Presentation on theme: "“Successful Workplace Wellness Program Case Study: Healthy University”"— Presentation transcript:
1 “Successful Workplace Wellness Program Case Study: Healthy University” Keith EdicDirector Wellness Services
2 Why Employee Wellness?The total cost of obesity to U.S. employers is $13 billion per year1Obese 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 drinkers2Workplace alcohol, tobacco, and other drug use costs over $100 billion each year3Workers’ compensation costs for a smoker averages $2,189 compared to only $176 for a nonsmoker4Job stress is estimated to cost $200 to $300 billion annually in absenteeism, tardiness, and lost productivity51 Cost Benefit Analysis and Report , Univ. of Michigan Health Management Research Center Rand Corporation, 20042 Six Reasons Why Health Promotion Makes Sense, Welcoa, 20023 Six Reasons Why Health Promotion Makes Sense, Welcoa, 20024 Cost Benefit Analysis and Report , Univ. of Michigan Health Management Research Ctr.5 July 2001, Journal of Occupational and Environmental Medicine
4 Every year your employees will: 69% of employees will get a cold, flu and/or other respiratory infection30% will sustain a minor injury24% will have a non-respiratory infection12% will have a digestive disorder
5 Emergency Department Visits 1.23 million ED visits in 200883 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 SummaryIncreased 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!
12 VHS Shift in Multiple Health Risk Prevalence Average annual cost:0-2 Risk Factors $2,1993-4 Risk Factors $3,4605+ Risk Factors $5,520Moving a single employee with 5+ RF to 0-2 RF =$3,321 in savingsIn 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 2010Having one employee quit smoking nets a cost savings of $3,391.$30,519 in savings in 2010BMI = 11 HU participants meeting that particular criteriaTobacco = 9 HU participants quitting
14 VH Employee Sick Leave Differential Collected actual sick leave hours used inInitially separated data into 2 groups:Healthy U Participants (HUP)Non Healthy U Participants (non HUP)Utilized VH badge numbers to match Healthy U participants.
19 Healthy U Participant Sick Leave Differential Savings Cost if not in HU Actual HUP Cost2008 $ 419,468 $ 156,4682009 $1,789,647 $ 797,8372010 $2,944,927 $1,484,675$5,154,042 $2,438,979Total 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 $2,794,129Differential 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 spentVHS cost with -1.6% increase - $29,151,143 Milliman Index 2010 cost increase of 7.8% - $31,945,272VHS cost differential $31,945,272 - $29,151,143 = $2,794,129Shift in Multiple Health Risk Prevalence $60,365Positive shift in number of employees with 01, 2-3, 4+ risk factors minus negative shift in risk factors0-2 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 $1,460,252Healthy U participants (HUP) cost vs. Non Healthy U participants (NHUP) costIF HUP incurred same cost as NHUP = would result in another $1.46 Million spentHUP cost - $1,484, NHUP cost - $2,944,927HUP cost differential $2,944,927 - $1,484,675 = $1,460,252(VH actual sick leave usage in 2010)Total Cost Avoidance $4,360,665Total Cost of Wellness Services in $593,209Total 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 companiesPersonal Health Records (WELCOA)95% of diagnosis is based on medical history (Association for American Physicians and Surgeons)Primary Care PhysicianLimit unnecessary visits to the ED