Creating a Culture of Health

Creating a Culture of Health Anne Marie Ludovici-Connolly, M.S.

Health Management: a Serious Economic Strategy • “Health management is a health strategy, but equally important, health management is a business and economic strategy.” • “When risk status changes or when participation in health promotion activity changes, costs follow in the same direction” Dee Edington, PhD., Zero Trends, 2009

$ Employer health care costs are projected to rise 50% in the next five years (with a “do nothing” approach)

Return on Investment In a recent study published by Health Affairs, Harvard Economists reported that medical costs fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs fall by about $2.73 for every dollar spent. Baicker, K., Cutler, D., Song, Z. Workplace Wellness Programs Can Generate Savings. Health Affairs, February, 2010 29:2

Beyond ROI-Building The Business Case:The Full Cost of Employee Health For each dollar spent on worker medical costs, employers absorb 2 to 4 dollars of health-related productivity costs All Employers Benefit Small-Large, Fully-Self Insured, Application to all Demographics Industries, Goals & Objectives • Personal Health Costs • Medical Care • Hospitalization • Pharmacy • Diagnostic Testing • Behavioral Health • Workers’ Comp • Medical Costs • Salary Continuation • Productivity Costs • Absenteeism due to Illness and Injury • Employee Dissatisfaction • Customer Dissatisfaction STD LTD • Training Costs • Overtime • Temporary Staffing • Productivity Costs • Turnover • Variable Product Quality • Administrative Costs • Off-Site Travel for Care • Replacement Training

Best Practice FrameworkIntegrated/Targeted Worksite Wellness Model Health Assessment Onsite at the Worksite Culture of Health Biometric Screening Healthier People = Healthier Bottom Line • Maintain Health • Improve Health • Manage Health Behavior Change Programs Monitoring & Measurement Onsite Activities and Campaigns Health & Wellness Portal Identical Virtual Application Engagement

The Five Fundamental Pillars Allow Outcomes to Drive Strategy Reinforce the Culture of Health Create the Vision Align Workplace with the Vision Create Winners Dee Edington, PhD., Zero Trends, 2009

Create the Vision • Leadership • Business Strategy • Culture of Health • Markel Corporation • CEO led • Long-term commitment to employee health • Full time director of health programs

Align Workplace with the Vision • Branding • Policies • Employee Engagement • Markel Corporation • “Live Well” program • HR guidelines support vision • Healthy food options • Fitness Facilities

Create Winners • Improve Health • Stay Healthy • Don’t Get Worse! • Markel Corporation • HDL, Inc. Advanced Lab Testing • Clinical Health Consultants • Digital tools • On-going fitness challenges

Reinforce the Culture of Health • Incentives • Rewards • Reinforcement Markel Corporation • Incentive Strategy 1) Advanced Lab Testing 2) Clinical Health Consulting 3) Annual physical • Reinforcement Associate recognition

Allow Outcomes to Drive Strategy • Integrate • Measure • Sustainability • Markel Corporation • HDL, Inc. Aggregate Report • Stratification • Claims data & trend

Creating a Culture of Health