1. Disease Management in
Johnson & Johnson
Selwyn Bert Matthew
MHA628: Managed Care & Contractual Services
Professor: Dr. Benjamin Newsome
June 25, 2012
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2. Introduction
 The promotion of healthy lifestyle and the prevention
of disease through lifestyle changes holds great
promise for improving the health of people today and
in the future (Bodenheimer, 1999).
 Johnson & Johnson supports many disease
management efforts to promote health and wellness,
decrease healthcare costs, and reduce preventable
diseases. Their Disease Management (DM) programs
are designed to improve the health of people with
specific chronic conditions and to reduce healthcare
service use and costs associated with avoidable
complications.
A nutrient-rich diet can help keep your immune system strong, and a strong immune system is your be
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3. The Role of Preventing Disease
 Johnson & Johnson believes that giving people the
tools to stay healthy is as important as helping them
when they become sick.
 Prevention and wellness includes healthy behaviors
such as:
 Eating a well balanced diet,
 Regular physical activity.
 Annual doctor visits for physical examination.
 Following a doctor’s direction, like advice to quit
smoking.
By encouraging healthy lifestyles Johnson & Johnson believes that they can help reduce preventable d
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4. Preventing Chronic Disease
 In the US, the Centers for Disease Control &
Prevention (CDC), estimates that chronic diseases,
most of which are preventable, account for 75
percent of the $2 trillion spent on healthcare. Yet,
less than $10 per person per year is spent on
preventative health care.
 Chronic diseases, such as heart disease and
diabetes, are more common in the US compared to
European countries.
 33 percent of Americans are obese, compared to 17
percent in Europe.
 53 percent of Americans are smokers, while only 43
percent of Europeans smoke (Thorpe et al. 2007).
Many chronic diseases are preventable and can be managed by mitigating risk factors, making lifestyle
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5. Impact of chronic diseases
 Chronic diseases account for:
 81 percent of hospital admissions
 76 percent of physician visits
 91 percent of all prescriptions filled
 75 percent of the $2 trillion spent on
healthcare
 96 percent of Medicare Spending
 83 percent of Medicaid Spending
Chronically ill patients use the healthcare system more frequently than any other group. 5

6. Johnson & Johnson Actions
 Johnson & Johnson began promoting healthy lifestyle
among their employees many years ago.
 They established a system of company-wide
initiatives established to help their employees live
healthier lives. This program includes:
 Health assessment & counseling to help employees
understand and reduce their health risk.
 Opportunities for employees to be physically active
through activities and initiatives offered by the
company.
 Preventative screenings covered at 100 percent
under the Healthy People Medical Plan (Ozminkowski
et al. 2002).
This approach has helped to improve health and reduce costs, both for Johnson & Johnson6companies

7. Patient Incentives
 Johnson & Johnson’s patients’ incentives is grounded
in their belief that people will do things for which they
are rewarded and avoid those things that can cause
harm.
 Incentives play an important role in their disease
management program.
 Johnson and Johnson also utilizes disincentives,
which acts to discourage unhealthy behaviors.
 Members enrolled in the Healthy People program are
eligible for an annual $600 reduction in medical
insurance premiums, taken in cash or credited to a
Health Savings Account.
 30 percent deduction in any gym membership
(“Partnership to Fight Chronic Disease,” 2012).
The type of incentives, or disincentives, can vary widely, and usually depend on whom they7are targetin

8. Physician Incentives
 Physician incentives programs was designed
to facilitate:
 More rapid and complete member
identification and enrollment, and program
retention.
 Improved collaboration between clinicians
and plans members, and
 Higher quality and better chronic care
services delivery to plan members.
Physicians will receive a payment when they support the program by communicating its value to eligibl
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9. Physician Incentives
 Incentives are available for:
 Supporting the program and facilitating the
enrollment of more plan members in the
disease management program.
 Locating and furnishing contact information
for eligible patients; and
 Completing a chronic care assessment for
each eligible member on the clinician’s
patient roster.
participating clinicians can also receive incentives for helping to locate and furnish correct contact infor
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10. Physician Incentives
 Johnson & Johnson provides the following in way of
incentives for their physicians:
 Allows providers to share in the financial savings
associated with better care.
 Provides bonuses to primary care physicians
practicing in medical homes (or similar health care
delivery models), who exceed benchmarks for
consensus-based quality measures
 Providers that form Regional Accountable Care
Networks are eligible for gain sharing bonus
payments.
The outcomes of the DM incentives program will be used to evaluate future incentives for other program
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11. Case Management
 Johnson & Johnson offers Complex Case
Management programs to improve health care quality
and reduce medical expenses for those with complex
clinically advanced illnesses.
 Their Case Management programs helps members
get the special attention they need from a variety of
resources to help maintain their health and improve
quality of life.
 Specifically trained nurse case managers work
closely with members and their doctors to ensure
members receive appropriate and timely medical
services as cost effective as possible.
Providing the right care at the right time in complex health situations leads to financial savings for empl
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12. Case Management
 Areas Johnson & Johnson focuses on (but are not
limited to) for complex case management are:
 Cardiac care
 Diabetes
 High-risk pregnancy
 Oncology
 Respiratory
 Transplant
 Trauma
Johnson & Johnson Case Management provides whole-person care to optimize an individual's health s
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13. Facilities
 Johnson & Johnson believes that improved
outcomes, increases patient satisfaction and
lower costs are hallmarks of a well-integrated
and well-coordinated delivery system.
 Their facilities are all conducive to this belief
and are designed to enhance healing.
 Integrated care can improve patient health
and safety, particularly for those with chronic
conditions.
Johnson & Johnson is committed to improving the healthcare system by improving quality 13 patient s
and

14. Quality of Care
 Johnson & Johnson’s disease management
program that helped guide the care of
patients with chronic illnesses appears to
improve the quality of care.
 However, there is little empirical evidence that
their disease management efforts actually
saved money.
People often take for granted that DM prgrams work and save money because the concept seems very
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15. Prescription Benefits
 J & J disease management in coordination with
prescription benefit management is based on
establishing protocols for physicians and educating
patients not only on proper medication use, but also
lifestyle changes to control their disease.
 J & J continuously monitor prescription use and
communicates with providers throughout the delivery
process.
 Reports are generated regularly to provide
meaningful interpretation of data regarding analysis
of utilization, savings, and the impact of benefit
design.
DM will greatly benefit members with chronic illnesses and their companies will benefit from control of p
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16. Data use and informatics
 J & J technology-based disease management
applications have been proven to reduce
barriers to care, improve quality of care, and
cut administrative costs.
 These applications falls into three broad
categories:
 Data capture and monitoring systems
 Audiovisual communication systems; and
 Self-help education and training systems.
Deciding which system to use involves considering acceptability, usability, and technical factors.
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17. Conclusion
 Chronic diseases are ongoing illnesses
typically incurable, but can be preventable
and managed by mitigating the risk factors
associated with these diseases.
 Chronic diseases are the leading cause of
death and disability in the U.S.
 If unhealthy practices are eliminated these
chronic diseases can be controlled or even
reversed, saving countless lives and billions
of dollars in health care cost annually.
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18. References:
 Bodenheimer, T. (1999). Disease management Promise and
Pitfalls. The New England Journal of Medicine, 240(15):
1202-1205
 Ozminkowski, C. et al. (2002). Long-term impact of Johnson &
Johnson Health & Wellness Program on healthcare utilization
and expenditures. JOEM, 44 (January, 2002)
 Partnership to Fight Chronic Disease. Retrieved from,
http://www.fightchronicdiseases.org/crisis/what/index.cfm
 Thorpe, K. et al. (2007). Differences in disease prevalence as a
source of the US – European healthcare spending gap. Health
Affairs (Web exclusive). Retrieved from,
http://www.content.healthaffairs.org/cgi/content
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