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Ron Loeppke - Leveraging the Tools of Technology with the Power of Prevention
1. Leveraging the Tools of Technology with the Power of Prevention
Ron Loeppke, MD, MPH, FACOEM, FACPM
U.S. Preventive Medicine
2. Content Attestation and Disclosure
I am an employee and shareholder of U.S. Preventive Medicine
and the content in my presentation, is unbiased,
and to the extent possible, evidence-based.
3. Overview
ďŽ Articulate how to leverage the Power of Prevention with the Tools of Technology
ďŽ Delineate the Converging Trends that are advancing the value of population
health management for Employers, ACOs/PCMHs , Physicians and Consumers
ďŽ Review the solid Business Case for why employers are investing in Prevention
and Population Health Management
ďŽ Analyze published outcome studies and ROIs from comprehensive Prevention
and Population Health Management initiatives.
4. Converging Trends Driving the Demand for Prevention
ďŽ Epidemiological Trends
ďŽ Political Trends
ďŽ Cultural Trends
ďŽ Financial Trends
5. Converging Trends Driving the Demand for Prevention
Epidemiological Trends:
⢠The Growing Economic Burden of Illness and Health Risks in Society
6. Healthcare Costs: Which Matters More
Age or Health Risk?
Annual Medical Costs
$11,965
$11,909
$10,785
$7,991
$12,000
$5,114
$8,927
$5,710
$9,000
$7,989
$6,625
$4,620
$6,000
$3,353
$2,565
$5,756
$3,000
$3,734
$1,776
0 $2,193
$4,613
$2,740
$0
19-34
35-44
45-54
55-64
Age Range
Edington. AJHP. 15(5):341-349, 2001
65-74
75+
High
Med Risk
Low
7. As Health Risks go
so go Health Costs
Dr. Dee Edington
Zero Trends
8. Converging Trends Driving the Demand for Prevention
Epidemiological Trends:
⢠The Growing Burden of Illness and Burden of Health Risks in Society
⢠The Positive Potential of the Compression of Morbidity
9. Compression of Morbidity
Live Healthier Longer and Die more Suddenly at Lower Cost
Health
âSudden Death in Overtimeâ
âAcceptable QOLâ
âDisabilityâ
Age
The compression of morbidity relates to postponing the age of onset of
morbidity, disability and cumulative health costs--even though life expectancy is
increased--largely by reducing health risks
Hubert, Bloch, Oehlert and Fries. Lifestyle Habits and Compression of Morbidity.
J Gerontol A Biol Sci Med. June, 2002; 57 (6) M347-51
10. Converging Trends Driving the Demand for Prevention
Epidemiological Trends:
⢠The Growing Burden of Illness and Burden of Health Risks in Society
⢠Compression of Morbidity
Political Trends:
⢠Bipartisan Support for Prevention
⢠Aligning Incentives among Consumers, Providers, Employers
⢠ACOs/P4P/PCMH⌠and ultimately the Consumer Centered Health Home
2/4/2011
10
11. Focusing on the âHealthâ in Health Reform Legislation
ďŽ National Prevention Strategy and Council
ďŽ Employer-Based Wellness Program Incentives for Employees
ďŽ Grants for Small Businesses to Provide Workplace Wellness
ďŽ ACOs and PCMHs
ďŽ Medicare Coverage of Annual Wellness Visit
ďŽ Medicare Better Health Rewards Program
12. Converging Trends Driving the Demand for Prevention
Epidemiological Trends:
⢠The Growing Burden of Illness and Burden of Health Risks in Society
⢠Compression of Morbidity
Political Trends:
⢠Aligning Incentives among Consumers, Providers, Employers
⢠ACOs/P4P/PCMHâŚConsumer Centered Health Home
Cultural Trends:
⢠Wellness is the new Green: Ultimate Personal Sustainability
⢠Social Networking/Game Theory Innovations in Healthcare
13. Gamification in Healthcare
ďŽ Since 2004 One Game has
been played 50 Billion hours
(5.93 Million Years)
ďŽ 183 M people are âGamersâ
(> 13 hours per week)
ďŽ 97% of Youth play regularly
ďŽ 25% of > 50 y/o play regularly
ďŽ Future Nobel Prizes in
Medicine
Copyright 2010 U.S. Preventive Medicine
14. Gamers Succeed Where Scientists Fail:
Molecular Structure of Retrovirus Enzyme Solved, Doors Open to New AIDS Drug
ďŽ Science Daily (Sep. 19, 2011) â Gamers have solved the
structure of a retrovirus enzyme whose configuration had
stumped scientists for more than a decade.
ďŽ The gamers achieved their discovery by playing Foldit,
an online game that allows players to collaborate and
compete in predicting the structure of protein molecules.
ďŽ They did it in only three weeks..
ďŽ The Center for Game Science, in the Department of Computer Science and
Engineering at the University of Washington, is where gamers, students, scientists
and scholars apply gaming principles and play games (like Foldit) to innovate
breakthroughs in fields as diverse as biology, education and nanotechnology.
15. Converging Trends Driving the Demand for Prevention
Epidemiological Trends:
⢠The Growing Burden of Illness and Burden of Health Risks in Society
⢠Compression of Morbidity
Political Trends:
⢠Aligning Incentives among Consumers, Providers, Employers
⢠ACOs/P4P/PCMHâŚConsumer Centered Health Home
Cultural Trends:
⢠Wellness is the new Green: The Ultimate Personal Sustainability Index
⢠Social Networking/Game Theory Innovations in Wellness
⢠Mobile/Wireless Tech, EMRs, etc. Transforming the Healthcare Industry
16. How the Digital Revolution
will create better healthcare
Dr. Topol is a Cardiologist at Scripps and Editorâin-Chief of Medscape
17. Mobile Technology: The Worldâs most ubiquitous platform
Globally, more people have access to cell phones than
drinking water, electricity or a toothbrush.
*Source: IMS Report: The World Market for Internet Connected Devices, 2012.
17
18. TRANSFORMING
HEALTHCARE
By 2020, ~160 million Americans monitored and
treated remotely for at least one chronic condition
Johns Hopkins University. Chronic Conditions: Making the Case for Ongoing Care. Retrieved
10/20/12, from http://www.partnershipforsolutions.org/DMS/files/chronicbook2004.pdf
18
19. Prescription Apps - Wireless Engagement
ďŽ Poised to transform healthcare as we know it
ďŽ Always with you, always on
ďŽ Perpetual Connectivity/Communication
â Information into Knowledge
â Reminders/Notifications
â Knowledge into Action
â Clinical and Social support
â Action into Results
Mobile Health App
19
20. Mobile Health Manager App: In Development
Pedometers
Mobile Fitness Apps
Glucose Meters
Blood Pressure
Devices
Tracking
Devices
Activity
Armbands
Sleep Managers
Mobile Weight Loss Apps
Scales
Labs
20
23. Mobile Diabetes Manager: Physician Summary Report
ďŽ Glucose
â
â
â
â
â
Target Range
% on Target
Highest/Lowest reading
Avg Glucose overall
Avg pre/post meal glucose
ďŽ Weight
â Current + Goal
ďŽ Nutrition
â Avg calories + carbs / day
ďŽ Medication
â Current List
â # missed doses
â % adherence
ďŽ Diabetes Health Checklist Items
ďŽ Exercise
â Avg weekly minutes
â % Goal
â Most frequent activity
23
24. Converging Trends Driving the Demand for Prevention
Epidemiological Trends:
⢠The Growing Burden of Illness and Burden of Health Risks in Society
⢠Compression of Morbidity
Political Trends:
⢠Aligning Incentives among Consumers, Providers, Employers
⢠ACOs/P4P/PCMHâŚConsumer Centered Health Home
Cultural Trends:
⢠Wellness is the new Green: The Ultimate Personal Sustainability
⢠Social Networking/Game Theory Innovations in Wellness
⢠Mobile/Wireless Tech, e-PHRs, etc. Transforming the Healthcare Industry
Financial Trends
⢠The Problem: The Cost Crisis is largely due to the Health Crisis
25. Patients with chronic diseases account for 75% of U.S. healthcare costs
Of the $2 trillion spent on U.S. health care
Of every dollar spentâŚ
âŚ75 cents went towards treating patients with
one or more chronic diseases
In public programs, treatment of chronic diseases constitute an
even higher portion of spending:
More than
96 cents in
âŚand
83 cents in Medicaid
MedicareâŚ
âThe United States cannot effectively address escalating health care costs
without addressing the problem of chronic diseases.â
-- Centers for Disease Control and Prevention
10/29/2013
Proprietary and Confidential
U.S. Preventive Medicine
25
26. Converging Trends Driving the Demand for Prevention
Epidemiological Trends:
⢠The Growing Burden of Illness and Burden of Health Risks in Society
⢠Compression of Morbidity
Political Trends:
⢠Aligning Incentives among Consumers, Providers, Employers
⢠ACOs/P4P/PCMHâŚConsumer Centered Health Home
Cultural Trends:
⢠Wellness is the new Green: The Ultimate Personal Sustainability
⢠Social Networking/Game Theory Innovations in Wellness
⢠Mobile/Wireless Tech, e-PHRs, etc. Transforming the Healthcare Industry
Financial Trends
⢠The Problem: The Cost Crisis is due in large part to the Health Crisis
⢠The Bigger Problem: Total Cost Impact of Poor Health to Employers
27. The Bigger Problem: The Full Cost of Poor Health
Personal Health Costs
Medical Care
Pharmaceutical costs
Productivity Costs
Absenteeism
Short-term Disability
Long-term Disability
Iceberg of Full Costs
from Poor Health
Presenteeism
Overtime
Turnover
Temporary Staffing
Administrative Costs
Replacement Training
Off-Site Travel for Care
Customer Dissatisfaction
Variable Product Quality
Sources: Loeppke, R., et al., "Health and Productivity as a Business Strategy: A Multi-Employer Study", JOEM.2009; 51(4):411-428. and Edington
DW, Burton WN. Health and Productivity. In McCunney RJ, Editor. A Practical Approach to Occupational and Environmental Medicine. 3rd edition.
Philadelphia, PA. Lippincott, Williams and Wilkens; 2003: 40-152
28. Evidence Based Preventive Medicine is a Key Solution
Centers for Disease Control and Prevention has found that:
ďŽ 80% of Heart Disease and Type II Diabetes as well as
ďŽ 40% of Cancer are Preventable
â if people just:
Âť stopped smoking,
Âť ate healthy and
Âť exercised
31. Whole Population Health Management
Wellness/Health Promotion
Early Detection
Early Intervention/Care Mgt
Total Population
Low Risk
Medium Risk
High Risk
LS Risk
DM Risk
Population of One
32. The Fundamental Formula for Success
BH + BHC = LC
Better Health + Better Health Care = Lower Cost
When Financial Risk is linked to Clinical Risk
Outcomes will Drive Incomes
Population Health Management is the Key
33. Health System Primary Care Innovation/Value Based Care Model:
Empowering the Dr-Pt Relationship
Health Inventory
& Biometric
Screenings
Health Coaching/
Concierge
Meet with
Primary Care
Physician
âTriple Aimâ
and
Physician/Clinician
Satisfaction
Population Health
Management
IT Integrator Platform
Advanced Medical Home
Model and
Team Based Care
(incl. EHR)
Care
Coordination for
Chronic
Conditions
Pharmacy
Utilization &
Compliance
36. Consumer and Provider Prevention Score
Consumer Prevention Score
Based on an individualâs
assessment and actions
towards a healthy lifestyle
685
Provider Prevention Score
Bob Smith
Sue Jones
750
722
Steve Wonder
844
Based on Dr. Welbyâs aggregate
score of patients managed
37. Aligned Incentives with Physician and Employee/Consumer
ďŽ Example of Points for Physicians and Patients to receive $ incentive:
Evidence Based Medicine Quality Criteria
Quality Points
Preventive screenings (e.g. USPTF age/gender specific
recommended mammograms, colon cancer screenings)
2
Disease-specific treatment and monitoring â
eg. Diabetics receiving HbA1C at least every 6 months
3
Diabetics â Maintain participation in Disease Management
or Lifestyle Management program per criteria
5
Physician Reviewing HRA with Patient
2
ďŽ Performance Savings Bonus split in thirds (Drs/Pts/Employer)
ďŽ Added $1.00 of Abs/Pres Savings for every $1.00 Med/Rx Savings
ďŽ Quality Points Value for Physicians and Patients
ď 1 Quality Point = $19.39
Loeppke R, Nicholson S, et al. âThe impact of an integrated population health enhancement and disease management program on
employee health risk, health conditions and productivityâ. Population Health Management. 2008: 11(6); 287-296.
39. Overall Health Risk Reduction with 2 Year TPP Participation
Net Movement of Health Risk Levels in Cohort
Baseline vs Year 2 on Prevention Plan
N = 7,804
71%
60%
5531
4666
29%
23%
2291
1775
11%
847
Low
Moderate
6%
498
High
Loeppke, R; Edington, D; Bender, J; Reynolds, A. âThe Association of Technology in a Workplace
Wellness Program with Health Risk Factor Reductionâ Journal of Occupational and Environmental Medicine: 3/2013
40. Health Risk Reductions with 2 Year TPP Participation (Total N = 7,804)
# People and % of the
# People and % of the
Baseline High Risk
Baseline High Risk Group
Group remaining High
Reducing Risk out of
Risk after
High Risk after
Year 2
Year 2
Individual
Risks
# People and % of overall
population (7804) with
High Risk in Baseline
Year
Blood Pressure
923 (12%)
(M=142/90)
179 (19%)
(M=143/90)
744 (81%)
(M=123/77)
HDL
328 (4%)
(M=31)
134 (41%)
(M=30)
194 (59%)
(M=41)
Cholesterol
836 (11%)
(M=263)
353 (42%)
(M=265)
483 (58%)
(M=208)
Fasting Blood
Glucose
1616 (21%)
(M=116)
926 (57%)
(M=123)
690 (43%)
(M=92)
Body Mass
Index (BMI)
3338 (43%)
(M=33)
2937 (82%)
(M=34)
401 (12%)
(M=26)
Loeppke, R; Edington, D; Bender, J; Reynolds, A. âThe Association of Technology in a Workplace
Wellness Program with Health Risk Factor Reductionâ Journal of Occupational and Environmental Medicine: 3/2013
41. Diabetes Care Management:
Inpatient Days per 1000 Diabetic Members per Year
N = 299
1361
1400
1200
1000
800
600
400
458
301
261
200
0
Proprietary and Confidential U.S. Preventive Medicine
42. Diabetes Care Management:
Total Costs Per Diabetic Per Month across 3 Years in Program
N = 299
$1,400.00
$1,200.00
$1,000.00
$800.00
$1,262.15
$849.17
$691.85
$667.20
$600.00
$400.00
$200.00
$0.00
42
43. The Business Value of
Better Health and Productivity
ďŽ Market cap value impact from regaining 1 Day of productivity per year per FTE
ďŽ 58,000 employees, current 8 Days per FTE of health-related productivity loss
1 Day per FTE of Regained Productivity =
$18.8M EBITDA impact
13x (EBITDA Multiple)
$244.4M estimated market cap increase
á 292M shares
$0.84 in additional per share value
Loeppke R. âThe Value of Health and the Power of Preventionâ. Int J Workplace Health Manage. 2008; 1(2)95-108.
44. Wellness Works and Prevention Pays
Average ROI
$3.27
Med/Rx
Savings
+
$2.73
Absenteeism
Savings
$6.00 saved
for every $1.00 invested
In Comprehensive Wellness
Baicker K, Cutler D, Song Z. Workplace Wellness Programs Can Generate Savings.
Health Affairs (Millwood). 2010; 29(2).
45. Transformation beyond âSickâ Care to âHealthâ Care
New Way
Current Way
Focus
ď§
ď§
ď§
ď§
âSick Careâ System
Quantity/Cost of Service
Illness, Injury and Absence
Health âBenefitâ as a Cost
ď§
ď§
ď§
ď§
Approach
ď§
ď§
ď§
ď§
Permission to Drs & Pts
Coverage focused on Sickness
Fragmented/Uncoordinated
Prevention a Cost to Justify
ď§
ď§
ď§
ď§
Empowerment of Drs & Pts
Aligned Incentives for Health
Integration / Coordination
Prevention as an Investment
Results
ď§
ď§
ď§
ď§
Benefits for Poor Health
EEs âUse it or Lose itâ
Patients Passive Recipients
âPay for Quantity/Volumeâ
ď§
ď§
ď§
ď§
Rewards for Better Health
EEs âUse Wisely & Saveâ
Consumers Active Participants
âBuy Quality/Valueâ
True âHealthâ System
Quality/Value of Service
Well-being and Engagement
Value and Benefits of Health
46. The Bottom Line
Good Health
is
Good Business
From the Exam Room
to
the Board Room
46
Editor's Notes
Globally, more people have access to a mobile device than have access to drinking water, electricity or a toothbrush.80% of the worldâs population has access to safe drinking water (BBC News, 2011) 81% of the worldâs population has access to electricity (WEO, 2011)âRight now there are more mobile phones than toothbrushesâ. Just under just under 6 billion mobile devices being used worldwide. (Institution of Engineering and Technology, 2011; Dr. Mike Short)
⢠Wireless solutions are well suited to address some of the biggest challenges in health care today.⢠77% of Americans over 65 have 2 or more chronic conditions (Dept. of Health & Human Services)⢠By 2020, at least 160 million Americans will be monitored and treated remotely for at least one chronic condition (Johns Hopkins University)⢠Both consumers and physicians are rapidly embracing wireless health (PricewaterhouseCoopers, 2010)⢠56% of consumers like the idea of remote care⢠88% of physicians wanted patients to track/monitor health at home
This HPBS study showed the broader presenteeism and absenteeism costs of poor health to employers were $2.30 for every $1.00 spent on medical/pharmacy costs, and did not even include the additional costs of the following:Workersâ Compensation CostsShort-term Disability Long-term Disability Overtime Turnover Temporary Staffing Administrative Costs Replacement Training Off-Site Travel for Care Customer Dissatisfaction Variable Product Quality