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Case Study: Six Straight Years of Declining Healthcare Costs. --Presentation and Case Study--. Dr. Rick Cartor, Custom Healthcare Designs / BB&T. 1. #kyshrmconf. rickcartor.wordpress.com. AGENDA. 1. Our Purpose Today 2. The Company 3. The Summary Statement
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Case Study: Six Straight Years of Declining Healthcare Costs --Presentation and Case Study-- Dr. Rick Cartor, Custom Healthcare Designs / BB&T 1 #kyshrmconf rickcartor.wordpress.com
AGENDA 1. Our Purpose Today 2. The Company 3. The Summary Statement 4. TheTimeline & Results 5. Why it works & Advice Dr. Rick Cartor, Custom Healthcare Designs / BB&T #kyshrmconf rickcartor.wordpress.com
Our Purpose Today The purpose of this session is generate ideas that may enhance the value1 of the healthcare benefits your company provides its employees, by sharing the details of one company’s very successful2 health care benefit system. 1. Value: low cost, high quality, accessible care 2. Success: decreasing PEPY spending, improved health, positive reactions, accessible quality care Dr. Rick Cartor, ChD / BB&T (502) 489-5972 #kyshrmconf rickcartor.wordpress.com
About the company • Description • History & Purpose • The Mary Byron Foundation • Products/Services • Awards • VP, HR @ 150 • Healthcare experience and vision #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 4 rickcartor.wordpress.com
The Summary Statement A long term incremental introduction of an integrated system that engaged employees in primary care by creating a collaborative culture of health awareness by: • aligning incentives, • analyzing and sharing data (information) • contracting for convenient primary care • establishing and steering to a narrow network #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 5 rickcartor.wordpress.com
The “integrated system” • Health assessment and promotion • “Wellness” with incentives / disincentives • Continuum of coaching • Contracted accessible care • Fixed rate (lower and more predictable) • On-site or near site x Solo or shared • Data acquisition and analysis • Analytics, information and transparency • Narrow network and steerage #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 6 rickcartor.wordpress.com
Timeline START: Existing Care plan HDHP/HSA Jan. 1 $1 You are here (09/27) !? Biometrics (Eddington) Drawing: F2T Renewal $ Stop HRA Add Sr+ Committee Coaching HRA 2008 2010 2012 2011 2013 2007 2006 2009 Coaching & DM ONSITE CARE Healthcare to HR WELLNESS SELF-FUND ChD BHN EXCLUSIVE NETWORK Incentives (+PCC) for partners Rewards: Participation to ZT to results Free e-cigs Nicotine test to attest Non-smoker reward to smoker fees ½ fitness fees + Steerage #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 rickcartor.wordpress.com
Data Actions • PMPM data • Recidivists (biometrics) • Targeting repeat high risk factor employees • Effects (biometric scores healthcare costs) • Focus wellness programs, activities #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 8 rickcartor.wordpress.com
BACK On Site PCC Wellness Self Fund $210 2006 2007 2010 2009 2008 2011 2013 2012
Data Actions • PMPM data • Recidivists (biometrics) • Targeting repeat high risk factor employees • Effects (biometric scores healthcare costs) • Focus wellness programs, activities #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 10 rickcartor.wordpress.com
Why it Works (1-5 of 11) 01. Primary and preventive care Dr. Barbara Starfield, Johns Hopkins, etc. 02. Transaction costs: doctor visits / meds & pharmacy / lab work 03. Coaching & disease management 04. ER, ICC use 05. Procedures, Inpatient care, Meds #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 11 rickcartor.wordpress.com
Why it Works (6-11 of 11) 06. In Network + Transparency = Lower costs 07. Self-funding: incentive management, steerage 08. Unbundled: transparency, competition, value. 09. Data driven decisions 10. Zero Trend basis (P’MaintainImprove) 11. Integration: system design #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 12 rickcartor.wordpress.com
Unsolicited Advice (…or free consulting!) 01. Believe. 02. Emphasize primary care, prevention. 03. Stop Idea Whack-a-Mole. 04. Think small / act locally. 05. Use a formal PSDM process. 06. Agree on goals, objectives, criteria. 07. Think > 12 month (Plan & ROI). #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 13 rickcartor.wordpress.com
Unsolicited Advice (…or free consulting!) 08. Follow up with chronic conditions. 09. Consider exclusive (“narrow”) networks. 10. Insist on acquiring / analyzing data. 11. Align on healthiness. 12. Integrate the system… 13. Stay vigilant: “No victory is final or complete.” #kyshrmconf Dr. Rick Cartor, ChD / BB&T (502) 489-5972 Page 14 rickcartor.wordpress.com