1 Developing Partnerships Between Healthcare and Business Together we can make a difference The Lowndes County Partnership for Health

2 Mark Wilson Vice President Director of Human Resources Langdale Industries Presented by: John Sparks Executive Director Lowndes County Partnership For Health August 22, 2006

3 Developing Partnerships Between Healthcare and Business Individual Community Regional Communities State Network of Communities Individual Employer

4 The Langdale Company (1894) 112 Year Old Family Business Self Insured with 1200 Employees Identified Health Plan Cost Problems Since 1990 Double Digit Cost Increases Lack of Credible Data

5 The Langdale Company (1894) Problem: Double-digit Health Care Cost Increases 2000 PEPY* Cost Trending to $6,400 Solution: Self Administer Claims = Access to Data Wellness and Disease Management Network Savings, Education and Incentives Results: PEPY Cost Held Level for 6 Years *Per Employee Per Year

6 The Langdale Company (1894) 2000 – $5,500 (Self Administered in 8/2000) 2001 – $4, – $5, – $5, – $5, – $5, PPO Cost for State of Georgia Approximately $7,000 PEPY (William Mercer Survey)

7 The Langdale Company (1894) Access to Paid Claims Data – Critical –Evaluate Plan Cost Drivers –Negotiate Areas that Most Impact the Plan Langdale Co-Founder of Partnership for Health Langdale Forest Products First Well Workplace Program Develop Wellness and Chronic Disease Prevention Programs

8 Developing Partnerships Between Healthcare and Business “…Just as they did with welfare reform a decade ago, states can once again play a lead role in driving change. Through demonstration projects in partnership with the private sector, states can illustrate the benefits of large- scale system reforms.” February 10, 2005 meeting of the National Governors Association” The paper called for the “establishment of a National Health Care Innovations Fund to support large-scale demonstrations emphasizing cost-effectiveness and quality improvements in the health care system.”

9 Developing Partnerships Between Healthcare and Business Individual Community Regional Communities State Network of Communities Individual Employer

10 Lowndes County Partnership for Health Problem:Access to care, chronic disease, rising costs No single stakeholder can solve Solution:Enhance communication and resource channel Leverage synergy Results:Improved preventive care Improved access to care Collaborative problem solving approach Transforming health of Lowndes County and surrounding area Educated Consumers

11 Lowndes County Partnership for Health Excerpt from letter written by Mr. Joseph Parker, President of Georgia Hospital Association to Mr. Tom Williams, CEO, Healthcare Research, Inc. dated July 30, “Based on almost four years of experience with the Community Decision Making Program, we have seen the need to adapt and change the original program model. …The Georgia Hospital Association is currently working with the administrative staff at South Georgia Medical Center and other community leaders in the Lowndes County area to organize and implement a demonstration Partnership for Health program. The expected result is a replicable model which can easily be adopted by communities across the state.”

12 Community Decision Making Model Leadership Group Health Council Community Action Team Community Action Team Community Action Team Community Action Team Community Action Team Community Action Team

13 Lowndes County Partnership for Health Board of Directors Executive Committee Executive Dir. Staff Board Development Program Development Resource Development Resource Development Financial Management Marketing

14 Lowndes County Partnership for Health Board of Directors Executive Committee Executive Dir. Staff Board Development Program Development Resource Development Resource Development Financial Management Marketing Hospitals Public Health Health Care Providers Industry School Systems University City Government County Government Faith Community Other Organizations

15 Lowndes County Partnership for Health History 1996 – Planning/Start-up Grant ($35,000 Healthcare Research) 1997 – Incorporated; 501(c)(3) 1997 – Community Health Needs Assessment 1998 – Small CVD Initiatives 1999 – Wellness Initiatives in Businesses, Churches, and Schools ($531,000 HRSA Grant) 2001 – Well City Initiative ($258,000 from local Hospitals) 2002 – Well City Diabetes Initiative ($571,000 HRSA Grant)

16 Lowndes County Partnership for Health History 2003 – MedBank ($110,000 from local Hospitals) 2003 – Obesity Task Force ($12,500 Planning grant from Public Health Chronic Disease Program) 2004 – Partnership Cancer Fund (Local Fundraising) 2005 – Uninsured Committee Formed 2005 – Partnership Health Center Planning Begun ($17,500 from Georgia Department of Community Health) 2006 – Disease Management Project with the Langdale Company (Part of $145,000 Grant from Healthcare Georgia Foundation)

17 Lowndes County Partnership for Health Lowndes County Partnership for Health MedBank Free Clinic Cancer Fund Wellness Business, Churches, Schools Disease Management Wellness Center: Physical Activity, Nutrition Smoking Cessation, Stress Management Insurance Products Church Wellness Council Community Access

18 Some Lessons Learned Carefully consider and adopt wellness model Collaboration brings communication which decreases conflict between payers and providers Always consider the bottom line (ROI) Developing Partnerships Between Healthcare and Business

19 Developing Partnerships Between Healthcare and Business Individual Community Regional Communities State Network of Communities Individual Employer

20 Developing Partnerships Between Healthcare and Business Together we can make a difference The Lowndes County Partnership for Health