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Aphorisms by

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Aphorisms by. Paul B. Handel M.D. Vice President, Chief Medical Officer. It's Really Not About ... Indirect Costs: Costs that cannot specifically be traced to ... – PowerPoint PPT presentation

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Title: Aphorisms by


1
Aphorisms by
Paul B. Handel M.D. Vice President, Chief Medical
Officer
2
Its Really Not AboutMoney
  • BUT

3
Prevalence of Behavioral Risk Factors in the US
Workforce
Source NHIS 2005 (alcohol, smoking)
NHANES 1999-2002 (exercise)
4
General Health Statistics
Economic Health and Burden of Chronic Disease
a2000, b2002, c2003. Categories may
overlap. Direct Costs Costs that can be traced
to or identified with a specific product or
procedure. Indirect Costs Costs that cannot
specifically be traced to an individual service
or procedure. Source Centers for Disease
Control and Prevention, 2004d
5
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6
50 of All Cancer DeathsCould Be Avoided By
  • Stopping smoking
  • Eating healthy

American Cancer Society WSJ April 6,2006
7
  • Increased life expectancy
  • Increased economic value

8
  • 1 decrease in death due to cancer equals
  • 500 billion in value

9
  • 1.5 Trillion per year

Kevin Murphy, U o Chicago Graduate School of
Business WSJ,Sept 25,2005
10
Risk for Developing Obesity
  • Tracked 4,117 peoplenormal weight
  • 30 to 59 years old
  • 1971 to 2001

11
Within 4 Years
  • 14 to 19 females and
  • 26 to 30 males overweight
  • 5 to 9 of both became obese

12
Within 30 Years
  • 50 became overweight
  • Approximately 1/3 females and1/4 males
  • Became obese!

Vasan, R.S.,Annals of Intern. Med.2005143473-48
0
13
Number of Obese Adults in Texas by Age Group
2000 to 2040
14
Costs of Obesity to US Business
  • 8 Billion Healthcare costs
  • 2.4 Billion Paid sick leave
  • 1.8 Billion Life Insurance
  • 1 Billion Disability

Department of HHS, 2003
15
Hidden Costs of Obesity toUS Business
  • 30 Million lost work days
  • 239 Million restricted activity days
  • 90 Million bed days
  • 63 Million physician visits

Obesity Research, 1998
16
Medicare
  • Spending on obesitywill increase from
  • 2.6 GDP to
  • 9.2 in 2050!

Rand Institution health policy forum Oncology
Times Jan 10,2006
17
An ounce of health is worth a pound
(actually,1.75 pounds) of healthcare!
18
Our resources would be better directed towards
improving efforts to prevent illness and manage
chronic ailments like diabetes and heart disease.
  • David Goodman, MD
  • Health Affairs, March/April, 2006

19
Published Research Supports Quantifiable ROI
Rates for Wellness Programs
Return on Investment (Per dollar ROI for
lifestyle programs)
  • Some employers and brokersunfamiliar with ROI
    researchexpressed that one of the impediments to
    adding affinity/discount programs was a reported
    lack of ROI capability or the ability to see an
    immediate benefit
  • Without a method for calculating ROI, employers
    report that affinity/discount programs just add
    another operating cost
  • In fact, the preponderance of relevant literature
    speaks to positive ROI for health promotion
    programs
  • Most experts estimate that it takes 3 years for
    ROI to begin, with nearly unanimous reports of
    positive ROI
  • The T.E. Brennan Companys ROI assessment serves
    as an example of the published research which
    quantifies the impact of wellness programs

Source Healthcare Costs Worry Employees, Oct.
31, 2005, Messenger-Inquirer Employee Health
Promotion Programs What is the Return on
Investment?, Wisconsin Public Health Health
Policy Institute, Sept. 2005 HR Magazine.
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21
Readiness to Change
  • Habit is habit, and notto be flung out of
    thewindow, but coaxed downstairsa step at a
    time.
  • Mark Twain
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