Keith Edic Director Wellness Services

1. “Successful Workplace Wellness Program Case Study: Healthy University” Keith Edic Director Wellness Services

2. Why Employee Wellness? The total cost of obesity to U.S. employers is $13 billion per year1 Obese Americans spend about 36 percent more on health services and 77 percent more on medications than people of healthy weight.  That’s more than heavy smokers or heavy drinkers2 Workplace alcohol, tobacco, and other drug use costs over $100 billion each year3 Workers’ compensation costs for a smoker averages $2,189 compared to only $176 for a nonsmoker4 Job stress is estimated to cost $200 to $300 billion annually in absenteeism, tardiness, and lost productivity5 1 Cost Benefit Analysis and Report 1979-2001, Univ. of Michigan Health Management Research Center Rand Corporation, 2004 2 Six Reasons Why Health Promotion Makes Sense, Welcoa, 2002 3 Six Reasons Why Health Promotion Makes Sense, Welcoa, 2002 4 Cost Benefit Analysis and Report 1979-2001, Univ. of Michigan Health Management Research Ctr. 5 July 2001, Journal of Occupational and Environmental Medicine

3. HELP! Photography by Brian Luke Seaward, Ph.D.

4. Every year your employees will: 69% of employees will get a cold, flu and/or other respiratory infection 30% will sustain a minor injury 24% will have a non-respiratory infection 12% will have a digestive disorder

5. Emergency Department Visits 1.23 million ED visits in 2008 83 million test (x-rays, MRI, CT Scans, etc) Typical cost per visit: $1,265 (2008) 30% of all ED visits are unnecessary

6. Physician Visits 1.2 billion visits in 2007 Average cost: $120 (2003) 7 in10 visits result in at least one prescription- 2.7 billion overall. 30% of all Physician visits are unnecessary

7. Employee Wellness Programs Can Help! Valley Health: Employee Wellness Results

8. 2010 Healthy U Summary • Increased VH employee participation from 24% to 31% • Over 19,000 Health Coaching contacts (face to face, phone, or email) • Over 170 referrals to physicians, diabetes management, fitness centers, and nutritional counseling. • Reduction in biometrics from 2009-2010: • BMI 3% • Weight 2% • Cholesterol 1% • LDL 4% • Triglycerides 10% • Glucose 2% • Jan 2011 82% of participants chose the new Wellness Bucks incentive as their reward!

9. Valley Health Insurance Claims

10. All VHS Insurance Total Per Member Per Month Cost

11. VHS Health Care Cost Trend Differential

12. VHS Shift in Multiple Health Risk Prevalence • Average annual cost: • 0-2 Risk Factors $2,199 • 3-4 Risk Factors $3,460 • 5+ Risk Factors $5,520 • Moving a single employee with 5+ RF to 0-2 RF = $3,321 in savings • In 2010 Health Risk Prevalence shift savings = $60,365

13. VHS Weight Reduction and Tobacco Cessation • Studies show moving one person’s BMI from >30 to < 29 nets a $1,400 cost savings. $15,400 in savings in 2010 • Having one employee quit smoking nets a cost savings of $3,391. $30,519 in savings in 2010

14. VH Employee Sick Leave Differential • Collected actual sick leave hours used in 2008-2010. • Initially separated data into 2 groups: • Healthy U Participants (HUP) • Non Healthy U Participants (non HUP) • Utilized VH badge numbers to match Healthy U participants.

17. VH Employee Sick Leave Differential “Well, you just have healthier employees in Healthy U so the numbers should be lower. Right?”

18. VH Non Healthy U 21% Reduction = $451 High Risk Moderate Risk Low Risk

19. Healthy U Participant Sick Leave Differential Savings Cost if not in HU Actual HUP Cost • 2008 $ 419,468 $ 156,468 • 2009 $1,789,647 $ 797,837 • 2010 $2,944,927 $1,484,675 $5,154,042 $2,438,979 Total savings over 3 years in sick leave hours: $2,715,063

21. What is the next step for Employee Wellness Programs?

22. Employee WellnessNext Steps Medical Self-Care (WELCOA) Currently less than 10% of companies Personal Health Records (WELCOA) 95% of diagnosis is based on medical history (Association for American Physicians and Surgeons) Primary Care Physician Limit unnecessary visits to the ED

23. Questions?

24. Thank you!