1. “Successful Workplace Wellness Program Case Study: Healthy University”
Keith Edic
Director Wellness Services

2. Why Employee Wellness?
The total cost of obesity to U.S. employers is $13 billion per year1
Obese Americans spend about 36 percent more on health services and 77 percent more on medications than people of healthy weight.  That’s more than heavy smokers or heavy drinkers2
Workplace alcohol, tobacco, and other drug use costs over $100 billion each year3
Workers’ compensation costs for a smoker averages $2,189 compared to only $176 for a nonsmoker4
Job stress is estimated to cost $200 to $300 billion annually in absenteeism, tardiness, and lost productivity5
1 Cost Benefit Analysis and Report , Univ. of Michigan Health Management Research Center Rand Corporation, 2004
2 Six Reasons Why Health Promotion Makes Sense, Welcoa, 2002
3 Six Reasons Why Health Promotion Makes Sense, Welcoa, 2002
4 Cost Benefit Analysis and Report , Univ. of Michigan Health Management Research Ctr.
5 July 2001, Journal of Occupational and Environmental Medicine

3. HELP!
Photography by Brian Luke Seaward, Ph.D.

4. Every year your employees will:
69% of employees will get a cold, flu and/or other respiratory infection
30% will sustain a minor injury
24% will have a non-respiratory infection
12% will have a digestive disorder

5. Emergency Department Visits
1.23 million ED visits in 2008
83 million test (x-rays, MRI, CT Scans, etc)
Typical cost per visit: $1,265 (2008)
30% of all ED visits are unnecessary

6. Physician Visits 1.2 billion visits in 2007 Average cost: $120 (2003)
7 in10 visits result in at least one prescription-
2.7 billion overall.
30% of all Physician visits are unnecessary

7. Employee Wellness Programs Can Help!
Valley Health:
Employee Wellness Results

8. 2010 Healthy U Summary
Increased VH employee participation from 24% to 31%
Over 19,000 Health Coaching contacts (face to face, phone, or )
Over 170 referrals to physicians, diabetes management, fitness centers, and nutritional counseling.
Reduction in biometrics from :
BMI %
Weight %
Cholesterol %
LDL %
Triglycerides 10%
Glucose %
Jan % of participants chose the new Wellness Bucks incentive as their reward!

9. Valley Health Insurance Claims

10. All VHS Insurance Total Per Member Per Month Cost

11. VHS Health Care Cost Trend Differential

12. VHS Shift in Multiple Health Risk Prevalence
Average annual cost:
0-2 Risk Factors $2,199
3-4 Risk Factors $3,460
5+ Risk Factors $5,520
Moving a single employee with 5+ RF to 0-2 RF =
$3,321 in savings
In 2010 Health Risk Prevalence shift savings =
$60,365

13. VHS Weight Reduction and Tobacco Cessation
Studies show moving one person’s BMI from >30 to < 29 nets a $1,400 cost savings.
$15,400 in savings in 2010
Having one employee quit smoking nets a cost savings of $3,391.
$30,519 in savings in 2010
BMI = 11 HU participants meeting that particular criteria
Tobacco = 9 HU participants quitting

14. VH Employee Sick Leave Differential
Collected actual sick leave hours used in
Initially separated data into 2 groups:
Healthy U Participants (HUP)
Non Healthy U Participants (non HUP)
Utilized VH badge numbers to match Healthy U participants.

17. VH Employee Sick Leave Differential
“Well, you just have healthier employees in Healthy U so the numbers should be lower. Right?”

18. VH Non Healthy U
21% Reduction = $451
High Risk
Moderate Risk
Low Risk

19. Healthy U Participant Sick Leave Differential Savings
Cost if not in HU Actual HUP Cost
2008 $ 419,468 $ 156,468
2009 $1,789,647 $ 797,837
2010 $2,944,927 $1,484,675
$5,154,042 $2,438,979
Total savings over 3 years in sick leave hours:
$2,715,063

20. Valley Health Systems – 2010 Health Care Cost Savings
Health Care Cost Trend Differential $2,794,129
Differential of VHS cost vs. national average (Milliman Index)
IF VHS incurred same rate as benchmark (7.8% vs. actual -1.6%) = would result in another $2.7 Million spent
VHS cost with -1.6% increase - $29,151,143 Milliman Index 2010 cost increase of 7.8% - $31,945,272
VHS cost differential $31,945,272 - $29,151,143 = $2,794,129
Shift in Multiple Health Risk Prevalence $60,365
Positive shift in number of employees with 01, 2-3, 4+ risk factors minus negative shift in risk factors
0-2 Risk Factors = average cost $2,199 (18 from 3-4 RF and 7 from 5+ RF)
3-4 Risk Factors = average cost $3,460 (7 from 5+ RF)
5+ Risk Factors = average cost $5,520
(Edington, D, Emerging research, AJHP, 2001 Volume 15:5 pg )
Weight Reduction $15,400
(moving from BMI of >30 to < 29)
$1,400 x 11 (24 reduced -13 gained)
Tobacco Cessation $30,519
(6 months or longer tobacco free)
$3,391 x 9 employees (2 tobacco cessation and 7 Healthy U)
(Indiana Tobacco Quitline)
Healthy U Participant Sick Leave Differential $1,460,252
Healthy U participants (HUP) cost vs. Non Healthy U participants (NHUP) cost
IF HUP incurred same cost as NHUP = would result in another $1.46 Million spent
HUP cost - $1,484, NHUP cost - $2,944,927
HUP cost differential $2,944,927 - $1,484,675 = $1,460,252
(VH actual sick leave usage in 2010)
Total Cost Avoidance $4,360,665
Total Cost of Wellness Services in $593,209
Total Return on Investment ($3,767,456 savings) to 1

21. What is the next step for Employee Wellness Programs?

22. Employee Wellness Next Steps
Medical Self-Care (WELCOA)
Currently less than 10% of companies
Personal Health Records (WELCOA)
95% of diagnosis is based on medical history (Association for American Physicians and Surgeons)
Primary Care Physician
Limit unnecessary visits to the ED

23. Questions?

24. Thank you!