Download Bend your company`s healthcare cost curve

Bend your company’s
healthcare cost curve
5 principles for lowering your
healthcare costs and creating
a healthier workforce
In 2016, Novant Health provided care for its 24,000 team
members and their dependents at a lower cost than the year
before. This was a first in the organization’s history and resulted
in a savings of $1.4 million. Industry experts said it couldn’t be
done. The experts were wrong. This case study explains how we
at Novant Health mobilized our team members and leveraged
our resources to achieve the impossible — and how we can
help your organization do the same.
Challenging the impossible
For nearly a decade, the national imperative has been clear: hospitals, doctors,
nurses and insurers have been asked to work together to improve quality,
expand coverage, and lower costs. Today, more Americans have insurance than
ever before, and studies show that quality is improving in many parts of the
country. However, lowering healthcare costs still seems like an impossible feat.
At Novant Health, we like to challenge the impossible every day. That is
how we’ve become a national leader in healthcare transformation — making
communities healthier and the patient
experience remarkable. In 2016, we spent less
We finished the year
per member per month (PMPM) to provide
$10 million under our
healthcare for our team members and their
projected costs and
dependents. We finished the year $10 million
achieved $1.4 million
under our projected costs and achieved $1.4
in total savings.
million in total savings. In essence, we bent our
own cost curve. In this case study, we’ve provided five principles to help you take
charge of your company’s healthcare costs and, more importantly, the health of
your most valuable asset — your team members.
1 A healthy workforce is critical to a healthy bottom line
You’ve read the headlines and know the story: the American workforce is
increasingly plagued by chronic disease and unmanaged health risk factors. In
2016, the Centers for Disease Control and Prevention measured the economic
impact of employee absenteeism related to high blood pressure, diabetes,
obesity, smoking and physical inactivity. The study concluded that those
conditions and risk factors alone account for more than $2 billion in annual
absenteeism costs. For smaller employers, absenteeism costs ranged from $16
to $81 per employee per year. The range was even greater for larger employers
at $17 to $286 per employee per year. Intuitively, the study concluded that
absenteeism increased with the number of risk factors and diseases reported.
You’ve almost certainly encountered these same challenges within your own
workforce and have taken steps to mitigate their impact.
But how are you measuring the overall health of your workforce? More
importantly, how are you motivating your team members to get healthy, and
how are you measuring positive change in their attitudes and behaviors?
Novant Health’s cost success story is largely attributed to our team members’
commitment to improving their own health.
In 2016, our team members demonstrated this commitment by:
•Visiting their primary care doctors for regular check-ups.
•Receiving preventive screenings based on their age and overall health status.
•Taking their prescription medications exactly as prescribed.
•Following their discharge instructions after a hospital stay.
•Participating in our wellness programs.
The outcome was fewer visits to the emergency room and fewer hospitalizations
for our more than 24,000 team members and their dependents.
The annual cost of absenteeism
Small employers
Large employers
$16 to $81
$17 to $286
per employee
per employee
Measure the pulse of your workforce
Novant Health Corporate Health offers on-site screenings and assessments
to provide a complete picture of your company’s overall health. Our licensed
staff provides employee health risk assessments and screenings for cholesterol,
diabetes, high blood pressure, heart disease and more. Screenings include detailed
risk factor reports and personalized feedback to help lower risk and manage
existing conditions. These reports enable you to strategically determine programs
and services that target your employees’ greatest modifiable risk factors.
To learn more, call 1-866-634-9425 or visit
NovantHealth.org/corphealth.
2 A culture of wellness is built around creativity,
consistency and communication
Understanding and valuing the overall health of your workforce is just the
beginning. In order to truly take control of your company’s healthcare costs,
you must build a culture of wellness in your organization. Commitment to your
team members’ health must be hardwired into your day-to-day operations. From
healthy choices in your cafeterias to educational opportunities and incentivizing
preventive care, wellness has to be a top-level strategic priority 365 days a year.
More importantly, it must be communicated clearly and consistently to your
entire team all year long. Finally, in the battle against rising healthcare costs,
you must be willing to get creative and take strategic risks.
Here are two examples of how Novant Health leveraged its resources
strategically and creatively to attain lower costs in 2016:
•We began offering diabetes supplies at no charge to our team members and
their dependents covered in our plan. Providing these lancets and test strips
meant that our plan incurred additional costs, but it was a calculated risk based
on this premise: If more people are able to control their condition, they will
avoid expensive hospital stays for out-of-control diabetes. It worked.
•We used analytical tools to identify covered team members and dependents at
the highest risk for hospital readmission, and we targeted our high-touch
healthcare planning to those individuals. This strategy resulted in 30-day
readmission rates plunging from 13 percent to
This strategy resulted
just 2.9 percent. Not only did this reduce the
in 30-day readmission
cost of claims, it meant that individuals were
rates plunging from
staying healthier.
13 percent to just
2.9 percent.
As you develop a plan to bend your own cost
curve, it’s important to leverage every resource
at your disposal. As a healthcare organization, we were able to plan and
implement the above strategies through existing channels and processes. As
you develop your own strategies, look for operational gaps hindering you from
reaching your goals and align with strategic partners to help close those gaps.
3 Programs are pathways to success
Building a culture of wellness in your organization also requires effective,
sustainable programming. As you evaluate the current wellness landscape of
your company, ask yourself these questions:
•How healthy is our health and wellness programming?
•Are we providing clear pathways to better health for our team members?
•How is our current wellness program being utilized by employees at every
level of our company?
Benefits of a well-planned wellness program
Reduce employee sick leave
by more than 20 percent
Reduce turnover and
improve morale
Improve overall employee health
Improve safety and reduce
workers’ compensation claims
Increase productivity
Build employee trust, pride
and commitment
Strengthen company culture
Your company’s wellness program shouldn’t be a one-size-fits-all solution.
Every organization’s workforce is different, which means customization is key.
If you’re seeing low adoption or utilization rates of your current programming,
it’s important to evaluate its fit for your employee’s needs. Effective wellness
programs should be specially designed around your company’s:
•Culture
•Budgets
•Workforce population and location
•Identified risk
•Specific needs
On-site wellness programs offered by Novant Health
Corporate Health
Our programs have a track record for success and are designed to meet
your employees exactly where they are.
Tobacco cessation
Weight management,
including personalized meal
and exercise plans
Stress management
Mobile mammography
Educational programs
Health coaching
Let Novant Health Corporate Health customize a wellness
program for your company today. Call 1-866-634-9425 or
visit NovantHealth.org/corphealth.
4 Productivity, health and convenience
go hand-in-hand-in-hand
In today’s high-demand, fast-paced work environment, convenience is critical
to productivity. At an increasing rate, companies across the nation are
recognizing the value of offering high-quality, highly accessible care options
for their employees without having to leave the building or campus. At Novant
Health, we offer on-site employee health clinics and pharmacies to our team
members, with discounts provided at
each to incentivize utilization and help
By cutting down on off-site
us better manage costs.
travel time, our clients have
seen boosts in productivity,
Not only do we offer these walk-in
decreases in absenteeism
health services within our own walls, we
and overall improvements
partner with many companies across the
to their employees’ health.
Southeast to do the same. Our on-site
wellness centers function as a private
medical clinic for a company’s workforce. Employees have access to walk-in
services, including treatment of minor illnesses and injuries, as well as basic lab
tests and preventive care. They are staffed by a nurse practitioner or physician
assistant, under the general supervision of a licensed physician, ensuring the
highest quality of care. By cutting down on off-site travel time, our clients have
seen boosts in productivity, decreases in absenteeism and overall improvements
to their employees’ health.
Interested in an on-site wellness center for your company?
Call 1-866-634-9425 or visit NovantHealth.org/corphealth.
5 Teamwork makes the dream work
In 2016, more of Novant Health’s team members and their dependents used
providers, facilities and services throughout the Novant Health network. This
system-wide collaboration between our team members and provider partners
resulted in lower healthcare costs across our organization. Most importantly,
it meant that our team members — as patients — benefited from highly
coordinated, high-quality care and a laser-sharp focus on prevention.
As you consider healthcare options for your own team members, it’s important
to find a solution that’s right for you. Access, quality and cost are some of
the most important factors to consider when evaluating your options for a
healthcare partner. Equally important is the
coordination of care between providers and
When companies partner
facilities, which eliminates duplicate tests,
with us, they join a
conflicting care plans and the unnecessary
collaborative network of
costs associated with disjointed care.
physician partners and
support services reaching
When companies partner with Novant Health
more than 4 million
Corporate Health, they join a collaborative
people across four states.
network of physician partners and support
services reaching more than 4 million people across four states. All of our
corporate health programs include access to our entire network with expedited
appointments and the convenience of video and e-visits. And the care that we
provide is all connected through our industry-leading electronic health record
system, meaning that test results, health history and care plans are accessible to
both patients and their physicians whenever and wherever they need them.
We can help
In the world of rising healthcare costs, Novant Health can help you start to bend
your own cost curve just like we did for our organization in 2016. Contact Novant
Health Corporate Health to begin saving on your healthcare costs today. Email
us at [email protected] or call 1-866-634-9425.
© Novant Health, Inc. 2017
5/17 • NH-156815