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Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. The Business Case for Wellness Michael Richards Executive Director Gundersen Health System.

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Presentation on theme: "Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. The Business Case for Wellness Michael Richards Executive Director Gundersen Health System."— Presentation transcript:

1 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. The Business Case for Wellness Michael Richards Executive Director Gundersen Health System

2 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Tom

3 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. What is Wellness Wellness is a dynamic process of becoming aware of and making conscious choices toward a more balanced and healthy lifestyle. Tom’s story is an example of how health and well- being can improve when you successfully connect with an employee to make healthier choices that have paid off Wellness Body - Physical Mind- Intellectual Feelings- Emotional Work- Occupational Community- Environmental Spirit- Spiritual Relationships- Social

4 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Why Wellness? Health problems resulting from unhealthy lifestyle choices are costing the US economy well over $100 billion annually – Healthcare costs may use up 50% of company profits – 25% of these costs are attributed to behaviors Unhealthy workers – Require more medical care – Take more sick days – Are less productive (presenteeism)

5 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd.

6 Price Dane Clark Polk Vilas Grant Iron Bayfield Rusk Sawyer Linn Oneida Marathon Sauk Forest Taylor Iowa Dunn Douglas Marinette Sac Rock Lee Oconto Ida Wood Dodge Polk Sioux Tama Barron Lincoln Clay Iowa Ashland Kossuth Jackson Monroe Burnett Lyon Vernon Juneau Cass Story Jasper Adair Clayton Page Chippewa Portage Clinton Benton Buffalo Butler Fayette Jones Adams Shawano Mills Cedar Langlade Green Dallas Wright Plymouth Pierce Scott Floyd Davis Taylor Boone Webster Woodbury Monona Carroll Hardin St. Croix Shelby Marion Washburn Brown Columbia Harrison Waupaca Warren Guthrie Crawford Keokuk Jackson Wayne Greene O'Brien Franklin Union Lucas Henry Johnson Dubuque Lafayette Worth Decatur Calhoun Grundy Richland Pottawattamie Marshall Clarke Madison Hancock Hamilton Jefferson Crawford Allamakee Mahaska Ringgold Louisa Waushara Walworth Palo Alto Eau Claire Bremer Fond du Lac Mitchell Delaware Howard Fremont Adams Cherokee Outagamie Winneshiek Florence Buchanan Waukesha Monroe Emmet Door Manitowoc Poweshiek Wapello Winnebago Buena Vista Racine Black Hawk Audubon Washington Pocahontas Jefferson Van Buren Osceola Calumet La Crosse Chickasaw Marquette Humboldt Appanoose Muscatine Dickinson Pepin Winnebago Kenosha Menominee Trempealeau Sheboygan Cerro Gordo Washington Des Moines Montgomery Kewaunee Green Lake Ozaukee Milwaukee 2.7 1.8 1.7 2.4 1.8 4.1 1.7 2.5 2.6 1.7 1.4 2.2 2.5 2.2 2.1 2.3 1.6 2.2 2.8 1.6 2.0 1.2 2.1 2.7 1.4 2.3 2.1 2.6 2.5 2.7 2.8 1.9 1.8 2.1 2.9 1.6 2.8 3.2 2.7 2.1 2.3 2.7 2.9 2.2 3.3 2.0 2.1 3.9 2.0 3.2 2.4 2.6 2.1 2.6 2.3 2.2 1.6 2.1 2.6 2.1 3.0 2.3 2.7 3.2 1.9 2.8 4.8 2.7 2.0 4.0 3.5 2.8 2.3 2.4 2.6 2.5 2.1 2.8 1.9 2.3 2.4 2.1 2.0 3.1 3.6 2.5 3.0 2.2 2.3 2.8 2.5 2.4 1.8 2.6 2.9 2.4 3.9 3.0 3.4 2.2 1.7 1.8 2.3 2.2 2.5 2.0 2.7 1.9 2.2 1.8 2.2 1.82.3 1.9 3.4 1.7 1.9 2.7 2.0 2.1 1.9 1.6 2.2 2.3 1.9 3.1 2.1 1.6 2.9 2.8 2.1 1.8 2.1 3.0 2.1 2.2 2.4 2.2 2.0 1.7 2.2 2.1 2.3 2.1 1.8 2.6 2.1 1.9 2.4 2.1 3.6 2.1 1.7 2.6 2.5 3.1 2.2 2.8 2.6 1.9 2.7 Labor Data Source: US Dept of Labor – Bureau of Labor Statistics, County Employed as of July 2012 Medicare Data Source: Centers for Medicare & Medicaid Services, Medicare County Enrollment as of July 2012 Labor to Medicare Ratio Employed/Medicare Enrolled per County 1 - 1.9 2 - 2.9 3 - 3.9 4 - 4.9 Labor to Medicare Ratio

7 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Bottom Line 42 companies studied (Aflac, 2012) that have worksite wellness programming – 28% reduction in sick days – 26% reduction in healthcare costs – 30% reduction in workers comp and disability claims – Avg $5.93 to $1 savings-to-cost ratio! And… 28% workers more satisfied and loyal to employer

8 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. What is Offered? 50% of large employers offer health risk assessment – 62% provide incentives to complete – 75% employees complete 50% large employers and 13% small employers offer biometric screening – 56% offer incentive 20% reward or penalty for meeting outcomes $150 to $1,0000

9 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Wellness Programming 81% large employers and 49% small employers offer wellness programming – 38% of large companies and 15% of small companies offer financial incentive to participate 27% of these employers believe the incentive is ‘very effective’ at encouraging employees to participate – 68% of large employers and 32% small employers offer disease management programs

10 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Carrot or Stick (incentive or penalty) Review with legal counsel! 69% of employers offering wellness programs use a financial incentive (WELCOA, 2015)* – Cash or cash equivalents (i.e. gym memberships) – T-shirts, gift cards – Employee share of health plan premium, health reimbursement account contribution, adjustment to health plan cost-sharing (could be incentive or surcharge for not participating) 20% participation rate if no incentive

11 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Yes – Consult Legal Laws behind wellness programming and incentives – Health Insurance Portability and Accountability Act (HIPAA) and the Affordable Care Act (ACA) Nondiscrimination rules Participatory vs health contingent Limits for financial incentives or penalty for health contingent programs – GINA Cannot tie to family medical history

12 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Consult Legal Americans with Disability Act (ADA)enforced by EEOC – Workplace wellness programs –screenings and hra (medical history) must be voluntary – Financial incentive maximums include financial and in-kind value – Reasonable accommodation Equal access to all incentives for all employees

13 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Healthy Companies Connect to Healthy Communities Healthier Communities – Clean and safe neighborhoods – Clean air – Healthy food options Healthier Company – Healthier employees – A more educated, prepared workforce pool – Stronger local economy

14 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. So, where do you start? Lots of options; lots of regulation; company strategy; employee buy-in Soft start – education, bulletin board Anchor your wellness program – Screenings – Health risk assessment – Identify intervention – Brenda will be going into detail examples – Measure impact

15 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. What do we do at Gundersen? MyHealth Reward Program Health risk assessment and screening Pre-determined criteria Opportunity to achieve outcomes to meet criteria Cash payout 60-70% participation

16 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Programs to Meet Need and Interest Physical activity – Workout spaces and classes – Challenges – Walking trails – Active commute incentives and challenges – Community walks/runs Nicotine Cessation Programs Healthy eating – Weight management programs – Refrigerators and microwaves – Ice water – Healthy food options in cafeteria and vending machines/pricing incentives – 500 club and dining guide for local restaurants

17 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Programs to Meet Need and Interest Stress Management – EAP – HeartMath – DeStress – Resilience spaces/rooms Environment – Active commute incentives/challenges – Envision engagement – MVC Partnership Professional Development Education and information – Newsletters – Bathroom Banter – Enews – Designated web page – Manager information

18 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Outcomes With consistent participation, healthcare costs are declining

19 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Resources CDC WELCOA Gundersen Health System Mayo Local Y County Health Department Local Healthy Community initiative

20 Gundersen Lutheran Medical Center, Inc. | Gundersen Clinic, Ltd. Thank You Questions?


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