NEWS RELEASE. FOR IMMEDIATE RELEASE Contact: Thomas Becher ndp

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1 NEWS RELEASE FOR IMMEDIATE RELEASE Contact: Thomas Becher ndp Health Employer Exchange, academic health systems improving employee health while reducing costs Employees, providers and health systems seeing benefits of culture of health BALTIMORE, Md. (May 31, 2018) Self-insured health systems and employers are reporting significant improvements in the overall health and satisfaction of employees while reducing costs for health plans and workers compensation providing case studies for national healthcare reform. Participants in a recent two-day Health Employer Exchange (HEE) leadership team meeting, hosted by Johns Hopkins HealthCare Solutions, shared their approaches to a four-part, valuebased care model developed by the HEE that focuses on the culture of health; population health management; the evolution of healthcare delivery systems; and scaling and replicating success. As healthcare costs go up nationally, HEE partner organizations are creating health and wellbeing models that can be replicated to self-insured employers, said Stephanie McCutcheon, CEO of Health Employer Exchange. Health systems are passionate about providing exceptional care to their employees and their communities. That s why we need models of healthcare reform that come from within. Now, after six years of work, we can report that those models are paying dividends and can be applied to industries beyond just healthcare.

2 We want to make sure that we take the time to invest in the material results we have experienced, said Richard Shannon, MD, executive vice president of health affairs at University of Virginia Health System and chairman of the HEE Oversight Committee. We are at the end of the beginning and have a long journey to go in partnership with our employees but our pursuit must be passionate on behalf of our employees, our organization, and our community. HEE s model, developed with 12 principles for health plans and workers compensation, also is being applied to address mental health and addiction. During the model s build phase from , participating health systems reduced employee healthcare costs by 15 percent and 56 percent when applying the model to workers compensation. Then, following six months of refining the program, results between March 2016 and March 2017 showed a 19 percent differential in medical and prescription drug costs between those who participated and plans at large. Elsewhere, health systems using the model recorded 28 percent lower workers compensation costs than expected, resulting in $4 million in claims savings between 2012 and And HEE participants recorded $8.9 million in health plan savings between June 2013 and June The culture of health that makes these results possible comes from employees and employers working together to support employee health as well as physicians and providers that have continuously worked to support this, McCutcheon said. After three years of building and three years of implementing an innovative model for healthcare, we have tangible results. Now we need to replicate our findings so other self-insured employers have the tools they need to do the same. The achievements support evidence-backed research by Dee Edington, Ph.D., showing that health is an economic imperative. Meanwhile, U.S. Preventive Medicine, a leader in population health management, has improved the projection capacity of HEE s model to further demonstrate evidence-based savings. This all takes time, but the results provide an exciting glimpse into what can be the future of employee health, said Gayle Capozzalo, executive vice president of strategy and system development for Yale New Haven Health. By bringing together leading healthcare providers and their patients, communities and physicians, HEE is on the forefront of finding sensible and proven solutions to some of the nation s most vexing problems.

3 HEE is like an incubator with research and development to improve the healthcare delivery system, said John Miller, executive director, MidAtlantic Business Group on Health. Participating systems that have worked together to improve this model and application of its principles have included UCLA Health, Bon Secours Virginia Health System, Baylor Scott & White, University of Virginia Health System, Yale New Haven Health, and Northwestern Memorial HealthCare. Cleveland Clinic Wellness Institute and Johns Hopkins HealthCare Solutions have also contributed to the HEE s mission and vision through their own innovative employee health initiatives. These health systems have stepped up and taken a rightful leadership role to replicate and scale a model that helps them support employees to achieve health and wellbeing, McCutcheon said. Small but strategic steps Turns out, just small changes implemented by employers, when done the right way and integrated, can significantly improve health outcomes and reduce costs, especially when addressing the causes of chronic diseases, according to presentations at the meeting. For example, encouraging healthy food and beverage options, restricting the use of tobacco, implementing programs that promote exercise and preventive care, and making employee health and wellbeing a high priority. Until we can expect employees to engage in healthy living, we need to get employers to support their journey, said Richard Safeer, MD, medical director of employee health and wellness at Johns Hopkins HealthCare. When you make the workplace a climate of healthy choices, employees will follow. We need to meet employees and employers where they are and work with human resource leaders to support that. One key to success are coaches within the organization. Our BeWell program uses well-trained patient advocates to coach employees through achieving health goals approved by their primary care physician, said Charlotte Perkins, corporate development officer for University of Virginia Health System. They not only relate well with our employees but serve as the trusted connector between them and the delivery system.

4 While presenters at the meeting acknowledged the culture of health is not easily measured in the near term, the return on investment can eventually be tracked through fewer sick days and lower health plan costs. Other positive results can come from improving benefits. From incentives to participate in wellbeing programs to discounts on benefit premiums, employers are making it worthwhile for employees to stay healthy. People want to change. If I as a healthcare provider can t improve employee health how would an insurance company do any better? Perkins asked. We re already paying for it so why not find better ways? When it comes to healthcare, it begins at home. Businesses beyond healthcare should take a stronger approach to promoting health and wellbeing, said Dan Pelino, founder of Everyone Matters, Inc. You need to address all aspects of employee health or you will lose people to other companies, he said. Healthcare is more than a benefit it is defining a company s culture and boards of directors are paying attention. Now, health systems and providers are jointly developing a new type of consumerism. Michael Roizen, MD, chief wellness officer for the Cleveland Clinic Wellness Institute, shared some success stories that led to a reduction of healthcare costs by $254 million since 2010 with no change to benefits and fewer employee sick days simply because employee health improved. Roizen told the group how Cleveland Clinic eliminated fried food and sugary drinks and encouraged walking. As a result of years of effort, the percentage of employees smoking fell from 15.4 percent to 5.3 percent; blood pressure has remained steady; body-mass index has been reduced by 0.5 percent a year even as the nation s waistline expanded; and immunization has gone from 51 percent to 91 percent. Because about 80 percent of healthcare costs are devoted to treating just a few chronic diseases such as diabetes and heart disease, this will kill the federal budget and raise taxes or we have to ration healthcare, Roizen said. If we don t solve this problem we re all in trouble and yet we know how to solve it. It s easy to get healthy if you want to. It s our responsibility as employers to make that easier. By helping employees reduce stress, stop smoking, eat better, exercise and get preventive care, we can improve their health, reduce costs and tackle chronic diseases, Roizen said. But this

5 does require a culture change. You need to repeat the message and share stories of success. You ve got to capture the a-ha moments to show how people are making changes in their lives. Tackling mental health Meeting participants also addressed the growing need for mental health treatment. With both suicide rates and opioid addictions up significantly more money is being spent and we re getting horrible outcomes, said Henry Harbin, MD, former CEO of Magellan Health Services. The system has failed and now the system has to step up. There have been adjustments in the financing system to let that happen and physician and health system leaders should be the bridge toward making that a reality. Employers need to come to the table. Fortunately, HEE is providing a way to do that. Just as the organization s model has reduced healthcare and workers compensation costs, participating health systems can apply the same principles to tackle mental health and addiction. Participants in HEE s thought-leading meeting agree that the model has promise. A core part of the Johns Hopkins HealthCare Solutions mission is to help employers provide programs that improve the health of their employees and reduce healthcare costs, said Mark A. Cochran, Ph.D., executive director. We do this by identifying an employer s cost drivers and then offering Johns Hopkins-developed behavior change programs for employees with the chronic conditions that typically drive up those costs such as diabetes and cancer. Having these organizations work together offers a lot of promise, added Kevin Joyce, vice president of insurance networks for Atlantic Health System. Developing that will be our collective responsibility and opportunity. Warner Hudson, MD, CEO of H & H Health Strategies LLC, said many of the problems facing the nation s healthcare insurance and rising costs can be addressed by employers. Employers can fix this, not politicians, Hudson said. Health spending is sucking the wind out of the economy. By focusing on the benefits of health as a strategy, employers are in the best position to reduce employee stress, reduce workers compensation and improve health for everyone. The culture of health drives everything.

6 We know this takes courage on behalf of physicians and providers but building on something that has been demonstrated to work provides courage in itself, McCutcheon said. Going forward, HEE will focus on creating accelerator packages to help self-insured employers achieve the same results health systems have documented while keeping patients their employees at the core of everything they do. The next phase is how to get it going faster, McCutcheon said. We re identifying organizations and people who can be corporate catalysts to move this concept from healthcare employers to all industries. We re also inviting additional health systems and other large employers to participate. We believe this is the future of healthcare and everyone can participate to find solutions. About Health Employer Exchange The Health Employer Exchange was founded by leading healthcare delivery systems to develop and implement value-based care delivery models supported by metrics to demonstrate their efficacy. The HEE is focused on better results that will reduce the burden of chronic disease and consequently reduce cost and increase satisfaction. HEE is committed to engaging healthcare and other large employers, their workforces, and providers to design and implement effective partnerships between work and health to build healthier lives. To learn more please visit ###