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Transcript of Perpsectives_May
Leslie Arcana, Director of Consulting Services at HUB Int'l Gulf South, Metairie, LA
Russell Berman, Executive Vice President at Hayes Companies, Minneapolis, MN
Greg Howe, Wellness Manager at Lincoln Industries, Lincoln, NE
Franck Labiche, HR Director at Laitram, Harahan, LA
Leonard Martin, City Manager of Carrollton, TX
Catherine Hamilton, VP of Strategic Planning at BCBS of VT, Berlin, VT
Wednesday, May 13, 2015
ACA, ADA, EEOC, ERISA, HIPAA, and taxation
"Not everything that can be counted counts, and not everything that counts can be counted."
Gains from investment -- Cost of investment
Cost of investment
What are the GAINS?
"Hard dollar" (direct cost) savings:
Redirected Care (primary, occupational)
Rx drug savings
Reduction in specialty/hospital services
Saved time away from work
ROI = 2:1 or 3:1
Cost = MH annual fee + implementation fees
"Wellness community lost credibility with claims of 6:1 ROI."
--Leslie Arcana, HUB Int'l
"Moving away from ROI is not realistic in the for-profit business world. They have to be able to explain every dollar invested."
--Russell Berman, Hayes Companies
"If you're asking: 'We paid Marathon Health $1,000,000; show me where I saved $1,000,001?' you are in it for the wrong reason."
"You either believe in it or you don't."
"Even in your own life, how do you put a dollar value on your health? Do you avoid an illness because you don't want to spend the money to treat it?"
-- Leonard Martin
Marathon Health's ROI calculation
"Soft dollar" (indirect) savings:
Supporting our clients as they make sense of confusing regulations
Highly effective cultures of health
substance & alcohol
Where do we fit? How much value can we have?
Better management of
Healthier culture as competitive advantage
tolerance for failure/safe to innovate
Variables affecting ROI:
client's initial data
time (how many years out)
Value over time
What enables you?
Health & productivity research
Healthways: Gallup-Healthways Well-Being Index
HERO: Employee health research, policy, strategy
IBI (Integrated Benefits Institute): Health and productivity at work
Dr Ray Fabius, et al: Market performance of companies that nurture "cultures of health"
City of Rockford: "This employee used to be one of our more difficult employees."
Lincoln Industries: "...He has taken on additional responsibilities...He's now our 'go-to' guy..."
What is the real value of improving health of a workforce?
Are we moving away from an obsession with ROI to sustainable cultures of health?
Better outcome for
Health Affairs blog: "Workplace Wellness Produces No Savings" (Lewis, et al.)
"...we have found that wellness programs produce a return-on-investment of less than 1-to-1 savings to cost."
poor research design
lack of coordinated strategy