1. The Cost of Employee Health Benefits Continues to Increase at an Unsustainable Rate… It’s Time for a New Approach!

2. Need for Comprehensive Employee Health Management Program Health care reform Skyrocketing health care cost With health care reform and skyrocketing health care costs it’s imperative that organizations have a comprehensive employee health management program.

3. Researched and Interviewed Organizations That Offered Health Care Management Organizations Viverae – All web based and lacked personal care and no evidence of success CenVaNet - All web based and lacked personal care and no evidence of success University of Richmond representatives from Human Resources and Recreation and Wellness investigated and listened to presentations from several health management corporations to determine the best strategy to manage our employee health and wellness. Although we were impressed with the presentations, literature, and comprehensiveness of the programs, we were not as overwhelmed with their personal care and evidence of success.

4. Concluded Recreation and Wellness Could Offer Everything and More More personalized service Similar and comprehensive programs Funded at similar cost with re-allocated funds We concluded that with re-allocation of existing facilities and resources, and for similar cost, we could develop and implement a more personalized and comprehensive employee health management program that has the potential to become a national leader.

5. New Key Components of Recreation and Wellness Employee Wellness Program Assistant Director Wellness Employee Health Clinic Health Care Claims and Cost Data Mining Software Participant Incentive Program and Monitoring and Tracking System Health Advocate – Personal Touch Marketing and Communications with Focus on 85% of non-active participants. An Assistant Director of Wellness will oversee all current and new wellness programs, with specific responsibility for employee wellness and the employee health clinic. Primary responsibility will be to collaborate with Health Clinic staff to review of health care claims and cost data to assist in the design and implementation of campus-wide health and wellness initiatives targeting those areas of greatest need and concern to the organization.

6. Recreation and Wellness Current and Continuing Employee Wellness Programs Weinstein Center Membership Fitness Classes Working On Wellness (WOW) Wellness Special Events – Walking, Biggest Loser, etc All current employee wellness programs will continue to be offered and are anticipated to be expanded and approved as a result of this initiative. The Assistant Director will coordinate and oversee all employee wellness programs and will collaborate with other Recreation and Wellness staff they may have shared responsibilities for specific programs.

7. Funding Source Re-allocation Recommend discontinuation of tuition exchange program for Recreation and Wellness Fitness Instructional Programs. The funds used for tuition exchange can be re-allocated to continue offering the same programs using a different model. FIP Personal Training$46,663 FIP Massage Therapy$71,685 FIP Fitness Classes$122,835 Total FIP Tuition Remission Cost$241,183

8. Revised FIP Model Re-allocation of Funds Assistant Director Wellness –Salary, benefits, supplies $77,230 Wellness Programs –Currently FIP Subsidized $7,538 Participant Tracking/Incentives –Project cost to outsource $25,000 Revised FIP Program –Direct cost labor and support $131,415 Total Recommended Re-allocation of Funds $241,183

9. Revised FIP Model Same variety, quantity, and quality of programs Participants can participate in unlimited number of programs Participants can begin classes anytime during semester Participants will not need to register All fitness classes are free Nominal fee ($20) for Personal Trainers and Massages

10. Revise FIP Model to Discontinue Tuition Exchange For these reasons mentioned in the previous slides, regardless of what others changes are adopted and funds are re-allocated strongly recommend discontinuation of tuition exchange program for Recreation and Wellness Fitness Instructional Programs.

11. What this means for SCS Beginning in the fall of 2011, no tuition remission will be used for Fitness and Wellness programs. All classes offered will be free to all members, no registration and no payment necessary. This will allow members to take as many classes as they like and try different classes whenever they choose! There will no longer be the confusion between group-ex and FIP. A select few classes will still have spaces reserved for outside community participants through the Think Again model. All timelines and procedures for the non-credit offerings will be followed accordingly. This will provide an opportunity to continue collaboration between Recreation and Wellness and SCS.

12. Personal Training/Massage Tuition remission will not be used for Personal Training and Massage Therapy. Rather, these programs will be offered at significantly discounted rate and made available to members only. –Members who are faculty/staff and their dependants would have the opportunity to utilize personal training at an employee wellness discounted rate of $20/session. –Members who are faculty/staff and their dependants would have the opportunity to utilize massage therapy at an employee wellness discounted rate of $20/session. –All other Members would still use the current payment model.

13. Key Points This revision will allow us to continue to serve individuals outside our University while focusing on providing optimal offerings to our faculty and staff within. Fitness classes will not have to “make” no minimum registration amount required. SCS still receives 25% of gross revenue for registration in selected classes Eliminates confusion of what fitness classes are available for employees Promotes opportunities for increasing and varying fitness levels for employees.