population health management as a serious business strategy
DESCRIPTION
THEUNIVERSITYOF MICHIGAN HEALTHMANAGEMENT RESEARCHCENTER ChamberofCommerce WashingtonD.C. December3,2009 DeeW.Edington Ford Delphi Kellogg USSteel WeEnergies JPMorganChase DelphiAutomotive SouthernCompany NavistarCorporation UniversityofMissouri MedicalMutualofOhio FloridaPowerandLight StLuke’sHealthSystem AllegianceHealthSystem CuyahogaCommunityCollege UnitedAutoWorkers-GeneralMotors WisconsinEducationAssociationTrust AustralianHealthManagementCorporationTRANSCRIPT
Population Health Management as aSerious Business Strategy:
A Corporate Perspective
Chamber of CommerceWashington D.C.
December 3, 2009
THE UNIVERSITY OFMICHIGAN
HEALTH MANAGEMENTRESEARCH CENTER
Dee W. Edington
UM-HMRC Corporate ConsortiumConsortium Ford
Delphi
Kellogg
US Steel
We Energies
JPMorgan Chase
Delphi Automotive
Southern Company
Navistar Corporation
University of Missouri
Medical Mutual of Ohio
Florida Power and Light
St Luke’s Health System
Allegiance Health System
Cuyahoga Community College
United Auto Workers-GeneralMotors
Wisconsin Education Association Trust
Australian Health Management Corporation
Steelcase (H)
General Motors
Progressive (H)
Crown Equipment
Affinity Health System
SW MI Healthcare Coalition (H)
*The consortium membersprovide health careinsurance for over twomillion individuals. Dataare available from three to20 years.
Meets on First Wednesdayof each December in AnnArbor.
Business Problem
Currently, most costs associated withworkplace and workforce performance aregrowing at an unsustainable rate
How are we going to be successful in thisincreasinglycompetitive world without ahealthy and high performing workplace andworkforce?
How can we turn costs into an investment?
National Chamber of CommerceShort Quiz
If you have been doing the same thing for 30-60 yearsand you continue to get the same unsatisfactoryresults: Is it time to find a new level of thinking?
If you continue to wait for defects and then try to fixthe defects: Will you ever solve the problems?
If you put a changed person back into the sameenvironment: Will the change be sustainable?
Is it better to keep a good customer or find a new one?
Is the action you reward, the action that is sustained?
Total Value of Health• Medical/Hospital• Drug• Absence• Disability• Worker’s Comp• Effective on Job• Recruitment• Retention• Morale
DiseaseHealthRisks
The Economics of Health Status
The world we have made as a result of the
level of thinking we have done thus far
creates problems we cannot solve
at the same level of thinking
at which we created them.
- Albert Einstein
Total Value of HealthMedical/HospitalDrugAbsenceDisabilityWorker’s CompEffective on JobRecruitmentRetentionMorale
DiseaseHealthRisks
The Economics of Total PopulationEngagement and Total Value of Health
Low orNo Risks
Where does Cost turn intoan Investment?
increase
increase
decrease
Vision for ZeroTrends
Zero Trends waswritten to be a
transformationalapproach to the way
organizations ensure acontinuous healthyand high performing
workplace andworkforce
Based upon 175Research Publications
Integrate Health into Core BusinessHealthierHealthier
PersonPersonBetter
EmployeeGains for TheOrganization
1. Health Status
2. Life Expectancy
3. Disease Care Costs
4. Health Care Costs
5. Productivity
a. Absence
b. Disability
c. Worker’sCompensation
d. Presenteeism
e. Quality Multiplier
6. Recruitment/Retention
7. Company Visibility
8. Social Responsibility1981, 1995, 2000, 2006, 2008 D.W. Edington
LifestyleChange
HealthManagementPrograms
Company Cultureand EnvironmentSenior LeadershipOperations LeadershipSelf-LeadershipReward Positive ActionsQuality Assurance
Five Fundamental Pillars
SeniorLeadership
OperationalLeadership
SelfLeadership
RewardsQuality
Assurance
Senior Leadership
Create the Vision
•Commitment to healthy culture
•Connect vision to business strategy
•Engage all leadership in vision
“Establish the business value of a healthy and highperforming organization and workplace as a world-wide competitive advantage”
Operational Leadership
Align Workplace with the Vision
•Brand health management strategies
•Integrate policies into health culture
•Engage everyone
“You can’t put a changed person back into the sameenvironment and expect the change to hold”
Population Health Management Strategy
Health Management--healthy stay healthy--don’t get worse
Disease Management--stay on protocol--don’t get worse
Sickness Management--reduce errors--coordinate services
Where is the economic strategy?
Self Leadership
Create Winners
•Help employees not get worse
•Help healthy people stay healthy
•Provide improvement andmaintenance strategies
“Create winners, one step at a time and the first stepis don’t get worse’
Reward Positive Actions
Reinforce the Culture of Health
•Reward champions
•Set incentives for healthy choices
•Reinforce at every touch point
“What is rewarded is what is sustained”
Quality Assurance
Outcomes Drive the Strategies
•Integrate all resources
•Measure outcomes
•Make it sustainable
“Metrics to measure progress towards the vision,culture, self-leaders, actions, economic outcomes”
SUMMARY
3 Visionfrom
Leaders
HealthySystem &Culture
Engage allin Culture
RewardPositiveActions
Progressin allareas
2 Speechfrom
Leader
RiskReduction
Reduce allRisks
Incent H-Risk
Change inRisks,ROI
1 InformLeader
Out-source ReduceH-Risks
Incent H-Risk
Change inRisks
0 DoNothing
DoNothing
DoNothing
DoNothing
DoNothing
1 2 3 4 5
Engagement Level of the Organization
Program Rating
Do Nothing
Champion
Comprehensive
Traditional
SeniorLeadership
OperationsLeadership
Self-Leadership
RewardsforPositive
Actions
QualityAssurance
Five Pillars
Thank you for your attentionPlease contact us if you have any questions.
Phone: (734) 763 – 2462Fax: (734) 763 – 2206
Email: [email protected]
Website: www.hmrc.umich.edu
Dee W. Edington, Ph.D. , DirectorHealth Management Research CenterUniversity of Michigan1015 E. Huron StreetAnn Arbor MI 48104-1689