Dave began by stating that many are
confused about health care. There is a $2.7 trillion dollar
marketplace which is projected to quickly grow to $3.4 trillion. Over
30 million people are without health insurance. We are currently
filtering dollars into an ineffective, high cost system. The
management principles are counter intuitive to good business
practices. Unlike private business, technology is driving health care
costs up and the health care industry is behind on use of information
technology, lacking data analytics and business intelligence. The
Congressional Budget Office says up to 20 million people will lost
their insurance as Obama Care goes into effect next year and 10% of
the hospitals will fail. Solutions will come by value based
solutions, created by insightful data and critical thinking.
Population Health Management helps
measure...
1. Population Health Strategy –
pinpoint the cause of escalating workforce health cost
2. Productivity – performance
metrics...quality, throughput, efficiency gains
3. Profit Trends – cost trends
(margins), supply chain, profit target (+/-)
The benefits of population management
are...Controls health care and vendor cost, increases workforce
productivity and assists in maximizing profits.
Common sense is something we have to
negotiate for in the U.S. We all need to become good health care
consumers. At the end of the day it is up to individuals to do their
part. It is about...Lifestyle, Lifestyle, Lifestyle...Exercise and
diet, Smoking and Alcohol.
We know the
problem:
-5% of the sick account for 50% of the
costs
-More than 75% of health care costs are
due to chronic conditions
-20-25% of employer health care costs
are the result of non-compliance.
-70% of business expenses are related
to payroll, payroll taxes and benefits yet management spends the bulk
of its time on other areas.
Workforce productivity is the key.
Of every 100 employees:
25 have cardiovascular disease
20 will have high blood pressure
38 will be overweight
21 will smoke
44 will suffer from stress and
depression
The majority of executives lack a
comprehensive strategic plan for controlling workforce benefit cost
and lac cost accounting methods. There is a failure to connect
workforce health to actual cost to the business (e.g. absence,
disability, workers' comp).
The first step in addressing the
problem is to for business to admit we are powerless over health
insurers and government regulation and the cost has become
unmanageable. A population health strategy needs to use data from the
information systems business invests in to pinpoint the cause of
escalating workforce health cost. Performance of employee
productivity needs to be measured because business is making an
investment and should expect a return. Several other options include
individual health accountability, being an educated health consumer,
adjust life style to be healthy, engaging business leaders in
strategy development, understanding health impact cost, creating new
strategies, measuring vendor performance and collaborating with your
team to create measurement.
Next week we will hear from Tom Rocklin
of Siemens.