Glaxo Wellcome Canada Inc.
Improving the Bottom Line by Improving the Bottom Line by Adopting a Strategic Health Adopting a Strategic Health
FocusFocusMonday November 1, 1999
Monique Finley, Glaxo Wellcome
Ottawa OHNA
Glaxo Wellcome Canada Inc.
Nature of the ProblemNature of the Problem
New Technology- Capital- Pharmaceutical- Procedures
DemographicShifts
GovernmentPolicy
UnfundedLiability
IncreasingCosts/Liability
Glaxo Wellcome Canada Inc.
Advantages of a Long Term Advantages of a Long Term FocusFocus
1996 1997 1998e 1999e 2000e
Long term benefits through strategic management
Time
One time savings through cut
Issue arises as cuts appear
$
Glaxo Wellcome Canada Inc.
Strategic Health FocusStrategic Health Focus: : Linkages in the Cost of LabourLinkages in the Cost of Labour
Employees working with Disease
Employees absent due to Disease
Medicines(Used Appropriately)
Productivity
Absenteeism
Short TermDisability
Long TermDisability
Workers’Compensation
Education/Occupational Health
Education/Occupational Health
Glaxo Wellcome Canada Inc.
WSIB ExampleWSIB Example
The Situation– only involves
employees
– work related injury/illness
– costs cover employees
– known and measurable productivity loss
– can be improved upon within 1-2 years
Plan of Attack– understand what those
injuries and illnesses are
– plan and/or hire someone to help fix them through
morale boosting, ergonomic studies, machine guarding incentives
Glaxo Wellcome Canada Inc.
WSIB vs Health CareWSIB vs Health Care
The Situation– only involves
employees
– work related injury/illness
– costs cover employees
– known and measurable productivity loss
– can be improved upon within 1-2 years
The Health Situation-involves employees,
spouse/dependent/retirees
Glaxo Wellcome Canada Inc.
Workers’ Comp vs Health CareWorkers’ Comp vs Health Care
The Situation– only involves
employees
– work related injury/illness
– costs cover employees
– known and measurable productivity loss
– can be improved upon within 1-2 years
The Health Situation-involves employees,
spouse/dependent/retire
-covers ‘life’ related
injury/illness
Glaxo Wellcome Canada Inc.
Workers’ Comp vs Health CareWorkers’ Comp vs Health Care
The Situation– only involves
employees
– work related injury/illness
– costs cover employees
– known and measurable productivity loss
– can be improved upon within 1-2 years
The Health Situation-involves employees,
spouse/dependent/retire
-covers ‘life’ related
injuries/illness
-costs cover employees
spouse/dependent/retire
Glaxo Wellcome Canada Inc.
Workers’ Comp vs Health CareWorkers’ Comp vs Health Care
The Situation– only involves
employees
– work related injury/illness
– costs cover employees
– known and measurable productivity loss
– can be improved upon within 1-2 years
The Health Situation-involves employees,
spouse/dependent/retire
-covers ‘life’ related
injuries/illness
-costs cover employees
spouse/dependent/retire
-costs due to productivity
loss are hidden
Glaxo Wellcome Canada Inc.
Workers’ Comp vs Health CareWorkers’ Comp vs Health Care
The Situation– only involves
employees
– work related injury/illness
– costs cover employees
– known and measurable productivity loss
– can be improved upon within 1-2 years
The Health Situation-involves employees,
spouse/dependent/retire
-covers ‘life’ related
injuries/illness
-costs cover employees
spouse/dependent/retire
-costs due to productivity
loss are hidden
-results 5-10 years out
Glaxo Wellcome Canada Inc.
WSIB vs Health CareWSIB vs Health Care
Plan of Attack– understand what those
injuries and illnesses are
– plan and/or hire someone to help fix them through
morale boosting, ergonomic studies, machine guarding incentives
Plan of Attack
Glaxo Wellcome Canada Inc.
OpportunityOpportunityStrategic View of Health: Health management is a big envelope - component
costs must be understood - where appropriate costs need to be seen as an investment
Private sector needs to influence evolution of system A healthy workforce is a competitive advantage which
requires investment guided by a long-term strategic plan: A healthy workforce = A “Healthy” Business
Glaxo Wellcome Canada Inc.
GW’s View of the “Healthy” GW’s View of the “Healthy” BusinessBusiness
Canopy: Strategic Health Focus
Pillars: Policies & Practices
Foundation: Education & Intervention
Glaxo Wellcome Canada Inc.
Communicating the Value of a Strategic Health Focus through:
Intuitively sound messages
Valid business case
A Healthy Business: The Canopy -
Strategic Health Focus Philosophy
Glaxo Wellcome Canada Inc.
A Healthy Business: A Healthy Business: The Supporting Structure - The Supporting Structure -
Policies & PracticesPolicies & Practices
Communicating Policies and Practices that are Consistent with a Strategic Health Focus by:
Demonstrating the effects of corporate policies on health
Glaxo Wellcome Canada Inc.
A Healthy Business: A Healthy Business: The FoundationThe Foundation
Education & InterventionEducation & Intervention Working to Advance Knowledge and
Provide Services to Support the Emerging Needs of the Marketplace through:
Provision of workable solutions:
Glaxo Wellcome Canada Inc.
A Long Term Health A Long Term Health Solution Solution
How to Attack Employee Health Costs– identify your specific health cost drivers/issues
understand the issues and interrelationship between the components of health in your workplace
– plan for the long term– work with stakeholders– educate and mobilize employees– Public/private sector linkages
Glaxo Wellcome Canada Inc.
Overview: Overview: Health AnalysisHealth Analysis
iseaseClassification*
DrugClaim
Analysis
WICB /DisabilityAnalysis
Burden ofIllness
AnalysisCardiovascular 1 2 3
Respiratory 2 3 4
Mental 3 4 1
Digestive 4 6 6
Identifying Health Issues - Three Views
Glaxo Wellcome Canada Inc.
Strategic Health ManagementStrategic Health Management::Understanding InterrelationshipsUnderstanding Interrelationships
The Corporate information resource needs to include information on:– health costs in the workplace– health status of the workforce– the correlation between investment and
return
Glaxo Wellcome Canada Inc.
StrategicStrategic Health ManagementHealth Management::Long Term PlanningLong Term Planning
All successful organizations manage their strategic assets over the long term
Success has not been tied to long term management of health in the past
The urgency to plan has been created by the increased dynamics of change
Glaxo Wellcome Canada Inc.
Strategic Health ManagementStrategic Health Management::Working with StakeholdersWorking with Stakeholders
Canada has some of the best health resources in the world
Multi-stakeholder consortium is required internal and external members should be talking
Patients as stakeholders need to be involved The pharmaceutical industry has in-depth
knowledge of pharmaceutical technology
Glaxo Wellcome Canada Inc.
Strategic Health ManagementStrategic Health Management::Education Education
Shift mentality of worker from “Entitlement” to “Ownership”
Focus on prevention and appropriate use of medication and other treatments
Behavioral change is fundamental to create an action orientation
Measure to the best of your ability
Glaxo Wellcome Canada Inc.
INSPIREINSPIRE: Canadian Health : Canadian Health Awareness ProgramAwareness Program
Corporate employee health promotion and awareness program
Canadian Advisory Board development
Promotional materials, booklets, newsletters, presentations, surveys
Turn-key employee education modules
Supports both group and solo learning styles
*
Glaxo Wellcome Canada Inc.
Strategic Health ManagementStrategic Health Management::Stronger Private/Public LinkagesStronger Private/Public Linkages
Public and private sector linkages need to be strengthened
Private sector consultation on public policy must increase
Incentives need to be given to the private sector
Glaxo Wellcome Canada Inc.
Strategic Health ManagementStrategic Health Management::Understanding the Value of MedicineUnderstanding the Value of Medicine Evidence based analysis on the value of
medicines will reduce skepticism New technology which contributes to the
value of health needs to be fostered
Glaxo Wellcome Canada Inc.
Strategic Health ManagementStrategic Health Management: : Areas of CautionAreas of Caution
Employee demand Measurement of returns Senior management buy-in
– Selling your value and services vertically and throughout your work force