IBI CFO Research On the Brink of Change …… ..........……………………. How CFOs View Investments in Health & Productivity IBI Research - 2002 Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002

Key Insights: CFO’s interest in healthcare goes well beyond controlling costs They strongly connect health to productivity to the bottom line but have more difficulty linking benefits programs to the bottom line CFOs use different measures to gauge success than do benefits managers, and CFO terms should be used to gain their attention Workforce productivity changes are the way to get a CFO’s attention CFOs appreciate the potential positive influence that healthcare providers and a pharmaceutical benefit can have on health and productivity With the right information, keyed to how they think, CFOs can be expected to understand the importance of investing in workforce health and effective benefits delivery The full study is available to members of IBI. Commentary is available in Notes view. Purpose: 1 st of two CFO surveys identifies their willingness to link health and employee benefits to the bottom line and what would strengthen the connection IBI CFO Research

Key Insights:

CFO’s interest in healthcare goes well beyond controlling costs

They strongly connect health to productivity to the bottom line but have more difficulty linking benefits programs to the bottom line

CFOs use different measures to gauge success than do benefits managers, and CFO terms should be used to gain their attention

Workforce productivity changes are the way to get a CFO’s attention

CFOs appreciate the potential positive influence that healthcare providers and a pharmaceutical benefit can have on health and productivity

With the right information, keyed to how they think, CFOs can be expected to understand the importance of investing in workforce health and effective benefits delivery

The full study is available to members of IBI. Commentary is available in Notes view.

Linking Health, Productivity & the Bottom Line Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002

CFOs Don’t Attribute Financial Performance to Benefits Programs Important for only 25% Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002

A Key Disconnect – Indicators of Performance Cash flow Revenue growth Earnings growth Program cost Employee satisfaction Employee retention CFOs Benefits Managers Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002

Cash flow

Revenue growth

Earnings growth

Program cost

Employee satisfaction

Employee retention

CFOs Do Link Workforce Productivity to Financials Important for 79% Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002

Productivity Improvement to Change Benefits Programs Of these, 69% need 6% or less Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002

Effect of Health Plans, Physicians and PBMs on CFOs’ Productivity Goals Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002

Prescription Drug Impact on Health-Related Costs Source: On the Brink of Change: How CFOs View Investments in Health and Productivity , Integrated Benefits Institute, 2002