” in each of the outcome measures. 9. The first step is, “Don’t Get Worse” and “Let’s Create Winners, One Step at a Time.” 10. Are we ready for the “Clear Vision from the Leadership,” to be translated as meaning Total Population Health Management as “Build A Corporate Culture of Vitality?”


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