How to Successfully Meet the Needs & Reach the Dispersed Employee Populations Introduction Rationale Building The Problem The Solution ©2000, 2001 Lighthouse Health & Fitness, Inc.

Introduction t Contact Information –Sean Slovenski President & CEO, Lighthouse Health & Fitness, Inc. (513) –Loren Brink President & CEO, EverWell, Inc. (612)

©2000, 2001 Lighthouse Health & Fitness, Inc. Rationale Building Population Trends t Baby Boomers Are Aging Quality of life issues Second careers Increased health concerns

©2000, 2001 Lighthouse Health & Fitness, Inc. Rationale Building Population Trends t Life Expectancy Has Increased Chronic diseases are becoming more prevalent and need to be managed for a longer duration of time

©2000, 2001 Lighthouse Health & Fitness, Inc. Rationale Building Population Trends t Increase of Single Parent & Dual Career Households Time is more valued than ever before Cost is not the only discriminating factor of a service that is purchased anymore, time saved is now a decision qualifier

©2000, 2001 Lighthouse Health & Fitness, Inc. Rationale Building Population Trends t Health information is “Over Available” resulting in feelings of being overwhelmed and/or confusion on behalf of the consumer

©2000, 2001 Lighthouse Health & Fitness, Inc. Rationale Building Corporate Health Trends t Recognition that Fitness Centers, while a valuable employee health component, do not meet the needs for all employees –Question: What about the other 65%, why don’t they participate?

©2000, 2001 Lighthouse Health & Fitness, Inc. Rationale Building Corporate Health Trends t When expanded to the entire population of employees and spouses, fitness centers are even more restricted in their impact/reach –Question: With dependents added, What about the other 94%, why don’t they participate?

©2000, 2001 Lighthouse Health & Fitness, Inc. The Resulting Problem t Access to health services are not convenient on a mass scale t Mixed messages to consumer –Limited applicability skills on behalf of the consumer to use information t Significant time needed by consumer to decipher the secret code of better health with limited direction from health providers

©2000, 2001 Lighthouse Health & Fitness, Inc. These issues result in One Common Focal Point that is the “Root” of the problem with improving health t Non-Compliance with needed action on behalf of the individual Taking Medication Routinely Exercising Maintaining Proper Nutrition Habits Practicing Preventive Behaviors as a New Lifestyle Habit

©2000, 2001 Lighthouse Health & Fitness, Inc. Impact of the Root Problem t Effects of Non-Compliance Increased Cost Increased Utilization Decreased Health Status Poor Health Lower quality of life than desired Reduced Work and Life Productivity Decreased Customer Satisfaction Lack of perceived “Value” of benefits programs which reduce the recruitment and retention power of a corporation over it’s employees

©2000, 2001 Lighthouse Health & Fitness, Inc. Corporate Health Trends t Better focus on specific needs of individuals/populations t Increased use of home delivery of services –Rehab, Family Health, Personal Training, Nursing, etc. t Diversification of the uses for employee health programs –Recruitment & Retention –Philosophical Fit With Customers –Preferred Healthy Vendor Clause –Competitive Edge Frontier –Direct Contracting Of “Non-Typical”Employee Health Services OB-GYN Cardiac Specific surgical procedures

©2000, 2001 Lighthouse Health & Fitness, Inc. Corporate Health Trends t Integration of employee health services instead of piecemeal approach. t Medical self-care & individual responsibility for health care. t In the past 5 years, availability of more valid measures for predicting risk and determining ROI. t Increased use of flexible benefits plan. t Increase in incentives for participation and improved health. –Plan related, gift related, work time off, etc t Increased exploration and use of the Internet to resolve access issues

©2000, 2001 Lighthouse Health & Fitness, Inc. Corporate Health Trends t Significant Increase in Demand for Health Management Services Improved access for customers Emphasis on decreasing inappropriate utilization Focus on managing health to decrease cost and promote customer retention

©2000, 2001 Lighthouse Health & Fitness, Inc. The Solution t Evolution from utilization and disease management to “Custom Health” Organization Level Individual Level Custom Health The Consumer Gets Just What They Need HealthCare

©2000, 2001 Lighthouse Health & Fitness, Inc. The Solution t Organization Level –A Business Planning Approach to Wellness Initiatives in Corporations t Individual Level –Easy/Guided access to resources and information that remove all barriers that lead to “NO” (I don’t have time, I can’t afford that, etc.) –Assistance with application of knowledge to the individual’s daily life (no “cookie cutter” approaches) –Reinforcement and recognition of successes –Focus on individual needs and issues (Personalization)

©2000, 2001 Lighthouse Health & Fitness, Inc. Business Planning Approach Traditional Wellness Programming Pieces Parts Add-on Not mission critical Basic level of measuring result Strategic Approach Integrated with vision and mission Solves a defined business problem Integrated programming Evolves from employee focus to customer focus Measurable ROI

©2000, 2001 Lighthouse Health & Fitness, Inc. Designing Health Process Guiding Principles: t Treat wellness/employee health initiatives with the same strategic approach as any other business strategy. t Use data as primary driver for decision making. t Incorporate all health related influencers and data in the planning process. t Design and implement services only if measurable return on investments can be quantified. t Focus on root cause of needs, not surface indicators.

©2000, 2001 Lighthouse Health & Fitness, Inc. Designing Health Process Designing Health Team Information Collection Data Analysis & Goal Setting Program Design Implement & Monitor Evaluation

©2000, 2001 Lighthouse Health & Fitness, Inc. Designing Health Process Information Collection Demographics Health Care Expenditures Corporate Culture & Goals Employee Absenteeism & Productivity Physician & Other Health Care Resources Health Risk Appraisal & Health Screening

©2000, 2001 Lighthouse Health & Fitness, Inc. Designing Health Process Designing Health Plan Prioritized Need - Top 5 to 10 Short & Long Term Goals Program/ Resources Financial & ROI Projections Data Collection & Reporting Plan Timelines & Responsibilities Marketing Plan

©2000, 2001 Lighthouse Health & Fitness, Inc. The Personal Outreach Solution Guided Access & Application of Knowledge as Easy As t 1 = Access

©2000, 2001 Lighthouse Health & Fitness, Inc. The Personal Outreach Solution Guided Access & Application of Knowledge as Easy as t 2 = Personal/Customized Direction Health survey to determine individual need Automated and live coaching to provide education, goal setting and resources that are tailored for the consumer Tracking that provides feedback, rewards behavior and shows progress over time Confidential and accessible 24 hours a day

©2000, 2001 Lighthouse Health & Fitness, Inc.

The Outreach Solution Guided Access & Application Of Knowledge As Easy As You Have The Power to Change in The Palm of Your Hand t 3 - Instilling this belief in the individual

©2000, 2001 Lighthouse Health & Fitness, Inc. Questions