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Improving the Bottom Line by Adopting a Strategic Health Focus

Improving the Bottom Line by Adopting a Strategic Health Focus

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Improving the Bottom Line by Adopting a Strategic Health Focus

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  1. Improving the Bottom Line by Adopting a Strategic Health Focus Monday November 1, 1999 Monique Finley, Glaxo Wellcome Ottawa OHNA

  2. Nature of the Problem Increasing Costs/Liability New Technology - Capital - Pharmaceutical - Procedures Demographic Shifts Unfunded Liability Government Policy

  3. Advantages of a Long Term Focus One time savings through cut $ Long term benefits through strategic management Time Issue arises as cuts appear

  4. Strategic Health Focus: Linkages in the Cost of Labour Education/ Occupational Health Workers’ Compensation Productivity Absenteeism Medicines (Used Appropriately) Employees absent due to Disease Employees working with Disease Short Term Disability Long Term Disability Education/ Occupational Health

  5. 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 WSIB Example

  6. 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 WSIB vs Health Care

  7. 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 Workers’ Comp vs Health Care

  8. 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 Workers’ Comp vs Health Care

  9. 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 Workers’ Comp vs Health Care

  10. 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 Workers’ Comp vs Health Care

  11. 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 WSIB vs Health Care

  12. Opportunity Strategic 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

  13. GW’s View of the “Healthy” Business Canopy: Strategic Health Focus Pillars: Policies & Practices Foundation: Education & Intervention

  14. A Healthy Business: The Canopy - Strategic Health Focus Philosophy Communicating the Value of a Strategic Health Focus through: • Intuitively sound messages • Valid business case

  15. A Healthy Business: The Supporting Structure - Policies & Practices Communicating Policies and Practices that are Consistent with a Strategic Health Focus by: • Demonstrating the effects of corporate policies on health

  16. A Healthy Business: The FoundationEducation & Intervention Working to Advance Knowledge and Provide Services to Support the Emerging Needs of the Marketplace through: • Provision of workable solutions:

  17. A Long Term Health 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

  18. Overview: Health Analysis Identifying Health Issues - Three Views

  19. Strategic Health Management:Understanding 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

  20. StrategicHealth Management:Long 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

  21. Strategic Health Management:Working 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

  22. Strategic Health Management: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

  23. 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 INSPIRE: Canadian Health Awareness Program *

  24. Strategic Health Management:Stronger 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

  25. Strategic Health Management:Understanding 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

  26. Strategic Health Management: Areas of Caution • Employee demand • Measurement of returns • Senior management buy-in • Selling your value and services vertically and throughout your work force

  27. Questions Concerns Comments ? Strategic Health Management