Session 105 - Maximizing Health of the Workforce … 105 Maximizing the Health of the Workforce MY...

12
4/2/2014 1 CULTURE OF HEALTH: The Healthy Worker Advantage (c) ACOEM 2012 Sunday April 27, 2014 AOHC 2014 Session 105 Maximizing the Health of the Workforce MY BACKGROUND: A PATIENT, A PROVIDER, A PAYER, A PURCHASER, A VENDOR, A CONSULTANT, AN INFORMATIST Ray Fabius MD Co-founder & President HealthNEXT HISTORICAL PERSPECTIVE 3 Agenda What is a Culture of Health f How do you Build a Culture of Health Why do it – What is the Value to Organizations Emerging Technologies Learning Objectives Describe the core elements of a Culture of Health and master two methods to build one into their own company. Understand the relationship between health and productivity and be able to discuss the business case for building a culture fh lh ofhealth Explore the connection between health status and wealth generation Articulate steps required to effectively implement workplace health, wellness & safety programs Identify sources of data for understanding the true costs of health Learning Objectives Discuss the 3 types of prevention strategies Understand the components of the implementation plan Discuss the value of evaluating workplace health & wellness programs

Transcript of Session 105 - Maximizing Health of the Workforce … 105 Maximizing the Health of the Workforce MY...

4/2/2014

1

CULTURE OF HEALTH:The Healthy Worker Advantage

(c) ACOEM 2012

Sunday April 27, 2014AOHC 2014Session 105

Maximizing the Health of the Workforce

MY BACKGROUND: A PATIENT, A PROVIDER, A PAYER, A PURCHASER,  A VENDOR, A CONSULTANT, AN INFORMATIST

Ray Fabius MDCo-founder & President HealthNEXT

HISTORICAL PERSPECTIVE

3

Agenda 

• What is a Culture of Health 

f• How do you Build a Culture of Health 

• Why do it – What is the Value to Organizations 

• Emerging Technologies 

Learning Objectives

• Describe the core elements of a Culture of Health and master two methods to build one into their own company.

• Understand the relationship between health and productivity and be able to discuss the business case for building a culture f h l hof health 

• Explore the connection between health status and wealth generation 

• Articulate steps required to effectively implement workplace health, wellness & safety programs 

• Identify sources of data for understanding the true costs of health

Learning Objectives

• Discuss the 3 types of prevention strategies

• Understand the components of the implementation plan 

• Discuss the value of evaluating workplace health & wellness programs

4/2/2014

2

What is a Culture of Health?How Do You Build One?How Do You Build One? Why Is It Important?

What is a Culture of Health? 

• A process that documents a flat or decreasing medical cost trend and the elevation of the health status of the population or participants 

• A comprehensive approach that includes environmental cues, corporate or organizational structures and policies, data warehousing and analytics marketing anddata warehousing and analytics, marketing and communications, evidence based benefit design, and vendor management.  

• Addresses corporate competitiveness as a human asset investment versus a necessary cost to be reduced to the extent possible

A Healthy Workforce is a Competitive Advantage

How Do You Build a COH? 

• Methods have emerged

– ACOEM MethodologyMethodology 

– CAWG Roadmap 

• New Approaches 

– Comparison to Benchmark 

– Our Research 

STEP 1

STEP 2

COMPANY ASSESSMENT

DATA ANDMETRICS

ROADMAP FOR IMPLEMENTING WORKPLACE WELLNESS PROGRAMS

STEP 2

STEP 3

STEP 4

STEP 5

DATA AND METRICS

OPERATIONAL PLAN

INTERVENTIONS

EVALUATION & REFINEMENTS

Step 1

COMPANY ASSESSMENT

Ethical IssuesSelection Bias & Internal Threats

Senior Support &Communications

ExternalCollaborators

Internal Collaborators

Components  of a successful health and productivity program

• General Philosophy

• Organizational Structure

• Goals and Metrics

Company Assessment

• Interventions and Outcomes

• Integration and Trends

• Incentives

hpm.acoem.org

4/2/2014

3

Corporate Health Achievement Award (CHAA) Self‐Assessment developed to:

• Help organizations identify their strengths, weaknesses, and gaps 

• Encourage organizational self‐assessment and continuous improvement 

Company Assessment

p• Foster understanding of standards of excellence for workplace 

health, wellness and safety utilizing the CHAA criteria • Gain a better understanding of the award criteria and scoring 

www.chaa.org 

• Stakeholders

– Broad based company support

– Inclusion of managers in program development

• Must have a commitment to prevention and a culture of health rather than just more treatment and cure  ‐ (Loeppke, R. 

Senior Support and Communications

j pp

The Value of Health and the Power of Prevention IJWHM. 2008; 1 (2):95‐108)

• Align incentives among the key  stakeholders – to promote wellness, reduce risk, enhance health and improve quality of care for those that already have a medical condition (Loeppke and Hymel, 2006; Loeppke, 2002).

STEP 1

STEP 2

COMPANY ASSESSMENT

DATA ANDMETRICS

ROADMAP FOR IMPLEMENTING WORKPLACE WELLNESS PROGRAMS

STEP 2

STEP 3

STEP 4

STEP 5

DATA AND METRICS

OPERATIONAL PLAN

INTERVENTIONS

EVALUATION & REFINEMENTS

DATA AND METRICS

HealthM t i

ProductivityM t i

CURRENT MEASURABLE DATA NEW SURVEYS

Presenteeism

Step 2

HRAMetrics Metrics

Health Risks

PharmacyCosts

DiseasePrevalence

MedicalCosts

AbsenceOvertimeStaffing

Worker’sComp

Presenteeismsurvey

EmployeeNeeds Survey

Total Cost of Employee Health

Presenteeism

Health Costs:Medical & PharmacyProductivity

Costs:

AbsenteeismAbsenteeism

STD

LTD

McCunney, A Practical Approach to Occupational and Environmental Medicine, Lippincott  2003

WC

STEP 1

STEP 2

COMPANY ASSESSMENT

DATA ANDMETRICS

ROADMAP FOR IMPLEMENTING WORKPLACE WELLNESS PROGRAMS

STEP 2

STEP 3

STEP 4

STEP 5

DATA AND METRICS

OPERATIONAL PLAN

INTERVENTIONS

EVALUATION & REFINEMENTS

4/2/2014

4

OPERATIONAL PLAN

Step 3

Vision, MissionGoals & Objectives

Marketing/ CommPlan

Budget/TimelinesImplementationPlan / Benefits

Program Evaluations

– Vision and mission statement of wellness program

– Overall goals of benefit design and wellness programs

– Clear, concise, measurable objectives, preferably based on assessment results

– When and how participants will be enrolled

Periodic meetings to assess program progress

Operational Plan Components

– Periodic meetings to assess program progress

– Plan for evaluating progress against goals and objectives including mid term evaluation and mid course corrections if necessary

– Program timeline

– Itemized budget sufficient to implement program

– Date for final report and recommendations for future

Health Care Benefits Design

Health plans should incorporate the following elements:

– Prevention and wellness

– Disease management

Chronic care management– Chronic care management

– Pharmacy benefits with guidance on medication adherence

– Education on appropriate care delivery/patient rights

• Support from ALL levels of management

• Buy‐in from Employees

• Heath Risk Assessments and Appraisals

• Employee buy‐in through surveys

• Establish Wellness Team/Coordinator

Elements of Successful Programs

• Develop program based on interest, needs, appropriate interventions 

• Effective use of Incentives

• Measure results and effectiveness

STEP 1

STEP 2

COMPANY ASSESSMENT

DATA ANDMETRICS

ROADMAP FOR IMPLEMENTING WORKPLACE WELLNESS PROGRAMS

STEP 2

STEP 3

STEP 4

STEP 5

DATA AND METRICS

OPERATIONAL PLAN

INTERVENTIONS

EVALUATION & REFINEMENTS

INTERVENTIONS

Step 4

PrimordialPrevention 

PrimaryPrevention

Secondary Prevention

Tertiary Prevention

4/2/2014

5

LEVELS OF PREVENTION 

• Primordial – Smoke Free– Exercise Supported – Healthy food options 

• Primary– Lifestyle Change– Immunizations– Seat Belts

• Secondary– Compliance with guidelines– Screenings

• Tertiary– Compliance with Care– Disease Management

• Matching the needs 

Lif t l

Environment 19%

Health Services 10%

Health Behaviors: The Main Mortality Risk Factors in U.S.

Lifestyle

Personal Health Behaviors are the main Causes of Death

Lifestyle 51%

Heredity 20%

Heredity

Environment

Health Services

Mokdad AH, et.al. Actual Causes of death in the United States, 2000. JAMA. 2004; 291:1238-1245.

Health & Health & ProductivityProductivity

BUILDING A CULTURE OF HEALTHHealth Advocate• Provide Direction• Get the Care You Need• Coaching & Outreach Health Plan Design

Environmental DesignBehavioral Health•Work/Family•Work Life Plus

Health Portal•Stay healthy•Health information•Make informed choices

Disease Management•High Acuity (identified high cost disease)•Low Acuity (identified lower cost disease; lifestyle behavior focus) 

ProductivityProductivity

Occupational Health•Medical Surveillance •Illness And Injury Management

Health Risk Assessment • Assess and track health behaviors• Maintain health• Address health risks

Fitness Centers•Low risk maintenance•High risk reduction

Wellness Programs•Active expansion•Retiree communications/awareness program

Case Management

• STD, LTD•Workers’ Compensation• Scattered Absence

Absence Management

STEP 1

STEP 2

COMPANY ASSESSMENT

DATA ANDMETRICS

ROADMAP FOR IMPLEMENTING WORKPLACE WELLNESS PROGRAMS

STEP 2

STEP 3

STEP 4

STEP 5

DATA AND METRICS

OPERATIONAL PLAN

INTERVENTIONS

EVALUATION & REFINEMENTS

EVALUATION & REFINEMENTS

Step 5

Analysis of allevaluations

Participant Survey Results

ROI/VOI Recommendations

PERFORMANCE MEASURES: CRITICAL STEPS TO SUCCESS

30

4/2/2014

6

MANAGEMENT : TRACKING PERFORMANCE

31

A ROADMAP FOR IMPROVING THE HEALTH OF YOUR EMPLOYEES AND YOUR ORGANIZATION

Search for Employer Health Asset Management Roadmap

STEP 1: DEVELOP AND EMBRACE A CULTURE OF HEALTH 

• Consider establishing a corporate wellness advisory board

“Investment in health delivery is consistent with a long‐term view of maximizing return on human capital.”Michael Critelli—CEO,

• Integrate within the existing corporate culture

– Credo

– Principles

– Corporate  Mission

– Corporate Vision 

Michael Critelli CEO, Pitney‐Bowes

“Our profit potential is inextricably linked to the capability and performance of our employees.”Andrew Liveris—President and CEO, The Dow Chemical Company

33

STEP 2: SECURE SENIOR MANAGEMENT COMMITMENT AND PARTICIPATION 

• Senior Leadership sets the tone

– Committed in good economic times and bad 

• What senior leaders DO in is far more important than what they SAY

– Must “walk the talk”

• Senior Leadership must communicate importance of a healthy workforce & support strategies & initiatives 

– Sponsorship of key initiatives

– Facilitates employee & management buy‐in  34

STEP 3: ADDRESS WORKPLACE POLICIES AND THE WORK ENVIRONMENT 

• Workplace Policies: written & disseminated in coordination with facilities management

• Work Environment: Promote healthy behaviors– First step: Focus on job safety, ergonomics

– Next step: Non‐smoking environment thenNext step: Non‐smoking environment, then

• Healthy eating –cafeteria  “teachable moment”

• Physical activity at work

• Marketing plan drives communications– Branding

– Multimedia

35

Ultimate Goal: Employees will view health as a priority on a par with other organizational values

STEP 4: USE DIAGNOSTICS, INFORMATICS AND METRICS TO EVALUATE PROGRAM 

• Population health management involves:

– Data

– Demographics 

• Data collection and analysis crucial:

– Allows baseline measurement of the problem

– Behaviors

– Illness Burden

– Allows measurement of progress

– Provides information to facilitate necessary behavior changes

– Risk stratify employees (i.e. high/acute risk, chronic risk, moderate risk, low risk)

• Tailor prevention & intervention programs for specific employee populations

• Future offers “personalization” – implication to engagement and compliance

4/2/2014

7

A CULTURE OF HEALTH: COMPREHENSIVE IMPLEMENTATION REQUIRES INTEGRATED DATA 

WAREHOUSE & ANALYTICS

Business DataHR/Payroll

Business DataCustomer SatisfactionProduction DataQuality DataOperational DataNet IncomeGross RevenueHuman Capital Costs

Lost Time Data

HR/PayrollEmployee DemographicsTime ReportingEmployee SurveysTurnover/Overtime DataPerformance Appraisals

37

Lost TimeData

Medical Data

ProductivityMetricsSUBJECT

WC/Safety Data

Productivity MetricsStaffing/OvertimePer Employee Costs and RevenuesSelf-Reported Presenteeism

WC/Safety DataOSHA, Accident ReportingDrug TestingWC Claims Data

Medical DataGroup HealthPharmacyMental HealthHealth Risk AppraisalsDisease PrevalenceEAP Utilizaiton

Lost Time DataSTDLTDFMLAPTO/Sick Leave

Integrated Data Analysis

STEP 5: SET HEALTH GOALS AND PROGRAM ELEMENTS 

• As organizations progress they:

– Broaden their health goals to promote productivity

– Focus on the full spectrum of population health 

• treating high‐risk employees

• Put at‐risk employees on the road to better health

• Keep healthy employees healthy!

Seek continual improvement in health outcomes– Seek continual improvement in health outcomes

• Phase 3 organizations:

– Integrate a robust set of program elements– Both the employer and employees take responsibility for meeting health goals

– Have established health committees/teams to support and execute the organization’s health vision

– Use rewards (intrinsic vs. extrinsic) and recognition to increase participation in health improvement programs

GREATER RETURN TO KEEP THE WELL WELL~ 2:1WELLNESS SCORE & MEDICAL COSTS OVER 3 YEARS

YEAR 1

9,452 (34%)

71.8

$7,728

18,347 (66%)

85.9

$3,822

N=27,799

Wellness Score 81.1

Mean Cost $5,150 WELLILL

YEAR 2

YEAR 3

6,285

71.4

$8,801

3,167

82.5

$5,675

2,810

75.6

$7,051

15,537

87

$3691

4,819

70.9

$9,555

1,466

82.6

$6,564

1,131

74.8

$6,812

2,036

83.9

$4,899

1306

74.3

$9,078

1,504

84.1

$6,728

1,742

76

$6,893

13,795

87.6

$3,704

Zero Trends; Dee Edington 2009

39

STEP 6: CREATE A VALUE‐BASED DESIGN PLAN 

Classic Examples:

• Out of pocket costs based on value provided by medication or treatment

– No co‐payments for generic “rescue inhalers” for asthmatics

• Provide rewards and recognitions for h lth b h i

• Value Based Design Plan

– Data ‐ understand the risk profile of the covered population

– Design ‐ understand which services have value 

– Deliver ‐ communicate the

40

healthy behaviors

– Completing health risk assessments

• Having a non‐smoking status 

– Participating in health coaching

– Earn basic, better and best benefit plans

40

Deliver  communicate the benefits to employees early and often

– Dividends ‐ evaluate program effectiveness using metrics (evidence‐based) 

Leveraging Behavioral Economics & Rewarding Engagement

LEVERAGING BEHAVIORAL ECONOMICS TO IMPROVE ENGAGEMENT

• Use the magic of opt‐out– Make the preferred choice the 

default

• Mere measurement– Interventional surveys

• Aversion of lossk l d

• Provide rewards and recognitions for healthy behaviors

– Completing health risk assessments

– Having a non‐smoking status 

– Participating in health coaching

• Earn basic better and best– Taking away privileges or rewards

• Value Based Benefit Design– Out of pocket costs based on proven 

value provided by medication or treatment

– No co‐payments for generic “rescue inhalers” for asthmatics

• Earn basic, better and best benefit plans 

• Mastery– Educate leading to self‐care 

– Peer mentoring 

• Rank Comparison– Competition 

41

EngagementReinforcing Behaviors then OUTCOME 

Cash Trinkets Lottery Recognition CompetitionBetter Benefits 

Health

42

Moving Rewards From Extrinsic to Intrinsic 

4/2/2014

8

STEP 7: INTEGRATE PATIENT CENTERED MEDICAL HOME AND CHRONIC CARE MANAGEMENT

• Population Health including: 

• Patient‐Centered Medical Home (PCMH):– Goal of achieving better health outcomes based on evidence

– An approach to providing primary care through a trusted primary care teamteam

• Continuous, coordinated and comprehensive care

• Across spectrum of population health – well, at risk, chronically ill 

• Chronic care management – Continuity ‐manages care over time

– Mitigates complications

– Utilizes evidence based guidelines

– Follows key process and outcome measures on an individual and population basis

Personal Physician

Physician‐Directed Medical Practice

Whole P

PATIENT‐CENTERED MEDICAL HOME 7 KEY TENETS 

Patient has ongoing relationship w/ a personal doctor, or other qualified lead practitioner

The doctor leads a team who collectively provide ongoing care.

Team provides all patient care needs or arranges

A Patient GatewayNOT a Gate Keeper

44

Person Orientation

CoordinatedIntegrated 

Care

Quality and Safety

Enhanced Access to Care

Payment

for care with other qualified professionals.

Information technology links all elements of care (e.g. hospital, specialist, home health agency, nursing home) and the patient’s community (e.g. family).

Robust partnership among physicians, patients, and their families; evidence-based medicine and CDS support tools guide decision making; IT supports optimal patient care and enhanced communication.

Expanded hours, open scheduling, better communication

Creates payment structure recognizing added value provided to patients.

THE TRUSTED CLINICIAN CAN BE A POWERFUL INFLUENCE

Thomson Reuters/Healthcare & Science/

4545

Source: Magee, J., Relationship Based health Care in the United States, United Kingdom, Canada, Germany, South Africa and Japan. 2003

CHRONIC CARE MODEL

DeliverySystem Decision

ClinicalInformation

Health System

Resources and Policies

Community

Self-Management

Health Care Organization

Productive

Interactions

Outcomes

Informed,

Activated

Patient

Prepared,

Practice Team

Proactive

Design Support SystemsManagement Support

Improved Outcomes

EVOLUTION OF A CORPORATE CULTURE OF HEALTH

Phase I

•Focus on cost containment 

•Commit to managing diseases generating high costs

•Cost shifting strategy as a short term solution

•Transitioning to population health approach

47

Phase II •Re‐evaluation of cost‐shifting – recognizing financial barriers to needed care

•Greater involvement by senior leadership – health vision emerges

Phase III 

•Sophisticated information technology & health policies•Integrated employee health & productivity improvement strategy •Senior leadership, management & employees are fully committed 

Our Research (2009‐present)  

• 218 Elements with weighting 

• 10 Categories with weighting 

• Using 11 Thresholds and scoring for intensity

P f i 1000• Perfect score is 1000

• Benchmark companies score ~ 700

• Gaps from benchmark define strategic plan 

• Proof of Concept being repeatably established 

4/2/2014

9

Why Do It ? 

• It Is Where The Puck Is Going 

• Some Companies Have Achieved It 

di l S i• Medical Cost Savings 

• Improved Workforce Performance

• Reduced Absence & Disability

• Employer of Choice Status   

“A good hockey player plays where the puck is. A great hockey player plays where

the puck is going to be”.Wayne Gretzky

Employer HealthcareThe Case For Change

• Decades of unabated health premium increases

– Fueled by avoidable medical costs – wasteful spending – $1 out of every $3 

– Resulting in unaffordable health costs and great strain on organization budgets

– Medical benefits eat up approximately 3‐6 % of topline revenue in US organizations

• Avoidable health issues drive unacceptably high levels of 

presenteeism & absenteeism

– Significantly reducing workforce efficiency and effectiveness

– Poor performance due to illness costs employers 2 to 3 times more than medical costs

• Continuous medical benefit cost shifting (contribution increases, etc.) and the lack of help given to employees to manage their families’ health needs has resulted in much lower than possible employee appreciation and engagement

• Research however suggests that:

– Though some rebalancing may be initially appropriate for some, this approach to cost containment is unsustainable, and strategically more costly in the long run

– This may in fact accelerate costs in the near future (due to employees delaying or ignoring issues until they become catastrophic; while increasing the “medically homeless”)

– This is just making the “holes in the boat” smaller. It has been proven that cost shifting over the last decade has consumed virtually all of employee compensation gains, leaving family discretionary income lower on an inflation adjusted basis. This has also been correlated with declining employee satisfaction, loyalty and productivity in many cases.

50Proprietary & Confidential

Because Benchmark Employers Have Achieved ItProviding Competitive Advantage 

113

121

100

105

110

115

120

125

nu

al

Tre

nd

(2

005

= 1

00)

High Performer Net Cost Trends 2005 - 2010 Adjusted For Consumer Price Index (CPI-U) Inflation

51

Truven Health Analytics Clients: eight employers, with self funded plans, spanning multiple industries who also utilize Thomson Reuters decision support and analytic consulting services. These clients consistently outperformed net pay trend rates for the broader 53 client group each year and cumulatively from 2005 – 2010. As a group, they have consistently made innovative use of healthcare data to support all aspects of population health, productivity and plan management.

MarketScan: a group of over 50 Thomson Reuters clients with 5 million members covered in self funded plans that contributed to MarketScan continuously since 2005.

2010 Mercer National Survey of Employer Sponsored Health Plans: a comprehensive survey of 2,836 US employers. Reflecting the average reported healthcare trend rates across group size, geographic region and industry type.

93

85

90

95

100

2005 2006 2007 2008 2009 2010

Co

mp

ou

nd

An

n

High Performing Clients MarketScan Mercer

Demonstrates a Sustainable Culture of Health 

Average Savings 2002‐2008 = $565/employee/yearEstimated ROI: $1.88 ‐ $3.92 to $1.00

Proprietary & Confidential

52

2010 World Congress on Health Presentation

“Since beginning the (IHOA) in 2005, Crownʼs total health care spend has been lower than general inflation by $4 million over the five year span”Ken Wright VP Medical Benefits; Crown Cork & Seal

53Proprietary & Confidential

Health Correlates with PerformanceLampLighter Findings

68

69

70

71

72

73

Sco

re

64

65

66

67

68

Health 72.4 67.5 66.9

Top Performer Middle Performer Bottom Performer

54

Unileverʼs global “LampLighter” program research established a direct correlation between individual LampLighter wellness scores, and employee performance / engagement

Proprietary & Confidential

4/2/2014

10

Personal Health CostsMedical CarePharmaceutical costs

Productivity Costs

The Full Cost of Poor Health to EmployersImpact of poor health on productivity can be 2‐3x total cost

70%

30%

Presenteeism OvertimeTurnover

Temporary StaffingAdministrative Costs

Replacement TrainingOff-Site Travel for Care

Customer DissatisfactionVariable Product Quality

Absenteeism Short-term Disability Long-term Disability

Iceberg of Full Costs                   from Poor Health 

Loeppke, R., et al., "Health and Productivity as a Business Strategy: A Multi‐Employer Study", JOEM.2009; 51(4):411‐428. and Edington DW, Burton WN. Health and Productivity. In McCunney RJ, Editor. A Practical Approach to Occupational and Environmental Medicine. 3rd edition. Philadelphia, PA. Lippincott, Williams and Wilkens; 2003: 40‐152

7

Health & Productivity Why is this important to Coca‐Cola?

Continuum of Employee Performance Outcomes

Not doing work on k i

Not doing wellwhile working

unscheduled breaksunfocused time

health exams on work time

errorscomplaints

delaysteam breakdown

Lost to the workforce

Not at work

work time

permanent disabilityearly retirement due to health issues

premature death spousal illness

unscheduled absencedisability

workersʼ comp

replacement workers

health exams on work timeinformation gathering

56Proprietary & Confidential

Health & Employee Commitment Unilever Lamplighter Program 

Health Benefits • 18% increase in the number of employees who 

exercised

• 5% drop in the number of employees with high BMI

• 13% drop in the number of employees with high bl d (d f 2 % j 8%)

Engagement Enhancement • The Lancaster study showed that 

employees who participated in Lamplighter:

• Felt significantly more engaged with their work

blood pressure…(down from 21% to just 8%)

• 8% drop in the number of employees with high cholesterol

• 5% decrease in the number of employees classed as having poor nutrition

• 8% decrease in the number of smokers. Overall the number of employees classed as ʻhigh health riskʼ dropped by 5%

• Overall the number of employees classed as ʻlow health riskʼ increased by 23%

work

• Were less likely to take time off work due to health problems

• Were able to perform better in their job

• Were less likely to be adversely affected by pressure at work

• Were more likely to practice healthy behaviors at work

Proprietary & ConfidentialAll Rights Reserved

57

Employer of Choice

• Supporting Health & 100 Best Companies to Work For 

• Yum Brands – reducing turnover 

G ld S h i i d i h• Goldman Sachs – retaining and attraction the best talent 

• Return to Investors 

Proprietary & ConfidentialAll Rights Reserved

58

Fortune Magazine Identified Workplace Health as a Key Driver of Employee Satisfaction

Comprehensive health and wellness services are 

mentioned several times

59

mentioned several times as the reason why a company achieved “Employer of Choice”

status

Yum Brands Reducing Turnover 

Proprietary & ConfidentialAll Rights Reserved

60

4/2/2014

11

The Goldman Sachs Wellness ExchangeRetracting and Retaining Talent 

• An integrated suite of services designed to support your personal health and well‐being and to help you manage your personal and family responsibilities.

• While specific services may vary by location/region, core offerings generally include: Supporting Your Health and Well‐Being

O it h lth t ith t di l f i l– On‐site health centers with access to medical professional

– On‐site fitness centers or off‐site fitness subsidies

– Referrals to medical professionals

– Patient advocacy and critical health solutions assistance

– Smoking cessation programs

– Travel resources and immunizations

– Ergonomic work station evaluations

– Recreational activities/events (outings, runs/walks, team clubs and leagues)

Proprietary & ConfidentialAll Rights Reserved

61

Return to Investors

• I‐trax (AMX:DMX) Research (2006)

– The Connection of Workplace Health Centers and Market Performance 

• Towers Watson Research (2010)• Towers Watson Research (2010)

• Our Most Recent Publication (2013) JOEM – The Link Between Workforce Health and the Bottom Line – Tracking the Market Performance of Companies that Nurture a Culture of Health 

• The HealthNEXT Advantage Fund (today)

Proprietary & ConfidentialAll Rights Reserved

62

I‐trax Research (2006)

• Over 200 onsite health clinics; Over 60 employers; 65% of them publicly traded

• Tracked as an investment portfolio; back‐cast to 2003

• For every $1 invested in the DJIA and S&P 500, our (I‐trax) client portfolio yielded at least 2X the growth to their shareholders in less than 3 years

Proprietary &ConfidentialAll Rights Reserved

63

HEALTH MEANS WEALTH HEALTHY EMPLOYEES YIELD WEALTHY EMPLOYERS

towerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. Financial outcomes

ACOEM / HealthNEXT Research (2013)

Marketplace rewards companies who achieve cultures of health:

• Used the ACOEM Corporate Health Achievement Award (CHAA) culture of health award winners as a stock portfolio

65Proprietary & Confidential

All Rights Reserved656565

• A portfolio of approximately twenty publicly traded award winners; over nearly two decades

• Published last month (September) in the JOEM

• Once again the portfolio outperformed the market significantly; in all four test scenarios

HealthNEXT Research (2008 – present)

• Created a stock portfolio based on the key learning from the HealthNEXTEmployer Health Opportunity Assessment (EHOA) scorecard

• Invested $400,000 into the portfolio of approximately 30 

25 Points 20 Points 15 Points 10 Points 10 Points 10 Points 10 Points 75% / 25%20 20 15 5 10 10 10 3.60 3.37 3.54225 20 15 5 10 10 10 3.80 2.51 3.47825 10 10 5 10 10 10 3.20 3.35 3.23815 15 15 10 10 10 5 3.20 3.31 3.22820 20 15 5 10 10 10 3.60 3.07 3.46825 5 10 10 5 5 0 2.40 4.00 2.80010 15 15 10 10 10 5 3.00 3.38 3.09610 15 15 10 10 10 10 3.20 3.34 3.23615 15 15 5 10 10 5 3.00 2.57 2.89225 5 5 5 10 10 10 2.80 3.74 3.03415 15 10 10 10 10 10 3.20 2.40 3.00020 15 15 5 10 10 0 3.00 3.39 3.09815 10 10 10 10 10 5 2.80 3.39 2.94815 10 10 5 10 10 10 2.80 3.39 2.94815 10 10 10 10 10 5 2.80 3.07 2.86810 5 15 10 5 10 10 2.60 3.06 2.71615 10 10 5 10 10 5 2.60 3.49 2.82210 20 10 0 10 10 10 2.80 3.20 2.90010 10 15 5 10 10 5 2.60 3.16 2.74010 10 10 5 10 10 10 2.60 3.00 2.70015 15 10 5 5 5 5 2.40 3.58 2.69410 20 5 5 5 5 10 2 40 3 50 2 674

Silver (23%)

Gold (30%)

Health PointsAverage

Weighted Health

Platinum (35%)

Concensus Overall

Weighted

publicly traded companies; using a scoring criteria to weight & unweight the portfolio based on employer score

• Back‐casted to 2001

• Again, this portfolio has consistently outperformed the market by magnitudes; in both good times and bad

Proprietary &ConfidentialAll Rights Reserved

66

10 20 5 5 5 5 10 2.40 3.50 2.67415 5 10 5 10 10 10 2.60 2.85 2.66210 5 5 10 10 10 10 2.40 3.34 2.63610 20 5 0 5 10 10 2.40 2.33 2.38210 5 15 5 5 5 5 2.00 3.33 2.33210 10 10 5 5 5 10 2.20 2.98 2.39615 5 5 10 5 5 0 1.80 3.20 2.15010 5 5 10 10 5 0 1.80 3.17 2.1425 5 10 10 10 5 10 2.20 2.53 2.282

10 0 5 10 5 5 10 1.80 3.13 2.13210 0 5 5 5 5 10 1.60 3.56 2.090

x 10 0 0 10 5 5 10 1.60 3.00 1.950x 5 5 0 10 0 5 5 1.20 2.78 1.596x 10 0 0 10 0 0 0 0.80 3.48 1.470x 10 0 0 10 0 0 0 0.80 2.89 1.322

Bronze (12%)

4/2/2014

12

Research ConclusionA preponderance of evidence; yet lacking clear roadmaps… 

until now

“Thoughcorrelationisnotthesameascausation,theresultsconsistentlyandsignificantlysuggestthatcompaniesfocusingonthehealthandsafetyoftheirworkforceareyieldinggreatervaluefortheirinvestorsaswell.Moreresearchneedstobedonetobetterunderstandthevalueofbuildingthese“culturesofhealth” intheworkplace. Perhapssucheffortsasthissimplyidentify“smart” companiesthatout‐perform.Buttheevidenceappearstobebuildingthathealthyworkforcesprovideacompetitiveadvantageinwaysthatbenefittheirinvestors.”

67Proprietary & Confidential

HEALTH MEANS WEALTH 

LIFE EXPECTANCY CORELATES WITH INCOME

Life Expectancy Mean Income

Source – Mapping the Measure of America 2010‐2011

68

HEALTH MEANS WEALTH

69

The Research Informs Business Success

A large proportion of illness is preventable by reducing health risks(Healthy People 2000, 2010; Amler & Dull, 1987; Breslow, 1993; McGinnis & 

Foege, 1993; Mokdad et al., 2004).

Health risks can be improved through workplace health programs (Loeppke, et al., 2008; Wilson et al., 1996; Heaney & Goetzel, 1997; Pelletier, 

1999).

Reductions of health risks can lead to reductions in health costs (Edington et al., 2001; Goetzel et al., 1999)

Healthy Workforce is More Productive & Engaged(Unilever Lamplighter Program 2011)

Companies that Focus on Health & Safety Outperform(Fabius et al 2013)

THE EVOLUTION OF MEDICAL MANAGEMENT

The evaluation of the appropriateness, medical need and efficiency of healthcare services

A system of coordinated healthcare interventions and communications for populations with conditions in

The health outcomes of a group of individuals, including the distribution of such outcomes

Reducing or eliminating health and injury & their risks enhances the performance of a workforce

GAME CHANGER

71

services. with conditions in which patient self-care efforts are significant.

such outcomes within the group.

workforce

UtilizationManagement

DiseaseManagement

PopulationHealth

Health &Productivity

Culture of Health