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International Association for Worksite Health Promotion 2010 Executive Summit April 7, 2010 Austin, TX Garry M. Lindsay, MPH, CHES Managing Senior Fellow.

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Presentation on theme: "International Association for Worksite Health Promotion 2010 Executive Summit April 7, 2010 Austin, TX Garry M. Lindsay, MPH, CHES Managing Senior Fellow."— Presentation transcript:

1 International Association for Worksite Health Promotion 2010 Executive Summit April 7, 2010 Austin, TX Garry M. Lindsay, MPH, CHES Managing Senior Fellow & Managing Project Officer Partnership for Prevention Leading by Example: Commitment Starts at the Top!

2 About Partnership for Prevention ®  Nonprofit, non-partisan national health policy organization Who We Are  Work to improve the health of all Americans by increasing the priority on disease prevention and health promotion  Develop, disseminate and advocate for science-based policies, practices, and programs  Convene various sectors to address priority health concerns  Translate evidence-based public health evidence and research into policy and practice  Leverage the workplace to improve health What We Do

3 Outline About Partnership for Prevention Understanding Management Support: The importance of leading by example and setting priorities Health Management Initiative Assessment Discussion Andrew Liveris DVD Q&A

4 Source: Kaiser Family Foundation calculations based on data from the National Compensation Survey, , conducted by the Bureau of Labor Statistics. Accessed March 23, Mean Health Insurance Costs Per Worker Hour for Employees with Access to Coverage

5 International Comparison of Spending on Health, 1980–2005 * PPP=Purchasing Power Parity. Data: OECD Health Data 2007, Version 10/2007. Average spending on health per capita ($US PPP*) Total expenditures on health as percent of GDP 5 Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2008

6 Poor Value for Healthcare Expenditures Most Expensive Healthcare System in the World ($2.2 Trillion per Year) Highest expenditure at 15.2% of GDP Highest expenditure per capita at $6347 Health Results are Poor Ranked 25th in the world for Infant Mortality Ranked 23rd in the world Life Expectancy Source: Organization for Economic Co-operation and Development. OECD Health Data 2008, - Version: June 2008 Copyright OECD 2008,

7 Chronic illness affects more than 33% of working-age Americans During 2006, the U.S. spent almost $2.2 trillion on health care Of every dollar spent… …75 cents went towards treating chronic disease

8 Actual Causes of Death 2 Tobacco Poor diet/ lack of exercise 3 Alcohol Infectious agents Pollutants/toxins Firearms Sexual behavior Motor vehicles Illicit drug use Leading Causes of Death 1 Percentage (of all deaths) Heart Disease Cancer Chronic lower respiratory disease Unintentional Injuries Pneumonia/influenza Diabetes Alzheimer’s disease Kidney Disease Stroke Percentage (of all deaths) Sources: 1 National Vital Statistics Reports, Vol. 53, No. 15, February 28, Adapted from McGinnis Foege, updated by Mokdad et. al., JAMA, April 20, 2005—Vol 293, No. 15, pg Actual vs. Leading Causes of Death

9 Situational Awareness: A Broken System Source: Robert Half Management Resources, March 2006; and, Goldman DP, Joyce GF, Escarce JJ, et al. Pharmacy benefits and the use of drugs by the chronically ill. JAMA. 2004;291: ; and Goldman DP, et al, JAMA 2004:291: % said they address high costs by increasing premiums & cost shifting. Yet, studies have shown increased cost shifting creates barriers to healthy behaviors and may reduce patients’ efforts to engage in preventive care. For example, when co-pays were doubled, patients took less medication in important classes including hypertension, cholesterol and diabetes. In turn, hospital ER visits and hospital stays also increased by more than 10 percent.

10 Shift in Thinking Yesterday’s Assumption: Health is a COST driver Initiatives to improve employee health are primarily a strategy for controlling top line expense Today’s Reality: Health is a PERFORMANCE driver Investing in health not only controls expenses, but also protects, supports and enhances human capital. It is fundamental to a healthier bottom line Partnership for Prevention: Leading by Example, VS.

11 Relative Costs of Poor Health: Total Value of Health Total Value of Health Direct Costs: Medical & Pharmacy Indirect Costs: STD LTD Workers’ Compensation Presenteeism Absenteeism Edington, Burton. A Practical Approach to Occupational and Environmental Medicine (McCunney) Time Away from Work

12 Low ImpactMedium ImpactHigh Impact High Control Effective Communications Communicate Evaluation Results Link Programs to Business Goals Medium Control Evaluation Component Incentive Program Low Control Strong BudgetSupportive Culture Top Management Support O'Donnell M. Health Promotion in the Workplace. 3rd ed. Albany, NY: Delmar; 2001, page 50. Importance of CEO Support

13 Leading by Example Often CEOs Not Aware of Business Case Continual rises in health care costs can be reduced through health management initiatives Employee health should be seen as an investment to be maximized rather than a cost to be minimized  Employee Performance  Business Performance Peer Influence

14 Leading by Example Highlights the direct & indirect costs of poor health Convince CEOs of the business case for investing in worksite health through a peer-level initiative Transform the American healthcare system to emphasize prevention rather than treatment through CEO influence

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16 Importance of Senior Leadership Leading by Example Commitment ™

17 What Some Leading by Example Companies are Doing Safeway 100% coverage of annual physicals Incentives weight loss, tobacco cessation, stress reduction and positive healthy behaviors Premium discounts for healthy decisions and higher (based) premiums for non- compliance “Too often companies look at wellness as just another benefit. We have fully integrated wellness into every aspect of our company’s culture. It’s a source of pride, and reflects how we care for one another. As a result, wellness has become a critical element of our success.” -- Steve Burd, Chairman, President, and CEO

18 What Some Leading by Example Companies are Doing Intel Corporation Wellness program includes onsite fitness centers, fitness challenges, weight management, flu prevention, mammography vans, nutrition seminars, and healthy choice meals in cafeterias. First four months of onsite biometrics and coaching yielded more than 10,000 participants Employee satisfaction ranks above 90% “At Intel, prevention and wellness are a priority. Intel saves on health care costs, and our employees and their families get engaged in managing their health for the rest of their lives. We hear from employees every day how much they appreciate this approach. By working together, we’re making a difference in both employee health and the health of Intel.” – Paul S. Otellini, President and CEO

19 What Some Leading by Example Companies are Doing Lincoln Industries Mandatory quarterly health screenings and individual coaching Health Reimbursement Account (HRA) with credits for being tobacco free Tobacco-free campus Health care cost 50% below national average “Too often companies look at wellness as just another benefit. We have fully integrated wellness into every aspect of our company’s culture. It’s a source of pride and reflects how we care for one another. As a result, wellness has become a critical element of our success.” -- Marc LeBaron, Chairman and CEO

20 Outline About Partnership for Prevention Understanding Management Support: The importance of leading by example and setting priorities Health Management Initiative Assessment Discussion Andrew Liveris DVD Q&A

21 What Some Leading by Example Companies are Doing The Dow Chemical Company Company health strategy Preventive emphasis in benefit plan Relevant workplace health policy Over 85% of North American employees voluntarily participate in one or more health services each year “In 2004, we launched a simple yet dynamic Health Strategy that took our business case for health investment to the next level. This strategy is sharply focused on improving Dow’s financial position by promoting better health, and features tough goals and clear metrics to ensure forward progress. Our top two priorities are prevention and quality and effectiveness of health care.” -- Andrew N. Liveris, Chairman and CEO

22 Outline About Partnership for Prevention Understanding Management Support: The importance of leading by example and setting priorities Health Management Initiative Assessment Discussion Andrew Liveris DVD Q&A

23 Questions Garry M. Lindsay, MPH, CHES Managing Senior Fellow & Senior Program Officer Partnership for Prevention th St., NW, Suite 300 Washington, DC (202)


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