Demonstrating Your Wellness Success Story It s More than Mere ROI

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1 Download this presentation at Demonstrating Your Wellness Success Story It s More than Mere ROI March 24, 2015 The content in this webinar is provided for informational purposes only and is not intended to be construed as legal or HR advice.

2 Alere Health Coaching & Wellness Tobacco Cessation Condition Management Case Management Women s & Children s Health 287, M+ 11, M 48% 77% INDIVIDUALS WITH HEART FAILURE UNDERSTANDING IMPORTENCE OF RX ADHERENCE INDIVIDUALS WITH ASTHMA & COPD BREATHING EASIER INDIVIDUALS WITH CAD KEPT OUT OF HOSPITAL INDIVIDUALS WITH DIABETES MANAGE THEIR CONDITION OF INDIVIDUALS ARE SUCCESSFUL IN QUITTING SMOKING OF INDIVIDUALS ARE ABLE TO LOSE WEIGHT At Alere, it s more than clinical, it s personal. We support each person in realizing their individual version of health and wellbeing to nourish life.

3 Our Presenters Hamilton Mears, PT, MTC, FABC Wellness Plan Administrator, Scripps Health Hamilton Mears is the brains behind the award-winning wellness program at Scripps Health in San Diego. Since the inception of the program in 2006, Scripps has been recognized repeatedly as one of Fortune Magazine s Top 100 Great Places to Work organizations, is an employer of choice for the AARP, and has earned top honors from Working Mother Magazine. Hamilton s degrees in biology, physical education, and physical therapy give him the knowledge and insight to discern what makes an employee wellness program successful. Michael Connor, DrPH, MPH, MBA Senior Vice President, Customer Analytics, Alere Health, LLC Dr. Michael Connor relies on his extensive education in the field of public health and 34 years of experience in health care analytics to report program value to Alere s customers. His focus on outcome measurement, illness burden scores, and health care cost trend analysis allow us to demonstrate the true value of Alere s corporate wellness programs.

4 Hamilton Mears, PT, MTC, FABC Wellness Plan Administrator, Scripps Health

5 Scripps Health Not-for-profit, integrated health care system in San Diego, California 13,766 Employees 2,600 Physicians 4 Hospitals, 5 Campuses 2 Trauma Centers 37 Clinics 70/30 Female/Male Average age 47

6 Scripps Clinical Network Scripps Hospital Campuses (5) Scripps Clinic (13) Scripps Coastal Medical Center (13) ER s (4) & Urgent Care Centers (3) Scripps Home Health & Hospice (3) Affiliated Independent Physicians (2,600) Proton Beam Center

7 Scripps Work Scripps Wellness and Employee Care Centers Wellness Occupational Health & Safety Workers Compensation 5 on-site Employee Care Clinics 78% Participation 97% Satisfaction 26% Reduction in Ave. # Risk Factors per EE Website HRA & Biometric Screening Health Coaching Challenges Onsite Activities Fitness Classes, gyms Seminars Cooking Classes Healthy Food Options Champions Incentives

8 60% 50% Population Risk Reduction Up 19.8% 49.5% Down 16.8% 40% 30% 29.7% 37.9% 34.9% 32.4% 20% 15.6% 10% 0% Low Risk (0-2 RF) Moderate Risk (3-4 RF) High Risk (5+ RF) FY06 FY14

9 Change in Risk Factor Prevalence % 50% 40% 30% 20% 10% 0% FY06 FY14

10 Do Wellness Programs Really Control Costs? Three Models 1. Health Plan 2. Productivity 3. Costs Follow Risk

11 Participant vs. Non-participant Propensity matched; 664 participants, 8,869 controls (12 mos. Pre) (24 mos. Study Period) (8 mos. Post) Cost and Utilization Trend Differences Wellness Participants Compared to Non-participants Schaller Anderson, March Feb % Ave. # Prescriptions PMPM 3.4% MD Visits/ % ER Visits/ % Hospital Admits/ % Total Med+Rx Cost PMPM -8.6% Pharmacy Cost PMPM -33.1% Medical Cost PMPM -40% -30% -20% -10% 0% 10%

12 Productivity & Risk Change Absenteeism + Presenteeism Cohort, N = 2,491 HPQ; Annualized Cost per Employee $8,000 Low Risk Moderate Risk High Risk $6,000 $4,000 $6,255 Savings $2,000 $1,882 $2,082 $528 $457 $0 -$2,000 -$4,000 -$694 -$1,577 -$3,120 -$1,870

13 Medical and Pharmacy Costs by Risk Category (PMPY) Costs Follow Risks, UM-HMRC $16,000 $14,000 $12,000 $10,000 Source: Personal correspondence between Hamilton Mears and Dee W. Edington, PhD, Health Management Research Center, University of Michigan; pending publication. $8,913 $10,186 $11,778 $13,369 $8,000 $6,000 $4,000 $3,183 Edington, Zero Trends 2010 $4,456 $5,730 $7,321 $2,000 $0 Zero One Two Three Four Five Six Seven+

14 Cohort Risk Change (FY14 v. FY13) Change in Percent of People in Each Risk Category N = 7,601 15% 10% 5% 0% -5% Zero One Two Three Four Five Six Seven+ -10% -15% -20% -25% -30% Net Costs Avoided = $2.4 M

15 Medical & Pharmacy Costs (PMPM) Scripps Employee Health Plan $700 $600 $500 $ % $300 $200 $100 $ Actual Projected

16 Many Factors Other than Health Influence Healthcare Costs Economy Legislation Contracting Plan design Practice patterns Consumerism patterns Not easy way to predict or account for in ROI calculations

17 Expectations & Interpretations Myth Causality Precision Reductionist Incremental Reality Correlation Directional Interrelated Systemic Understand the common misconceptions that threaten your wellness value proposition.

18 Take a Different Approach Typical Measures Medical Costs Pharmacy Costs Work Comp Costs Absenteeism Presenteeism Satisfaction Recruitment & Retention When you get to the fork in the road, take it. Yogi Berra How do you demonstrate the full value of wellness when data is impacted by outside forces, often incomplete and seldom integrated?

19 Tell Your Wellness Story Differently I don t know what it is, but I know it when I see it Justice Potter Stewart U.S. Supreme Court 1964 Perception is Reality Understand perceptions Structure story 1. Why (needs addressed) 2. How (strategy) 3. What (structure, outcomes) Illustrate - testimonials 1. Relevant 2. Emotional impact Accurate data, valid analysis Framing Game Changer

20 Congruence. A Compelling Story Brad Ellis, Corporate VP and his Kettlebell Express Class Culture is a reflection of what is valued. Design the experience Grass-roots driven Champions at every level Equal measures of the expected and surprise Celebrate success Support strategy Make sure your wellness success story matches what people see, hear and feel..

21 Scripps Wellness Story Organization Provider of Choice Employer of Choice Practice Environment of Choice Physicians Better Supported Better Outcomes Recruit & Retain Reputation Philanthropy Satisfaction Referrals Loyalty Measurable Difference in Health Healthy, happy employees are the engine Mission Margin Market Share Employees Feel Valued, Respected Feel Better Physically Work Capacity Work Quality Work Efficiency Job Satisfaction Loyalty Patients Better Outcomes Better Experience Satisfaction Loyalty

22 Perspective From the Top A healthy workforce is a strategic imperative The value of wellness is multidimensional and can never be fully captured on a balance sheet The value is there, and nobody can convince me otherwise Chris Van Gorder President and CEO Scripps Health

23 Michael Connor, DrPH, MPH, MBA Senior Vice President, Customer Analytics, Alere Health, LLC

24 Why ROI is necessary but not sufficient? Considerations ROI VOI Market Adoption Broad Emerging Program Impact Financial Only All Relevant Value Domains Precision and Certainty Single Estimate Plausibility through multiple measures including Financial Methodology Diverse Certain Value Domains provide standardization

25 A Broader Value Proposition: HERO and PHA Measurement Initiatives Goal: Majority of Purchasers & Sellers of PHM solutions use validated measures to understand impact

26 Collaborators Endorsers

27 Collaborators Endorsers

28 HERO PHA Value on Investment Emphasize the entire range of value domains Allow purchasers to decide what is important and credible Express valuations in an intuitive and understandable manner Accommodate all types of EHM programs Domains Principles 28

29 Alere Value on Investment Cascade Organization Support Participation Satisfaction Health Impact Financial Outcomes Productivity and Performance 29

30 Executive Summary: Wellness Findings Sample Engagement 88% Engagement Rate in Year 1 by Incentive Eligible Employees Health Impact Top Health Risks Improvement: Blood Pressure, Weight, Nutrition Satisfaction Health Coaching Program Satisfaction = 94% Financial Savings $1,418,645 Estimated Healthcare and Productivity Savings by Controlling Excess Risks Organizational Support Strong $600 Incentives Drive Engagement 30

31 Additional Information and Resources Watch your for the replay and our latest white paper Health Management ROI: Is This All There is? Visit blog.alerewellbeing.com and sign up for our blog. We ll be running an ongoing series related to the Program Measurement and Evaluation Guide To learn more about Alere Health and how we can help you meet your workplace wellness challenges, visit 31

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33 Please take the survey that pops up in your browser after you exit GoToWebinar. The companies, websites, products and services, and brands referenced herein are not sponsored or endorsed by, or otherwise affiliated with, Alere Health, LLC or Scripps Health. All third-party brands and content are the property of their respective owners. Copyright 2015, Alere Health, LLC and Scripps Health 33