Copyright © 2014 Healthways, Inc. All rights reserved.

Friday, 7 November 2014

Dr Oliver Harrison, MD MPH

Healthways International

Is Happiness a good business strategy?

Well-Being and Sustainability in 2014

2

Four key concepts

1. Rise of values-based

organisations

2. Importance of consumer,

employee trust

3. Focus on long-term value

4. Increasing role of non-

government stakeholders

in prevention and health

(particularly employers)

Powerful swings in Trust over last 10 years

3

Source Edelman Trust Barometer 2014, available online at http://bit.ly/1poCZqE (last accessed Thursday, 6 November 2014)

Growing global interest in Well-Being

OECD

Better Life Index

United Kingdom

Office of National Statistics

Well-Being Survey

We have the tools to improve Well-Weing. Now we need to make it a priority.

European Commission

Stiglitz-Sen-Fitoussi Report

Gallup-Healthways

Well-Being Index • World is in state of

transition

• Key question is what

can I do now?

4

We all want to enable people to do their best work

Yet we still lose billions to lost productivity

IBI “Poor Health Costs U.S. Economy $576 Billion

According to the Integrated Benefits Institute” 2012

Journal of Occupational & Environmental Medicine:

April 2009 – Volume 51 – Issue 5 – pp411-428

5

Why is performance so low?

2.27x more likely to have a Low supervisor rating

1.8x more likely to have a Low intent-to-stay

2.38x more likely to have a Low self-rating of performance

Individuals with low well-being are:

Performance and intent-to-stay ratings are self-reported, imagine what the actual numbers might look like.

Healthways Study of Fortune 100 client

6

There’s no standing still

7

You’re either moving ahead

Or falling behind

Optimized care

Reduce lifestyle risk and keep healthy people healthy

Pursue well-being improvement toward 1.5x return

Without intervention, chronic conditions could double in cost in the next 10 years

Productivity costs are expected to increase by more than 36% over the next decade

Source Healthways, World Economic Forum Simulation Model, 2012

Improving Well-Being creates value… … How you capture that value is up to you

8

For example:

1. Reducing labour costs

2. Increasing output

3. Improving job quality and working conditions (e.g., to aid recruitment,

development, and retention)

__

Question

How would your organisation wish to capture significant new value?

Who we serve today

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Health insurers/commissioners (public, private)

Healthways offer a comprehensive range of

solutions to over 150 health funds across the

world, including public and private. Our tailored

programs are aimed at improving the health and

overall well-being of all members – from the

healthy to those with chronic conditions. All our

evidence-based programs seek to reduce claims

costs, to reduce hospital admissions and to

improve the adherence to care plans.

Providers

We offer fully customized health coaching

programs also to a variety of healthcare providers,

which include pharmaceutical manufacturers,

medical device manufacturers, hospitals,

physicians, and NGOs. Whether the goal is to

prevent hospitalization, to improve care and

medication adherence, to provide added value or

to increase patient wellbeing – we identify, discuss

and take steps to ensure the best possible care.

Public Health

Healthways works with public health organizations

and governments across the world to provide

tailored health and well-being programs. We seek

to improve the physical and mental health of the

individual and also guide people toward a more

fulfilled life as we pioneer a shift from corrective to

preventative healthcare. Our programs not only

reduce healthcare costs – they can also raise

awareness for community support services.

Employee Health

Around the world, Healthways are helping over

1,200 companies improve the health and well-

being of their employees by tackling the growing

burden of chronic disease, stress and poor health.

We offer workplaces a fully integrated health and

productivity solution – one that benchmarks

effectiveness and implements appropriate

interventions.

Leading by example Healthways “Walking the Talk”

Colleagues,

We threw a lot of changes at you with this year’s Be Well program, the biggest of which were the new Well-Being 5™

survey and feedback experience, moving to Well-Being Connect® and a new incentives model. We also introduced a new

program for financial well-being, re-launched Innergy® and just completed our third well-being challenge. Not all of these

changes were “pain free,” but—to no one’s surprise—you blew the doors off each one.

Allow me to recap:

• 96 percent participated in the Well-Being 5 survey

• 88 percent participated in physical health screenings

• 540 people enrolled in Financial Well-Being

• 2,550 total colleagues participated in three well-being challenges and lost nearly 1.5 tons combined

As we fast-forward into 2015, there’s very little changing with our medical benefits, but we’ll introduce some great

innovations in the broader Be Well program. For starters, I’m excited to see us launch a whole new experience with Well-

Being GO™, a new personalized well-being plan app for you and your dependents. That app will be the basis for an

upgraded and simplified incentives model; you’ll hear more about this as we get closer to launch.

As Healthways’ colleagues, we all have equal responsibility to support our purpose. And we know our networks play a

powerful part in improving our well-being. You have incredible power to influence your colleagues, families and friends

toward higher well-being. Be a well-being leader for your network—here’s how:

• Continue to do your part in 2015

• Bring your families, friends and colleagues along on the journey

• And if you use our medical benefits, sign up when Annual Enrollment kicks off October 30

More specifics about how you can continue to do your part are just around the corner. In the meantime, keep in mind that

well-being isn’t something extra to fit into our days; it’s an essential part of every day.

Be Well,

10

Individual Well-Being Score

% o

f E

mp

loy

ees

Fortune 50 Case Study: Setup

Study for a Fortune 50 client, Healthways implemented the following:

1. Well-Being Assessment

2. Biometric Screening

3. Well-Being Report

4. Well-Being Coaching

5. Daily ChallengeTM

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Fortune 50 Case Study: Conclusions Targeted Interventions Can Have Broad Impact

T1 Score T2 Score Employer Benchmark

* The results of a paired sample T-test indicate statistical significance, p<0.05

Life Evaluation

Well-being Domains

Overall Emotional Health

Physical Health

Healthy Behaviors

Work Environment

Basic Access

Healthcare Access

Financial Adequacy

Community Quality

100

90

80

70

60

50

40

30

20

10

0

-1.1 +3.7 * +3.3 *

+1.7 * +2.9 * +3.9 *

+6.1 *

+1.0 * +1.5

0.0

12

Fortune 50 Case Study: Results

13

* Paired sample t-test, p < 0.05

T1-T2 Matched Cohort, N = 780

Individual Well-Being Score

% o

f E

mp

loy

ees

T2: Average 71.0

T1: Average 73.9

(std dev = 13.4)

(std dev = 13.6)

Δ= 2.9 Well-Being Improved Significantly* in Matched Respondents

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Translating Odds to Probability of Business Impact

ER Visit Next 12 Months Turnover Intention 1+ Absence / Month

Being Rated a “High Performer”

Based on the odds, the chance of…

Fortune 50 Case Study

2011 Data; N = 1,306

Well-being Segment

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Summary

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• Low well-being destroys value (lower revenues and higher costs)

• Well-Being improvement creates value (economic and social capital)

• This value can be captured in a range of ways

• Effective, and cost-effective approaches exist today

• Organisations (and countries, regions) that are not addressing Well-

Being improvement as a priority will continue to see a compounding

decline in Well-Being

• Organisations (and countries, regions) that make Well-Being

improvement a priority will progressively build advantage

Copyright © 2014 Healthways, Inc. All rights reserved.

Friday, 7 November 2014

Dr Oliver Harrison, MD MPH

Healthways International

Is Happiness a good business strategy?

Copyright © 2012 Healthways, Inc. All rights reserved.

Fortune 50 Case Study: Results [2 of 2]

Healthways Longitudinal Well-Being Improvement

Net positive shift in well-being

+11%

-8%

10%

31%

27%

22%

10%

14%

38%

24%

16%

8%

T1 T2

Low Well-Being Score <53

Low-Mid Well-Being Score 53-66

Middle Well-Being Score 66-75

Mid-High Well-Being Score 75-88

High Well-Being Score 88+

17

Healthways estimates client value creation based on empirical analysis of >30 years’ results

18 18

Year 1 Year 2 Year 3 Year 4 Year 5

Absent/Productivity $ 2,235 $ 3,337 $ 4,172 $ 4,781 $ 5,197

Medical Savings $ 2,617 $ 4,743 $ 6,362 $ 7,653 $ 8,709

Total Value $ 4,852 $ 8,081 $ 10,534 $ 12,434 $ 13,906

Net Savings $ 2,281 $ 5,517 $ 9,916 $ 9,739 $ 11,214

Medical PMPM Impact (Total Value) $ 7.65 $ 13.87 $ 18.60 $ 22.38 $ 25.46

Overall PMPM Impact (Total Value) $ 14.19 $ 23.63 $ 30.80 $ 36.36 $ 40.66

14,000

12,000

10,000

8,000

0

Five Year Gross Value Projection Based on 28,500 total lives

4,000

Va

lue

(in

$0

00

’s)

$4,852

$8,081

$10,534

$12,434

$13,906 16,000

2,000

6,000

Empirical estimate of opportunity for employer value creation

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