Why Wellness Can Health be a Business       Strategy?William B. Baun, EPD, CWP, FAWHPWellness Officer, MD Anderson Cancer ...
Wellness – a lifelong journey     Worksite Wellness – an organizedand an active process of making   program designed to as...
Lifestyle Risk Factors    Direct Health Impact•Physical activity        •Medical problems•Stress                   •Health...
The State of Working America• USA has highest per person               • 55-74 employed population =  healthcare cost of i...
• 7 out of 10 deaths among Americans each year are from chronic diseases.  Heart disease, cancer and stroke account for mo...
Costs                                                                                  $10,095$12,000                     ...
Direct Costs:Indirect                               Medical & Pharmacycosts abigger partof the                            ...
Direct Medical Costs                  • Medical                  • Pharmaceutical                                         ...
•   Is there a “business case”    to be made for worksite    wellness?•   What is the evidence and    is it compelling?•  ...
Health Risk Measure        High Risk CriteriaAlcohol                    More than 14 drinks/weekBlood Pressure            ...
The Five Fundamental Pillarsof the Health ManagementStrategy• Senior leadership creates the vision• Operations leadership ...
1 Year Transition   Natural Flow           Prevention PlanHigh to moderate             31%                     48.70%Moder...
•   Henke (2011) Recent Experience In Health Promotion at Johnson & Johnson    Lower Health Spending, Strong Return on Inv...
•   Baicker (2010) meta analysis of literature shows    every wellness $ spend reduces absenteeism by    $2.73•   Rodbard ...
• Gibson (2010) cost sharing adherence toanti-diabetic medication, increase adherencedecrease costs in emergency room visi...
•   Palumbo (2010) workplace wellness Tai Chi classes cost effective option for    older female workers, 3% increase in pr...
•   Bakker (2010) Canadian cancer nurses view of recruitment – retention as a    continuum / developing an environment fac...
•   Is there a “business    case” to be made for    worksite wellness?•   What is the evidence    and is it compelling?•  ...
Categories of Worksite Program EvaluationBasicProcess – qualitative & quantitative look at programming processImpact – ove...
•   Pelletier (2011) A Review and Analysis of the Clinical and Cost-    effectiveness: Studies of Comprehensive Health Pro...
ROI studies of worksite wellness  programs:                        ROI estimates in these nine                            ...
•   Is there a “business    case” to be made for    worksite wellness?•   What is the evidence    and is it compelling?•  ...
But how?Who, what, when,where, how often?What results?When?
FamiliesPeers / Buddies                  Individuals                                     Communities      Teams           ...
Core Factors Impacting            Behavior Change &                    Culture of Health  Individual   Opportunity 40%  Be...
Both corporate climate andculture have significant influencein shaping health behaviors andpractices!
Born from years of successful safety culturesCulture of safety is one in which employee behavior is guided bysafety proced...
Alcon Laboratories“With a mission of cultivating a culture of health, Alcon has supportedemployee wellness since 1993. Beg...
Harvard Business Review, December 2010Berry, Mirabito, BaunSix Essential Hard Return PillarsRegardless of Organizations Si...
• C-suite – “walks the talk”, policies &mandates, shows an interest in employeeswellness behaviors – “how’s your wellness”...
• Planning and Patience – look for way topermeate the culture with wellness,emphasize early communications & clearexplanat...
• More than Cholesterol – think beyonddiet & exercise, stress & depression majorsources of lost productivity• Individualiz...
• True On-Site Integration –carefully consider yourwellness model & how best tointegrate it across yourcompany culture    ...
• Internal Partnerships – helpwellness gain credibility• External Partnerships – enablestaff to benefit from vendorcompete...
• Tailor Messages - to fit                       theintended audience, hone effectivepractices overtime                   ...
• Multilevel Leadership• Alignment• Scope, Relevance, and Quality• Accessibility• Partnerships• Communications
Sustain behavior  Engage employees                change through  in a wellness                   appropriate program  par...
Why Wellness     Can Health be a Business           Strategy?    YOU BET! As long as:    * Health becomes a value / part o...
Upcoming SlideShare
Loading in …5
×

Why Wellness? Can Health Really Be A Business Strategy?

1,409 views

Published on

For more slides from the San Diego 2012 Corporate Wellness Symposium visit, www.intercaresolutions.com/cws/slidelibrary

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,409
On SlideShare
0
From Embeds
0
Number of Embeds
20
Actions
Shares
0
Downloads
0
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Why Wellness? Can Health Really Be A Business Strategy?

  1. 1. Why Wellness Can Health be a Business Strategy?William B. Baun, EPD, CWP, FAWHPWellness Officer, MD Anderson Cancer CenterPresident, National Wellness Institutewbaun@mdandeson.org/ 713-745-6927
  2. 2. Wellness – a lifelong journey Worksite Wellness – an organizedand an active process of making program designed to assist employeeschoices and commitments to be and their family in behavior changehealthy and well. that reduces health risks, improves quality of life and maximizes personal potential and impacts the bottom-line.
  3. 3. Lifestyle Risk Factors Direct Health Impact•Physical activity •Medical problems•Stress •Health status•Smoking•Nutrition•Seat Belts•Multiple Health Risks Indirect Outcome •Health care utilizationClinical Risk Factors •Health care cost•Obesity •Absenteeism•Blood pressure •Employee productivity•Cholesterol •Job/life satisfaction•Blood sugar •Other•Musculoskeletal *Anderson, D.R. (AJHP, 2004)
  4. 4. The State of Working America• USA has highest per person • 55-74 employed population = healthcare cost of industrialized 70.1% employed world and ranked 37th of 91 countries, $1 out of $7 spent on • 74+ = 12.5% employed medical goods or services • 2/3 of 55-74 outside of• 1% of population account for workforce consider themselves ill 30% of costs and 5% account for 70% • Employers health benefits cover 3/5 nonelderly• 35% deaths attributed to poor diet, smoking, physical • Healthcare spending by 2015 inactivity predicted at $4T, 20%GDP, $12,320Healthy Workplace 2010 & Beyond PFP 2009
  5. 5. • 7 out of 10 deaths among Americans each year are from chronic diseases. Heart disease, cancer and stroke account for more than 50% of all deaths each year• In 2005, 133 million Americans – almost 1 out of every 2 adults – had at least one chronic illness• Obesity has become a major health concern. 1 in every 3 adults is obese3 and almost 1 in 5 youth between the ages of 6 and 19 is obese (BMI ≥ 95th percentile of the CDC growth chart)• About one-fourth of people with chronic conditions have one or more daily activity limitations• Arthritis is the most common cause of disability, with nearly 19 million Americans reporting activity limitations• Diabetes continues to be the leading cause of kidney failure, non-traumatic lower-extremity amputations, and blindness among adults, aged 20-74
  6. 6. Costs $10,095$12,000 $9,221$10,000 $6,664 $7,268 $8,000 $4,130 $5,445 $6,000 $3,432 $3,601 $4,000 $2,741 $4,319 5+ Risks $2,025 $3,366 $2,000 3-4 Risks $1,247 $1,515 $1,920Age 0-2 Risks $0 <35 35-44 45-54 55-64 65+StayWell 2006 (N = 43,687)
  7. 7. Direct Costs:Indirect Medical & Pharmacycosts abigger partof the Workers’pie….. Compensation STD Absenteeism Presenteeism LTD Time Away from WorkEdington & Burton (2003)
  8. 8. Direct Medical Costs • Medical • Pharmaceutical Visible CostsIndirect Costs• Presenteeism• Short Term Disability Non-Visible• Long Term Disability Costs• Absenteeism• Workers Compensation Indirect Costs represents 2-3 times Direct Medical Costs
  9. 9. • Is there a “business case” to be made for worksite wellness?• What is the evidence and is it compelling?• Can we develop an ROI argument?
  10. 10. Health Risk Measure High Risk CriteriaAlcohol More than 14 drinks/weekBlood Pressure Systolic >139 or Diastolic >89 mmHgBody Weight BMI 27.5Cholesterol Greater than 239 mg/dlHDL Less than 35 mg/dlExisting Medical Problem Heart, Cancer, Diabetes, StrokeIllness Days >5 days last yearLife Satisfaction Partly or not satisfiedPerception of Health Fair or poorPhysical Activity Less than one time/weekSafety Belt Usage Using safety belt less than 100% of timeSmoking Current smokerStress High Edington (2011) AJHP
  11. 11. The Five Fundamental Pillarsof the Health ManagementStrategy• Senior leadership creates the vision• Operations leadership aligns the environment with the vision• Self-leadership creates their personal health and performance environment• Reward action and touch points• Quality assurance measures progress toward a champion company• Keep the healthy, healthy
  12. 12. 1 Year Transition Natural Flow Prevention PlanHigh to moderate 31% 48.70%Moderate to low 35% 46.35%High to low 21% 15.65%Low to low 70% 87.33%Low to High 5% .62%Moderate to high 20% 7.66%Moderate to moderate 45% 45.98%High to high 63% 35.65% Loeppke, Edington, Beg (2010) PHM
  13. 13. • Henke (2011) Recent Experience In Health Promotion at Johnson & Johnson Lower Health Spending, Strong Return on Investment• Trogdon (2009) Workplace obesity interventions result in a reduction of $90 for every 5% of body weight• Naydeck (2008) Highmark wellness program four year cost savings $1,335,524 showing programming lowers rate of healthcare costs• Baker (2008) over 1 year, 7 of 10 health risks decreased for a total savings of $311,755, 59% attributed to reduced healthcare expenditures• Dall DOD Health Risks Costs (2007) tobacco use $564m, obesity $1.1b, alcohol $425m / non-medical excess of $965m
  14. 14. • Baicker (2010) meta analysis of literature shows every wellness $ spend reduces absenteeism by $2.73• Rodbard (2009) 15,132 ~ greatest impairment of work and daily activities among obese individuals• Kuoppala (2008) evidence that health promotion decreases sickness absence / range .1 – 1.57• Bachman (2007) health promotion interventions provide cost savings from decreased absenteeism rates• Halpern (2007) impact of a smoking cessation program resulted in a total saving in year 4 and included reduced absenteeism
  15. 15. • Gibson (2010) cost sharing adherence toanti-diabetic medication, increase adherencedecrease costs in emergency room visits andSTD• Lambeek (2010) integrated care programsreduce chronic low back in working &private life• Jover (2009) early cognitive-behavioraltreatment complementary to rheumatologiccare reduces duration of relapse• Burton / Financial Service (2007)antidepressant medication adherence, lowcompliance resulted in almost 40% increasein chance of STD
  16. 16. • Palumbo (2010) workplace wellness Tai Chi classes cost effective option for older female workers, 3% increase in productivity• Kirsten (2010) a global perspective making the link between health and productivity• Katcher (2010) vegetarian / vegan diets effective in treating several chronic diseases, vegan group reports 40-60% decrease in health-related productivity impairments• Goetzel (2009) factor analysis identified relationship between increase in health risks and > presenteeism• Schultz (2009) the cost of presenteeism is much larger that the costs of direct healthcare• Loeppke (2009) strong link between health and productivity / integrating productivity and health data leads to development of effective programming
  17. 17. • Bakker (2010) Canadian cancer nurses view of recruitment – retention as a continuum / developing an environment facilitates culture change• O’Brien (2010) by creating a generally healthier work environment, data suggests that these programs will also have a positive effect on recruitment and retention.• Reed (2009) case study of creating a healthy workplace in a surgical trauma unit essential in recruitment and retention• Angeletti (2008) workplace lactation program – a nursing friendly environment impacts recruitment, retention, productivity efforts• Stichler (2005) recruitment & retention strategies that create the best workplace for women’s services, culture of excellence, job satisfaction measured by social climate, relationships, job stress, resources, control, etc• Tsai / Baun (1987) relationship of employee turnover to exercise adherence in a corporate setting
  18. 18. • Is there a “business case” to be made for worksite wellness?• What is the evidence and is it compelling?• Can we develop an ROI argument?
  19. 19. Categories of Worksite Program EvaluationBasicProcess – qualitative & quantitative look at programming processImpact – overall effectiveness indicating immediate effectsOutcome – stated long-term objective & goals metProject EffectivenessClaims analysis Chenoweth (2011) EvaluatingRisk factor costs appraisal Worksite Health PromotionFinancial AnalysisForecasting / cost avoidance benefitsCost effectivenessROI Return on investment (tangible financial benefits / tangible costs)Cost benefit analysis (tangible & intangible benefits / tangible & intangible costs)
  20. 20. • Pelletier (2011) A Review and Analysis of the Clinical and Cost- effectiveness: Studies of Comprehensive Health Promotion and Disease Management Programs at the Worksite• Schaafsma (2010) 37 studies looking at back pain / analysis found severe back pain improvements gained through physical activity programming• Baicker (2010) Workplace Wellness Programs Can Generate Savings, $3.27 medical and $2.73 absenteeism• Blackburn (2009) workplace weight-loss programs are a win-win with a $2.10 ROI• Trogdon (2009) 5% weight loss would result in a annual cost (medical/absenteeism) or $90• Conn (2009) These findings document that some workplace physical activity interventions can improve both health and important worksite outcomes
  21. 21. ROI studies of worksite wellness programs: ROI estimates in these nine studies ranged from $1.40 - – Canada and North $4.90 in savings per dollar American Life spent on these programs. – Chevron Corporation – Dow Chemical Median ROI was $3 in – City of Mesa, Arizona – General Mills benefits per dollar spent on – General Motors program. – Highmark – Johnson & Johnson Sample sizes ranged from – Pacific Bell 500 - 50,000 subjects in – Procter and Gamble these studies. – Tenneco
  22. 22. • Is there a “business case” to be made for worksite wellness?• What is the evidence and is it compelling?• Can we develop an ROI argument?
  23. 23. But how?Who, what, when,where, how often?What results?When?
  24. 24. FamiliesPeers / Buddies Individuals Communities Teams Organizations
  25. 25. Core Factors Impacting Behavior Change & Culture of Health Individual Opportunity 40% Behavior Self confidence Change Action Skill 25% and Support Behavioral efficacy Creating Self efficacy Motivation readiness 30% Culture of Knowledge Health Awareness 5%
  26. 26. Both corporate climate andculture have significant influencein shaping health behaviors andpractices!
  27. 27. Born from years of successful safety culturesCulture of safety is one in which employee behavior is guided bysafety procedures, norms, and supports that encourage a safeworking environment. Safety behaviors are incorporated intothe vision and goals of leadership.
  28. 28. Alcon Laboratories“With a mission of cultivating a culture of health, Alcon has supportedemployee wellness since 1993. Beginning with healthy nutrition and fitnessactivities, Alcon’s program has since grown and expanded to incorporate abroader set of initiatives coupled with incentives. In 2010, Alcon’semployees participated in an average of 31 unique wellness activities with63% completing a health assessment and biometric screenings.”Eastman Chemicals"Eastman is honored to receive the C. Everett Koop award in recognitionof the companys efforts in building a culture of health," said Edna Kinner,Vice President of Human Resources. "This award not only reflectsEastmans commitment to health improvement, but the significantinvolvement of Eastman men and women with their personal health."
  29. 29. Harvard Business Review, December 2010Berry, Mirabito, BaunSix Essential Hard Return PillarsRegardless of Organizations Size• Multilevel Leadership• Alignment• Scope, Relevance, and Quality “We manage what• Accessibility we measure.”• Partnerships Are you measuring things that have high• Communications value in your wellness programs?
  30. 30. • C-suite – “walks the talk”, policies &mandates, shows an interest in employeeswellness behaviors – “how’s your wellness”• Middle Managers – shaping mini-wellnesscultures• Wellness Program Managers – expert whodevelops, coordinates a comprehensiveprogram connected to company culture andstrategies• Wellness Champions – volunteer wellnessambassadors serving as on-the-groundencouragement, education & mentoring
  31. 31. • Planning and Patience – look for way topermeate the culture with wellness,emphasize early communications & clearexplanations, develop a long-termcomprehensive strategy• Carrots not Sticks – positive incentivespromote trust & provide employeeschoices• Complement to Business Practices –wellness programming must makebusiness sense // sustaining a healthy,talented, satisfied labor pool is a matter ofcorporate responsibility & businessnecessity
  32. 32. • More than Cholesterol – think beyonddiet & exercise, stress & depression majorsources of lost productivity• Individualization – online health riskassessment combined with biometric data• Signature Program – high profile, highquality initiative fosters employee pride &involvement• Fun – never forget the pleasurableprinciples in wellness initiatives• High Standards – health related servicesare personal, employees won’t usesubstandard services, “no one will comefor free and lousy”
  33. 33. • True On-Site Integration –carefully consider yourwellness model & how best tointegrate it across yourcompany culture Facilities• Going Mobile – high techtools (virtual wellnessprograms & online resources)not only deliver the wellnessmessage & provideindividuals tracking tools &individual reports, but alsocompliment the high touchprograms that uniteindividuals in a culture ofhealth
  34. 34. • Internal Partnerships – helpwellness gain credibility• External Partnerships – enablestaff to benefit from vendorcompetencies & infrastructurewithout the extra investment• Leveraging Resources – internal& external partnerships help grow& maintain comprehensiveprograms
  35. 35. • Tailor Messages - to fit theintended audience, hone effectivepractices overtime Mass Marketing• Media Diversity – use a variety ofdifferent communication tools toreach the audience• Embedded Wellness Clues –wellness needs to become a “viral Developing Socialthing” spreading throughout the Networksworkplace
  36. 36. • Multilevel Leadership• Alignment• Scope, Relevance, and Quality• Accessibility• Partnerships• Communications
  37. 37. Sustain behavior Engage employees change through in a wellness appropriate program partnership design / deliveryIndividuals / Teams / Organization Design / deliver programs that facilitate employee Accountability for better health & wellness practices
  38. 38. Why Wellness Can Health be a Business Strategy? YOU BET! As long as: * Health becomes a value / part of culture * Total health becomes a benefit not a cost * Leadership model expects Engagement Sustainability AccountabilityWilliam B. Baun, EPD, CWP, FAWHPWellness Officer, MD Anderson Cancer CenterPresident, National Wellness Institutewbaun@mdandeson.org/ 713-745-6927

×