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Agenda RFP 2010-002 On-Site Employee Healthcare Clinic Oral Presentations
Employee Medical Center + Program Presented too. Integrating insurance &employee health center expertise to maximize employer's savings. Our Employee Health Center Model Co- administered by CareHere Crowne LLC Over 80 centers operating in 17 states throughout the country Most public sector experience of any on -site health center administrator LE • FLrJ� ti r .. J 'V tenter of d Lidyn OE Partial Public Sector Client List City of Palm Bay City of Ocoee City of Port St. Lucie City of Apopka City of Ocala Charlotte County Rutherford County Rutherford County Schools City of Chattanooga Wilson County Wilson County Schools Sumner County Parrish Medical Center On -site Health Center Highlights -1 Voluntary, no cost option for employees, retirees, and dependents Does not change or replace existing insurance program and options Financial goal alignment (no alternative revenue producing facilities in community to feed) HIPAA /Privacy compliant Integrated and proven disease management program Typically recruit from local physician community 100% success rate of reducing costs for employers and their employees Program Services Overview • Included Program Services • Corporate Pharmacy Doctor services ■ Corporate Exercise Physiologist Services ■ Corporate Registered Dietician Services • Prescription Dispensing and related services • Population Health Management ■ Disease /Case Management ■ Dedicated remote RN staff for disease /case management • Health Risk Assessments, including biometric screening • Self Education Tools • Physician /Nurse Reach out programs ■ Comprehensive Health Education Training ■ Physician Seminars ■ Quarterly Population Promotion ■ 800 Customer Support ■ 24/7 Nurse -line ■ Online scheduling system ■ Online medical management & tracking system • Physician and staff recruiting and management • Analysis, trends, reporting, survey results • Program scorecard Program Services Overview + Included Program Services • Occupational Health Services; surveillance testing, fire fighter physicals, stress tests, fit for duty, hearing tests, and others • Workers Compensation; 1St report of injury Discretionary Services • Imaging; basic x -ray service • Analytics software subscription &consulting • Full Pharmacy services -1 Electronic Medical Record System ➢Occupational & Work Comp info can be accessed real time by our clients ➢Onsite medical staff, disease management & wellness team, and others work through the same medical record, which is updated real time Online Scheduling Tool & 24/7 U.S. Based Nurse Line ➢70% of appoints are made online ➢Patients can schedule appointments with specific medical providers if desired ➢Toll Free number can also be called 24/7 to make appointments Our Pharmacy Doctor reviews medications and coordinates with on -site medical staff to promote most cost effective solutions • Therapeutic New HRA diagnosis substitution associated • Generic substitution medications • Tiered prescribing ■New diagnosis approach ■Pill splitting • Evidenced based ■Compliance medicine Prescription Drugs +Typically stock 140 -200 Employee Health Center Prescriptions available at Medications are stocked when they can purchased at a lower cost than the medical plan Our buying power ensures lower cost Willingness to pass through Rx costs with no mark -up aligns financial goals Provided at no cost /co -pay to employees and dependents to encourage increased compliance and utilization shift Increased compliance improves medical outcomes Toradol Lanoxin 0.25 mg. tablets Tylenol Chew Phenergan 25mg /ml 1ml Synthroid Lanoxin Proventil ampule Xylocaine with Epinephrine Benadryl Elavil Phenergan Plain Xylocaine Viscous Vibra -Tab Amoxil Zantac Zestril or Prinivil Vibramycin Amoxil Chewable Disalcid Claritin 10 mg Vasotec Augmentin Zoloft Mevacor Adrenalin Chloride Auralgan (AB Optic) Silvadene Glucophage EES Granules ecotrin Zocor Robaxin EES 400 Tenormin Bactrim Medrol Dosepak Feosol Lotensin Bactrim DS Reglan Diflucan Valisone Ultram Lopressor Prozac Wellbutrin Desyrel Flagyl Lasix Capoten Kenalog Naprosyn Lopid Tegretol Dyazide Maxitrol Garamycin Debrox Maxzide -50 Procardia XL Glucotrol Keflex Tigan Pediatric Macrobid Robitussin DM Tagamet Neosporin Mycostatin Humibid DM Cipro Isoptin Penicillin VK Deconsal II Catapres Calan SR Pen Vee K HydroDiuril Lotrimin Coumadin K -Tab Cortisporin Otic Flexeril Zithromax Flonase Comprehensive Formulary Typically Exceeds 140- 200 Medications How do we proactively identity future health risks and claims liability? Personalized Cover Summarized Results Color -Code Summary Our approach to wellness &disease management maximizes client savings ■' The foundation of our HRA are the clinical values obtained through a blood draw, not self reported numbers on a survey ■ HRA lab results are automatically imported into our medical record system, which triggers response from remote and on -site medical team ■ Remote staff of dedicated disease /case managers efficiently enhances on- site staff ■ Our registered dieticians and exercise physiologists compliment the medical ca re ■ 24/7 US based nurse line ■ EMR integrates all patient interaction ensuring coordination of care YA P IF, I Mawkeye xplorer Back I Send to Knowledg Reset Help Add to Member Excel Selections List Plan Type ALL Condition TPA ALL # Company ALL Description Unit 4,LL 1,634 62.37% 51.14% . The results displayed on this form are based on CURRENT membership. I Full Cycle: May 06 thru Apr 08 Group ALL Condition Women 1 I # rG,-.p I Condition Description Y 2,708 1,634 62.37% 51.14% History 1,035 6011 Preventive Women >20y /o 'Women greater than 20 y/o with pap smear in last two years 12070 Preventive Women >-49 y/o 'Women greater than 49 y/o with mammogram in last 12 months 6010 Women between Preventive Women between 21 and 65 y/o with pap 21 and 65 y/o smear in analysis period ]y 6007 Preventive Women between 1,Vomen between 40 and 50 y/o with 1 40 and 49 y /o mammogram in analysis period Women between 'women between 40 and 49 y ;o with a L� 6012 Preventive 40 and 49 y/o mammogram performed at least every two years 6008 Preventive Women between 'Nomen between 49 and 69 y;o with 49 and 69 y/o mammogram in last 18 months I Full Cycle: May 06 thru Apr 08 Group ALL Condition Women Favorite RI-Is Show All QRI,Is Include All Members Activate Refill Tracker Activate Letter Module Total Number of Records: 6 of Members Meeting Criteria - L 4,895 2,944 1,440 1, 1 60.14% 50.01% 1,10 56.69% 45.4% History History 2,540 4,342 2,708 1,634 62.37% 51.14% History 1,035 582 453 56.23% 46.01% History 1,035 582 453 56.23% I " . 2.287 1,457 830 63.71% 46.06% History 55.55% History Results of Mammon 02Hawkeye "' • PAM a If ' Zoom Send to Reset Back I IKnowledg ,_,— _,; Help Plan Type ALL TPA ALL / Company ALL U n d ALL QRtd # 6008 • Group Preventive Condition Women between 49 and y!o QRM Description Women between 49 and 69 with mammo ram in last 18 months y Changes Between Mar 2008 to Apr 2008 Y,- Ak Full Cycle: May 06 thru Apr 08 Total Number of Records: 18 1 2008 02 APR 2,287 2008 Q1 MAR 2,048 2008 Q1 FES 2,034 2008 Q1 JAN 2,035 2007 04 DEC 2,035 1,457 830 63.71% 876 1,172 42.77% 906 1,128 44.54% 46.44% 945 1,090 1,024 I 1,011 49.68% Our Advantages • No alternative facilities to refer business to, so there is no potential conflict of interest or "hidden" revenue /costs to our clients — Our client typically experience fewer referrals to specialist & fewer hospital days and admits • Staff flexibility; we can adjust staff based on best organization fit and servicing levels • Flexible Hours; we can adjust opening /closing time and add hours on the weekend if effective • Robust Rx dispensing; formulary typically includes 140 -200 medications — Our buying power is unmatched by local group since we purchase medications for over 80 clinics • 24/7 Nurse Line; also includes remote staff support of disease & case managers • Exercise Physiologist and registered dietician are included in our program costs • Unmatched expertise with a focus on public sector employers Our Advantages • Dedicated &customized services; focused on meeting client objectives and not just integrating the client into an existing system of services and other patient services • Opportunity to add dedicated pharmacy services • Dedicated remote staff of disease /case managers support on- site staff • Partnership opportunities with other public groups (City of Ocoee, City of Apopka, and others) ■ No all inclusive fixed rate pricing, or create a financial incentive for costs, variable costs) ■ Proven Results; 100% success at maximizing client's ROI which can hide "profit centers" underutilization (ex: staffing achieving savings goals and Total Projected Saving (Costs) at 12% Trend City of Palm Beach Gardens Projected Healthcare Cost Comparison $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 2008 2009 2010 2011 Year ■ Without Clinic ❑ With Clinic 3 -Year Projected Net Savings: $1,500,000 ■ ■ ■ Costs /Savings Summary City of Palm Beach Gardens (based on 473 employees & 30 on -site provider hours) Year projected health center costs $621,246 1St year projected net savings (after onsite health center costs) 3 year projected net savings Additional clinic savings Annual projected employee co -pay savings Occupational health /workers compensation TBD Productivity savings $170,000 $1,500,000 3 hrs per visit 1400 350 300 250 200 150 100 50 0 Client results: Hospital Admission Days ❑ Days /1000 Fewer hospital admissions and admission days and have occurred over the past two years 340 1 �O /O 276 9% 76 admits /1000 67 members admits /1000 Av. Length members of stay = 3.6 Av. length of stay = 3.8 days 79 admits /1000 members Av. Length of stay = 4.3 da y s 69 admits /1000 members Av. Length of stay = 4.0 days ❑ Days /1000 Fewer hospital admissions and admission days and have occurred over the past two years Our Pharmacy Doctor, Pricing Power, Filling & Prescribing Habits, and Rx Strategy Shifts & Lower Utilization and Costs From the Pharmacy Benefit Manager 25,000 0 �CR L 0 L 21,000 a 0 19,000 E 17,000 Z 15,000 Comparison Before and with Employee Health Center 22,392 18.1 19, 11.5% rev, �O��� �� No 4e ❑ Pre - Health Center ❑ With Health Center ��] Less prescription are being filled through the insurance plan Proven Client Results; Impact on Number of Prescription Filled through insurance carrier /Pharmacy Benefit Manager (PBM) Comparison Before and with On -site Health Center U $1,500,000 ch E o $1,250,000 a a� L a $1,000,000 Rs ZC1 °rev 1lkev °ZOO ❑ Pre - Health Center ❑ With Health Center Total prescription costs are decreasing, plus trend increases are being avoided Proactive Disease Management &Wellness Program targets chronic conditions like Diabetes $'16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 (Diabetes Dx Related Payments Per Member) ❑ Total Dx Payments Over time our early detection and wellness efforts are reducing costs jdk center of Gooch St Johms Cow ' + ' ftdmBay ti 'ice•/ "F�[�it F�filr�fe � rrarr.rwr rw� • * j� rws AV rirw IJI r � r r w r 60 1 iw �� +�GIAi * � ww arrw ����k"0�� wFrw ww w�wrwr�.�w 6. _air I 1882 ICT F V ORTS� Cr \i / SEAL �, Inside this Issue: • Healthstat from Coast to Coast • Meet Tucker McKay • Recently in the News • STATS on Healthstat • Keep an Eye on Healthstat Healthstat States of Operation Worksite Clinics are located in the following states: Alabama Arkansas California Colorado Florida Georgia Illinois Indiana Kansas Massachusetts Michigan Missouri Mississippi New Jersey New Mexico New York Ohio North Carolina South Carolina Tennessee Texas Utah Virginia West Virginia heahhtat HFADLINES --- --------- ....... A PUBLICATION FOR CLIENTS, PROSPECTIVE CLIENTS & EMPLOYEE BENEFITS PROFESSIONALS Healthstat from Coast to Coast Coming Soon to a City Close to You! Healthstat continues to grow, literally from coast to coast. With clients in 24 states (see state listing in the left side bar) two of our three newest clients are located on opposite coasts: Santa Barbara County, CA — located on California's central coast The Healthstat program will be offered to 4,100 Santa Barbara County employees will participate in the Healthstat program. In the next few months, Healthstat will open clinics in Santa Barbara and Santa Maria, CA. Santa Barbara County covers 2,745 square miles. (Compare this to Mecklen- burg County, NC where Charlotte is located, which covers only 546 square miles). Santa Barbara is one of Healthstat's largest clients geographically. Larimer County, CO— located about 70 miles from Denver in the beautiful Rocky Mountains and home to the historic Stanley Hotel. Larimer County's commissioners accepted the Healthstat contract or June 23, 2009. Clinic services will be provided to approximately 1,400 county employees. Read more about Larimer County's decision at the following links: h�, r/ i�r��u.rep�xrcnc�rald.cnminc�c> ;tun.a >�r[ll= _'3 ?7� Larimcr +G)unQ +aonro� des +cmpl(�cc +hcalrh +clinic Blue Cross Blue Shield of Florida — located in Jacksonville, FL The Blue Cross Blue Shield Florida clinic will open June 29, 2009 on the insurer's Jacksonville, FL campus. Initial plans call for the clinic to serve 2,000 corporate employees. As one of the leading health insurers in the US, Blue Cross Blue Shield Florida is an innovator in health care cost containment and health improvement. Introducing: Tucker McKay, FNP, VP of Clinical Operations Tucker McKay is a certified Family Nurse Practitioner, and serves as l M Healthstat's VP of Clinical Operations. He brings extensive experience to this position, including the on -going experience of r;- working in Healthstat worksite clinics. Tucker began his career in Nursing in 1993 and graduated Cum Laude with a Bachelor of Science degree in Nursing from Mesa State College (Colorado). He has worked as a pediatric nurse, a nurse in a Gastroenterology specialty office and in hospital and home -care settings. After gaining work experience as a Registered Nurse, Tucker completed his Masters of Science degree in Nursing at the University of North Carolina (Charlotte) and was certified as a Family Nurse Practitioner. Since 2000, he has served his patients in primary health care settings and at Healthstat on -site, primary health care clinics. In his current role, Tucker is charged with overseeing the overall clinical spectrum of the Healthstat On -Site Disease Management Clinics. "The health care delivered in our clinics is so personal, and makes such a difference in people's lives," says Tucker. " Healthstat's employer clients are providing their employees so much more than health care services - they are really being provided access to someone who cares for them as a whole person," concludes McKay. Outside the clinic, Tucker enjoys spending time with his family, and they live in Mooresville, NC. He enjoys being involved at his church as a musician and leader. Tucker's hobbies include playing golf and building and flying radio controlled model aircraft. 2ND QUARTER 2009 Visit Healthstat on the web at www.healthstatinc.com Recently in the News... Success Stories —On -Site Clinics Smarten Utilization, Improve Employee Health (from Employee Benefit News) A recent Employee Benefit News article says onsite clinics are helping corporate America change the face of health care by saving time and money, as well as improving employee health care outcomes and satisfaction. The article dis- cusses a financial services company that has been hard -hit by the economy. The employees of this company are find- ing much - needed broad set of services at their new onsite clinic. During the current economic downturn, many companies do not believe they can successfully implement an onsite clinic program because of financial constraints. Healthstat offers several unique cost deferment opportunities to make the implementation decision an easier one. This, coupled with a guarantee on Return on Investment for self funded clients, makes Healthstat a smart decision. US Department of Labor Unequivocally Endorsed the Use of Health Risk Assessments, EEOC Letter Questions Legality of Health Risk Assessments (from Employee Benefit News Legal Alert) While the US Department of Labor has endorsed the appropriate use of Health Risk Assessments to help lower em- ployer health care costs, the US Equal Employment Opportunity Commission recently cast doubt on the use of Health Risk Assessments (HRAs) as a tool to reduce rising health care costs. HRAs are a tried and true means to identify and reduce risks within an employee population. HRAs have gained popularity in recent years as a condition of enrollment in employer- sponsored health plans. Many employers require completion of the HRA for both employee and depend- ents. The Department of Labor has clearly stated that the use of HRAs do not violate any employee rights, as long the HRA results are not used in any way to impair an individual's eligibility or benefits, or to increase the cost of coverage. The EEOC letter based its opinion on the Americans with Disabilities Act. The ADA prohibits discrimination in terms, condi- tions, and privileges of employment. This is an on -going and confusing issue. Using HRA participation and clinic visit compliance has become a popular means of cost containment for Healthstat clients. Clients are always encouraged to discuss use of the HRA as a con- dition of benefits enrollment and /or clinic compliance with their benefits advisor. As always, Healthstat provides HRA services in a completely HIPAA- compliant manner. Only the HRA participant receives identified results. STATS on Healthstat- June 2009 Total Number of Clients 93 Number of States where Healthstat Operates 24 Total Number of Clinics Open 298 Total Number of Clinic Providers 183 Contracted Contracted/ Employed 43 Employed Healthstat continues to grow and change in order to better meet the needs and expectations of our partner employers and employee benefits professionals. Today, we are serving clients with clinics in 24 states. Healthstat has successfully completed a SAS 70 Type II Audit, in order to analyze and demonstrate that operational processes and procedures are sound and provide the necessary foundation to maintain and sustain business operations. In addition, we are engaged in NCQA's first -ever survey for wellness vendors. Keep an eye on Healthstat. We are doing great things focused on helping you build a healthier business. 2ND QUARTER 2009 Visit Healthstat on the web at www.healthstatinc.com NEWS RELEASE Media Contact: Kara Dullea 864.275.3331 kdullea@thinkcargo.com HEALTHSTAT EARNS NATIONAL ACCREDITATION On -site health care provider among a select few to pass rigorous quality standards CHARLOTTE, N.C., (Jan. 25, 20 10) — Healthstat, Inc., the country's leading provider of on -site health care services in employer facilities, announced today that it is among a select group of health care providers that has earned Wellness and Health Promotion (WHP) Accreditation from the National Committee for Quality Assurance (NCQA). NCQA WHP Accreditation is a nationally recognized evaluation that companies can use to assess wellness and health promotion programs. Healthstat is one of just 16 organizations nationwide to earn the distinction of NCQA Accreditation in WHP, an important tool for assisting employers in evaluating the quality of health and wellness programs. Such programs have grown in popularity with the rising cost of healthcare. Research conducted by Healthstat shows that, on average, companies utilizing its on- site clinics have decreased healthcare costs between 5 and 20 percent. "Passing the rigorous accreditation standards set by NCQA is affirmation of Healthstat's commitment to quality programs and processes for our clients and their employees and is further proof that we are helping build healthier businesses," said Healthstat CEO Crockett Dale. The NCQA's Wellness and Health Promotion Accreditation fully evaluates key areas of health promotion, including how wellness programs are implemented in the workplace, how services (like health coaching) help eligible individuals develop skills to make healthy choices, and how sensitive health information of eligible individuals is properly safeguarded. Wellness & Health Promotion Accreditation surveys include rigorous on -site and off -site evaluations of 12 standards. A team of experts conducts Accreditation Surveys. A national oversight committee of physicians analyzes the team's findings and assigns an accreditation level based on the performance level of each organization being evaluated to NCQA's standards. The standards are intended to help organizations achieve the highest level of performance possible, increase healthy behavior change in eligible individuals and create an environment of continuous improvement. No comparable evaluation exists for wellness and health promotion programs. About Healthstat Healthstat, Inc., founded in 2001, is headquartered in Charlotte, North Carolina. As a leading provider of on -site primary care, high -risk health and disease management services in employer facilities, services are currently provided in more than 300 clinics with a combined employee and dependent population totaling more than 150,000 people. The service model offered has been proven effective through both the bottom line and the healthy life in various types of organizations, including Manufacturing, Retail, Governmental, Distribution, University, and Not - For- Profit Human Service Employer settings. For more information, visit www.healthstatinc.com. healtl-stat building a healthier business NEWS RELEASE Media Contact: Kara Dullea 864.275.3331 kdullea @thinkcargo.com POLK COUNTY (FLA.) SCHOOL DISTRICT SELECTS HEALTHSTAT FOR ON -SITE HEALTH CLINICS $8 Million Annual Estimated Cost Savings CHARLOTTE, N.C., (Feb. 10, 2010) -- Healthstat, Inc., the country's leading provider of on -site health care services in employer facilities, announced today that after a thorough vendor selection process the school board of Polk County voted to begin negotiations with Healthstat to open, manage and maintain two on -site clinics that will exclusively serve employees and dependents covered by the school district's health insurance plan as well as retirees on the district's self - insured plan. The on -site clinics will provide acute and urgent care, disease management and health risk counseling and also dispense certain (non - narcotic) medications to help employees improve their health. The School District of Polk County has more than 20,000 members participating in its health benefit plan. School board member Hazel Sellers, who serves as liaison to the district's insurance committee, says she considers the implementation of the on -site clinics a critical component of the district's employee benefit plan. "Since moving to a high deductible insurance plan, the board has been particularly concerned with finding ways to help employees with their health care costs without compromising their health," Sellers explained. "It is unanimous that Healthstat has the best model for what we want for our employees." The school board anticipates saving $3 in health care claims costs for every $1 spent on the Healthstat on- site clinics. This is expected to result in savings greater than $8,000,000 per year to the school district's health plan. With on -site clinics there is no need for employees to go offsite for treatment and no waiting in the doctor's office, so lost productivity and lost wages are virtually eliminated. Appointment wait - times average less than five minutes, and by focusing on the roughly 20 percent of claimants who are at highest risk of spending more than 80 percent of healthcare dollars, the employer's cost for providing employee insurance is reduced. Healthstat CEO Crockett Dale said, "Our goal is to alleviate the Polk County School District's rising cost of healthcare by improving the health of its employees. Healthstat physicians and clinical staff will identify chronic health risks and work with employees to manage their condition before it requires more serious treatment." Healthstat studies show its clinics have had significant improvements to major health risk factors, including: - a 44 percent reduction in the risk of death due to heart disease; - a 64 percent reduction in the risk of heart disease complications due to LDL cholesterol; and - reductions in fasting blood glucose resulting in a 9 percent lowered risk of having a heart attack. heahlitat building a healthier business As a part of the clinic, participants will undergo a health risk assessment to analyze their current health status and to be able to discuss their results with the physicians and nurse practitioners that staff the on- site clinics. Healthstat works in conjunction with the employee's personal physician to provide high quality, proactive and valuable health care services. This is accomplished through the implementation of on -site clinics, preventative care and wellness programs. The clinics are expected to open late spring or early summer. About Healthstat Healthstat, Inc., founded in 2001, is headquartered in Charlotte, North Carolina. A leading provider of on- site primary care, high -risk health and disease management services in employer facilities, it is one of the country's only health care providers to have earned Wellness and Health Promotion (WHP) Accreditation from the National Committee for Quality Assurance (NCQA). Healthstat services are currently provided in more than 300 clinics with a combined employee and dependent population totaling more than 170,000 people. The service model offered has been proven effective through both the bottom line and the healthy life in various types of organizations, including Manufacturing, Retail, Governmental, Distribution, University, and Not - For - Profit Human Service Employer settings. For more information, visit www.healthstatinc.com. heahlitat building a healthier business Clinic Saves Lakeland $1.1 Million in Health Insurance Costs I theledger.com I The Ledg... Pagel of 3 back to article Clinic Saves Lakeland $1.1 Million in Health Insurance Costs By Rick Rousos THE LEDGER Published: Tuesday, August 4, 2009 at 8:26 p.m. LAKELAND I The city is saving more than $1 million a year in health insurance claims because of its "preventative medicine" wellness clinic, Lakeland's risk manager says. Director of Risk Management Karen Lukaub said clinics cost more money in the beginning, but save more as time goes on by having healthier employees. PAUL JOHNSON I LEDGER PHOTOS Of the city's 2,100 full -time workers, 1,840 have Medical director Dr. Miguel Eisen takes the blood pressure of Lakeland's city health insurance through the city's self- insurance accountant, Jody Dale, at the city's program. In 2008, 1,239 workers used the city wellness clinic on Friday. clinic. Insurance claims for those workers averaged $929 less than the average yearly claim of $5,492 per year filed by a typical city worker. The savings: $1.1 million. The 601 insured workers who didn't use the clinic made claims averaging $1,448 more than the $5,492 average. That is $870,000 the city would not have had to spend if those workers went to the clinic. Any worker using the North Lake Parker Avenue clinic must go through a comprehensive assessment that includes testing for blood sugar and cholesterol, then a "body mass" evaluaton, which has everything to do with fat. Dr. Miguel Eisen, who staffs the clinic along with medical assistant Jennifer Lubbs, said, in initial testing, bad body mass numbers are the biggest threat to good health. The clinic opened two years ago and one of the early customers was Parks and Clinic Saves Lakeland $1.1 Million in Health Insurance Costs I theledgencom The Leda... Page 2 of 3 Recreation worker James " Cosmo" McHenry, then 5 feet, 10 inches tall and weighing 238 pounds. "I was so tired from working outside all day that when I got home I couldn't move," he said. "I'd just lay around and eat." McHenry said Eisen told him he was cultivating serious health problems. "He pretty much called me a fat ... ," McHenry said. The evaluation got McHenry off the couch. He started a "Biggest Loser" contest with 27 other city workers, mostly from Parks and Recreation. The entry fee was $20 and fines were levied against people who gained weight at the weekly weigh in. In six months, McHenry dropped 91 pounds and kept it off. He traded the chips and pretzels for bike rides and runs around Lake Hollingsworth. McHenry said he loves the clinic and can't understand why all the city employees don't use it. "The change in Cosmo is incredible," said Bill Tinsley, director of Park's and Recreations. McHenry has become a "health nut" to the point of being a borderline nuisance, Tinsley said with a laugh. He said the city's wellness clinic has raised health awareness in city workers. The clinic is open to any city worker in the health plan, with permission from a supervisor. The city decided to hire a private company to staff and maintain the clinic. Georgia based HealthSTAT is paid $361,000 from the city's $18 million health plan. Lukhaub said HealthSTAT is necessary because the city shouldn't be in the position of maintaining city workers' medical records. The clinic is used for a variety of reasons by workers, who don't pay any co -pay to see Eisen. Workers coming down with a cold or the flu and with minor cuts or illnesses visit, and Eisen coordinates worker health care with outside doctors. Eisen has seen most maladies known to humanity. He has practiced at Polk General Hospital, which closed in 1995, the Polk County Health Department and as Clinic Saves Lakeland $1.1 Million in Health Insurance Costs I theledger.com I The Ledg... Page 3 of 3 a surgeon in the U.S. Army. "I believe we provide good service here," he said. Lukhaub said she believes wellness clinic are the way of the future, the way to cut health costs for governments and private business. She said private businesses should band together to share the cost of a clinic. "This doesn't replace (outside) doctors," she said. "But it helps employees get healthy." [ Rick Rousos can be reached at rick.rousos @theledger.com or 863 - 802 -7514. ] 40kalffrihunenm Clinic opens By JASON WITZ Correspondent Published: Wednesday, January 27,2010 at 1: oo a.m. School employees and their families will no longer have to go to a doctor's office for routine health care. And there will not be a co -pay. The district will open its free clinic today to provide another option for basic health care to more than 2,000 employees and their immediate families. Officials partnered with a North Carolina -based company specializing in on -site clinics for various corporations and transformed part of the Charlotte Technical Center into a medical center. The 3,5oo- square -foot facility, in building G of the technical center, features exam rooms and a lab, capable of handling everything from the flu to blood work. Charlotte is the first area district to use the concept, according to Carrie Klum, the district's human services and employee benefits manager. "We're not trying to replace anyone's primary physicians," Klum said. "We just want to provide an additional avenue." The clinic will be available to anyone covered by the district's insurance plans. Teachers union president John Klenovic said the clinic will be a service to the staff. "We think it's a first -class operation," he said. A reception will be held from 9 to 11 a.m. today at the clinic, 18450 Murdock Circle in Port Charlotte. For more information, call 255 -o8o8, Ext. 3032. This story appeared in print on page BN3 Copyright © 2010 HeraldTribune.com — All rights reserved. Restricted use only. 01,'Ll IYEWSCH .co Clinics eyed for east, west Polk Kristin Anderson / the Associated Press By Kara Phelps News Chief staff Published: Saturday, February 13, 2010 at 4:01 a.m. Last Modified: Saturday, February 13, 2010 at 2:21 a.m. BARTOW - The Polk County School Board recently voted to begin negotiations to create two health clinics for its employees. After a bid process, they approved HealthStat, based in Charlotte, N.C., to open and manage them. The school district intends for its employees and retirees to attend clinics in two central locations, possibly one each in the east and west parts of Polk County. The clinics are part of the district's plan to cut costs on health care by reducing emergency room visits and managing employees' chronic conditions such as high blood pressure and diabetes. HealthStat spokeswoman Kara Dullea estimated Wednesday that the district will save $8 million per year on its health plan, or $3 in claims for every $1 it spends on the clinics. Officials expect the clinics to open in the late spring or early summer. The School Board agreed to pursue negotiations with HealthStat as part of the consent agenda at Tuesday's meeting. Polk County Public Schools has about 13,000 employees, making it the largest employer in the county. Its health plan insures about 20,000 people. Officials have said the clinics will be open at hours convenient to teachers. The district also will save money on substitutes, since many teachers will no longer need to take off half a day for a doctor's appointment, according to Joy Myers, senior manager of employee benefits. The clinics will operate like urgent -care facilities, possibly both staffed by a doctor and several nurses, physician's assistants or other medical personnel. They will be open only to Polk County Public Schools employees and retirees. HealthStat also runs the health clinic for the 3,000 employees of the city of Lakeland. kara.phelps a,newschief.com This story appeared in print on page Al All rights reserved. This copyrighted material may not be re- published without permission. Links are encouraged. "The On -Site Disease Management program is the key to the success of the Clayton Marcus Health Insurance Plan. Because of this program, we have not had to increase employee costs or reduce benefits for the past 4 years because our costs have actually reduced over this period of time. Not only does this saw us moneu but it is a great benefit fbr our emplot ees.» Z I Clayton Marcus Furniture Company (a division of La Z Boy) V• « Ouremployees think the Healthstatprogram is awonderful • addition to our benefit offerings and we are confident that we W will continue to see positive rest.tlts. » M rn Nero Hanover County Human Resources NVUrnington, NC The Healthstat on -site clinics are an integral part of our strategy to hold down rising healthcare costs and continue to be one of the highest rated programs we ofler our employees. " Mount Vernon Mills Nlauldin, SC For More Information about Healthstat Please Contact: Healthstat 704.5219.6161 webinfo@healthstatinc.com 11 lb healthstatinc.com 4601 Charlotte Park Dr i Suite 390 / Charlotte, NC 28217 healtl-stat huilding a healthier business J m G >v T C t9 to rn .y a O a a a` n Healthcare costs are on the rise. And employees and their employers are feeling the pinch. Enter Healthstat — the leading provider of on -site primary care, health risk intervention and disease management services. Designed to manage emerging risks and chronic disease states or just treat minor ailments and daily setbacks, our on -site health clinics are staffed by local physicians, nurse practitioners or physician assistants that have a genuine concern for both the company and the employee. Equipped to treat everything from minor scrapes to sinusitis to diabetes to Occupational Medicine, the fully integrated clinics are easy to implement, non - intrusive, and the care is completely confidential. Our clinics offer employees a convenient source for healthcare at no extra cost to them and are often rated the # I employer - sponsored benefit. There's no need to go offsite for treatment and no waiting in the doctor's office, so lost productivity and lost wages are virtually eliminated. Appointments are strategically scheduled - keeping wait - times down to less than 5 minutes - to provide high risk & disease management, regular preventive care, occupational medicine, acute /episodic care and coordination with the patient's own primary care physician. By focusing on 20% of claimants who are at highest risk of spending more than SOo o of healthcare dollars, the employer's cost for providing employee insurance is reduced`. And should an employer use separate vendors for case and disease management, Healtlistat can efficiently integrate them through our sophisticated database and on- site clinic providers. *wheal rumpared to healthcare trends Benefits of a Healthier Business • Improved employee health • Reduced employer healthcare costs • Reduced absenteeism • Increased productivit% • Decreased claims costs • Decreased workers compensation costs • Added recruitment & retention tool Benefits for Healthier Employee • Easier access to quality health care • Quicker access to health care prodder • No Co -Pays, less cost for care. better health • Prescriptions written for necessary medication • Improved pharmacy options • Voluntary, Confidential, 1000 o HIPAA Compliant Healthcare Services • Health Risk Assessments • Clinic Set L?p • Medical Staff Recruitment & Contracting • Primary & Preventive Care • Occupational Medicine • Pharmacy Services • Disease Management Care • Outreach Services • Personal, One -on -One Attention, Counseling • Wellness Programs - Tobacco Cessation - Diabetes Management - Weight Management - Work Flex • Predictive Modeling • Reporting • Compliance Monitoring 0 r. �t a M O x >v r C� fIQ a a You hear about it more and more in healthcare discussions. At Healthstat, we bring a fresh approach to promoting wellness within your company. Our Wellness Works program utilizes the invaluable expertise of our on -site clinicians to help your employees adopt healthier lifestyles. By researching countless perspectives regarding wellness and combining the most effective components, we've created a highly effective program to guide employees toward a healthier, and overall better quality of life. Wiy all the fuss' Because a happier, healthier employee makes for a better, more productive workplace. Weight Management • Determine a healthy weight • Establish personal weight loss goals • Expand diet and exercise knowledge Tobacco Cessation • Motivation in ceasing or reducing tobacco use • Create personal goal plan for success • Teach alternative stress reduction techniques Diabetes Prevention & Management • Education on diabetes. including Ty-l)e I and Type 2 differences • Develop personalized diabetes prevention and management plans • Increase knowledge of diabetes - related health consequences Active Diabetes Care Program • Personlized counseling and support • Creation of individualized goals and management plans Additional programs include Work flex and Break 4 Wellness For More Information about Healthstat Please Contact: Healthstat 704.5 -99.6161 webin to @healthstatinc. com I lb healthstatinc.com 4601 Charlotte Park Dr i Suite 390 / Charlotte, NC, 28217 healtfstat building a healthier business tv ►t At R. O c� 2 «An ounce of prevention �� Yes, we've heard the saying that starts that way too. But it couldn't hurt to do a little more to beat that "pound of cure" in the end. That's why we designed the Healthstat Health Risk Assessment to be a scalable solution available online or on paper. Just choose how deep you want to go. Move forward just with the HRA giving your employees an understanding of their health risks or incorporate a more involved and result- driven program. Our Health Coaching is a dedicated approach to improving the health of employees and can be done over the phone or at your established on -site clinic. Health Coaching provides invaluable guidance and useful advice to employees and imparts the macinntm ROI to the employer. Health Risk Assessment in four simple steps Y. complete the survey 2. measurement of blood pressure, body mass index, weight and height 3. blood draw 4. health management begins The Healthstat Health Risk Assessment process uses early detection and treatment of chronic diseases to put employees on a path to better health. It starts with a simple look into past medical history and personal health habits via the health risk survey. Then biometric screenings are collected consisting of blood pressure, body mass index. and various blood tests. And the result is the cornerstone for improving health and productivity, leaving the employee with a better understandiug of any health risks. Employers have the option of providing a simplified paper form or a more comprehensive online format. The Healthstat solution starts with the standard health risk assessment giving your employees an understanding of their health risks. But it can be scaled to incorporate a more involved and result- driven program. After the initial assessment, a Health Coach can be added to the prix, counseling and tracking the employee's progress of improved health. Our Health Coaching is a dedicated approach that can be done over the phone, at the worksite or at the established on -site clinic. Health Coaching provides invaluable guidance and useful advice to employees and imparts the maximum ROI to the employer. When used in conjunction with a fully- functioning on -site clinic, total healthcare can be provided. The Healthstat health risk assessments are invaluable at creating awareness for individual care. But the on -site clinics become a part of' providing day -to -day risk control & monitoring and routine healthcare delivery. By being "in the building ", proactive contacts can be made to high risk employees to ensure higher participation and clinical compliance rates, consistent healthcare delivery and improvement . Through this risk control and monitoring . the outcome of the treatment regimen is measured and altered. if necessary. The focus is squarely on prevention of the chronic disease associated with the risks identified through the HILL. C3 v j heahl-stat building a healthier business Improving Employee Health To Improve The Bottom Line Reversing the Trend in Rising Healthcare Costs By Identifying and Managing Risks Healthcare costs are on the rise. And employees and their employers are feeling the pinch. Enter Healthstat — the leading provider of on -site primary care, health risk intervention and disease management senvices. We are determined to improve employee health and reduce employer healthcare costs, while also helping to reduce absenteeism and raise productivixy Through a precise and proven process of identifying individuals with health risks, followed by focused medical intervention via convenient on -site medical care clinics, Healthstat's service model facilitates improved individual health and results in a reduction of medical and prescription drug coverage costs. The Healthstat Model In contrast to traditional telephonic disease management, Healthstat primarily offers a combination of early identification of health risks on -site followed by proactive, focused on -site intervention with a clinic prodder. Although focused on preventative care and wellness education, clinic providers can also prescribe medication when necessary: Applying evidence -based clinical guidelines to ensure quality healthcare for employees, the on -site provider becomes a valuable resource for improving employee health while simultaneously improving the company's bottom line. For More I fonnation about Healthstat Please Contact: Healthstat 704.29.6161 webinfor healthstatinc.com healthstatinc.com 4601 Charlotte Park Dr / Suite 390 / Charlotte, NC 28217 heahtstat building a healthier business The Results Em lovers gain greater control over the rising cost of healthcare benefits, while employees have improved access to a convenient medical care resource. As a result, employers save money on their health care benefits, employees' individual health improves, and employees are more skilled in navigating an increasingly complex healthcare system. r � The Bottom Line Healthstat represents a ` VINAVIN'. By focusing on those individuals most at risk for major diseases, the costs of providing healthcare benefits decrease while the health of employees improves, lessening the impact of increasing healthcare costs for both employers and employees. It's how Healthstat is building healthier businesses. For More Information about Healthstat Please Contact: Healthstat 704.:129.6161 webinfo(a- ,) healthsta6nc.com healthstatinc.com 4601 Charlotte Park Dr / Suite 390 / Charlotte, NC 28217 stat ;, ,d, i Financial Guarantee for The ON of Palm Beach Gardens, FI, The Healthstat On -Site Clinic Program will provide a return on investinent of at least 1 : 1 over the first 1.5 years of the clinics' operation at the Palm Beach Gardens, FL location. The amount at risk is based on 50% of the total program administration cost paid by the Employer for the On -Site Clinic listed above based on a floating scale'. In order to qualify for this guarantee, the Employer must meet the following criteria: 1. Employer must sign a letter of intent to move forward with the implementation of an On -Site Clinic at the locations listed above no later than July 30, 2010 with the Clinic to be opened no later than October 30, 2010. 2. All levels of management (including managers and supervisors at the On -Site Clinic location) EMBRACE and SUPPORT wellness including usage of the On -Site Clinic. 3. The amount of fees at risk will be based on the actual percentage participation of employees eligible to take part in the health risk assessment and the health risk assessment participants compliance with the clinic visitation frequency guidelines2. 4. Employer mandates that all eligible employees attend at least one (1) introductory education session facilitated by a Healthstat associate detailing the program. 5. Employer provides access to the On -Site Clinic at no cost to the employee. 6. Employee is not required to "clock -out" while using the On -Site Clinic. 7. Healthstat will present a qualified candidate to staff the On -Site Clinic and Employer agrees to accept the candidate Healthstat presents. 8. Employer and Healthstat agree to the calculation used to measure the financial impact of the On- Site Clinic on medical and prescription drug claims prior to the opening of the On -Site Clinic.3 9. Employer agrees to remove from the paid claims totals any outlier claim in excess of $75,000 per claimant per year. 10. Employer agrees to provide Healthstat, Inc. detailed medical and prescription drug claims information and employee demographic data for at least the 24 -month period prior to the clinics opening and on a monthly basis after the effective date of the clinic4. CONFIDENTIAL The amount of fees at risk to be refunded to the Employer will be determined based on the actual return on investment results calculated at the end of the first 1 '/z years of clinic operation. The On- Site Clinic location return on investment will be calculated on a stand -alone basis based on the following schedule: Return on Investment Results Percentage of Fees at Risk to be Refunded 1.0 or greater : 1 0% 1 10% —0.9-. 0.8 : 1 20% 0.7 : 1 30% 0.6 : 1 40% 0.5 : 1 50% 0.4 : 1 60% 1 70% _03: 0.2 : 1 80% 0.1 : 1 90% —0.0-. 1 100% 2 The amount of the fees at risk will vary based on the actual level of participation of the eligible employees. Participation is defined as the employee's involvement in the Health Risk Assessment and compliance with the recommended clinic visitation frequency schedule determined base on each person's risk profile. The following table applies: Eligible Employee Participation Level Percentage of Total Cost Paid for the On -Site Clinic at Risk 90% 100% 80% 75% 70% 50% 69% or less 0% 3 The calculation will be based on the following formula: 1. Determine medical & RX claims per employee per year (pepy) effective on the date the clinic opened — excluding all claimants who had expenses paid in excess of $75,000 by analyzing the actual cost the Health Care Plan paid over the most - recent 24 -month period. 2. Determine the anticipated health care trend over the first 18 months after the clinic opens (for Employer's with less than 2,000 participants, health care trend is defined by the employer's health insurance carrier or third party administrator). 3. Determine the actual medical & RX claims pepy over the 18 -month period following the clinic opening date — excluding all claimants who had expenses paid in excess of $75,000 over the most recent 18 month period. 4. Analyze the difference between the actual pepy and the trended pepy to determine the pepy cost avoidance. 5. Multiply the difference between actual claims paid and the anticipated trended claims by the number of clinic participants (see definition of Participant in #2 above). 6. Compare the cost avoidance to the actual amount paid for the On -Site Clinic Program to determine the ROL ° The specific data elements will be defined in Healthstat's Health Risk Management Agreement. CK�L1�1�1�►11>r►_�It 140, Stat Detail of Proposa113y Clinic Location Location Name HQ City, State Palm Beach Gardens, FL Number of Eligible Employees 465 Number of Eligible Spouses 300 Number of Eligible Dependants 14 + 380 Number of Assumed Participants 571 Number of Clinic Hour Per Week 20 Assumed Participation 70% Paticipation 50% Participation 25% Participation Initial Clinic Set -up Cost & Details Confidential All pricing is based on the assumptions stated in Proposal. stat Service quid Cost Proposal Cost Calculation Assumption For The City of Palm Beach Gardens, FL Total Number of Eligible Employees /Spouses / Dependen 1,145 Assumed Participation Percentage 70% Ee's /50% Spouse/ 25% Number of Clinic Locations 1 Dependent 14+ Number of Participating Proposal Date 4/30/2010 Employees /Spouses /Dependents 571 Annual Cost Increase 4% Number of Clinic Hours per Week 20 Initial Clinic Set -Up Cost $16,000 Total First Year Estimated Cost Confidential All pricing is based on the assumptions stated in Proposal. $253,102.92 Pricing Assumptions, Clarifications & Details The pricing provided and number of clinic hours recommended are based upon the number of eligible employees listed. Program Participant is defined as any employee who participates in the Health Risk Assessment and /or utilizes the services of the clinic at least one time. The exact cost for the initial Clinic Equipment and Supplies will not be known until an audit of the "on hand" equipment and supplies is conducted and is estimated to be around $4,500 per clinic. The cost for the Licensing Fee for the Electronic Medical Record System is $3,500 per staff member and is due within 15 days of a signed contract. The cost of the clinic equipment and supplies ordered for clinic set up is due upon delivery. Please note this is not a fixed fee. The cost of Health Risk Assessments (including the cost for the Lipid Panel and Glucose Blood Test) has been calculated at $40.00 per participant. The cost is due no later than 30 days after completion of the Health Risk Assessments. If PSA testing is also performed for age- appropriate males, there is an additional cost. Please note, if the on- line HRA option is chosen, the payment for the $40 fee for the HRA is broken down in the following manner: Employer will be billed $5.00 prior to the HRA for each individual provided on the demographic file transmitted to Healthstat and then $35 per HRA for each participant scheduled or the number that actually participate; whichever is greater. Please note that if the group has already engaged in a health risk assessment, Healthstat will review the HRA being used. If results are recent enough and compatible with Healthstat's Healthy Life Survey, a new health risk assessment is not required. However, it is required that the results of the HRA be uploaded into the Healthstat electronic medical record, the cost of which will be billed to the Employer. The Program Administration Costs is calculated at $12.07 per program participant per month and is billed on a monthly basis but will not be less than $6,891.97 per month. This fee covers the cost for providing the following services: Inventorying, ordering and coordinating of all clinic supplies; Coordination of all billing services; General Account Management Support; and other areas of administration. The fee includes efforts and administrative costs associated with directing disease management activities for identified High Risk Participants who are not compliant with the suggested frequency guidelines or have not participated in the clinic. This fee also covers: Coordination and use of monthly demographic feeds from the employer to Healthstat; Set -up and maintenance of the Electronic Medical Record System; Archival, Retrieval and Security of all PHI; Training of clinic providers and supervising physicians on use of the Electronic Medical Record System and clinic protocols; All reporting elements; Interface between the Health Benefit Plan Administrator and Healthstat (subject to the Administrator's ability to down load the data in a format acceptable to Healthstat); Other data - related reporting services. Predictive modeling services on a quarterly basis based on the Health Risk Assessment and Clinic Encounter Data. Please note that if, in the process of negotiating the terms of Healthstat's customary contract, it is necessary to involve Healthstat's outside legal council, the cost for this review will be billed to the employer at a rate of $300 per hour. The estimated cost for each clinic provider (Nurse Practitioner) is $95.00 per hour, and this rate includes the local Supervising Physician costs. The estimated cost for each clinic provider (Medical Office Assistant) is $25.00 per hour. The proposal assumes the clinic(s) will be operational a total of 48 weeks per year. The cost for staffing the clinic in compliance with State Regulations covers Healthstat expense for the following: Clinic provider and supervising physician recruitment, credentialing, contracting, introductions and general oversight;. This fee is billed monthly, based upon the actual number of clinic provider hours utilized for clinic operations (including clinic- specific training), any required reimbursement of mileage expenses needed to attract and retain the clinic provider and the final hourly rate negotiated with the clinic provider and the supervising physician. The first month's estimated clinic provider expenses are due at the time of contract execution. If the final rate negotiated with the clinic provider and supervising physician exceeds 110% of the estimated cost, the Employer will have the right to terminate the agreement for that clinic. The cost of laboratory and /or pathology service is estimated to be $20.00 per hour. The cost for consumable administrative and medical supplies is estimated to be $0.14 per clinic participant per month. Both of these estimates are based upon the utilization of Healthstat's current client clinics. Labs and /or pathology services provided in the Healthstat clinic would otherwise be performed by an outside health care provider and generate a health plan claim. Healthstat uses a national contract with Quest Diagnostics, Inc., making the costs of labs and /or pathology services provided in the clinic less costly than the average health plan claim cost for the same service. Please note this is not a fixed fee. Costs for consumable supplies are billed as supplies are ordered. The cost for Labs and /or pathology are billed on a monthly basis. The proposal may include compensation for the named broker or consultant. Confidential All pricing is based on the assumptions stated in Proposal. En The City of Palm Beach Gardens, FL I'I )I: I IF. \I: I'1 IS' IA,F SOH "1,10\ PROJECTED SAVINGS "pith 501 %) Reduction in Trend Mature Year 1 $ 258,663 Gross Savings $ 253,103 Solution Cost $ 5,560 Net Savings Mature Year 2 $ 555,583 Gross Savings $ 236,686 Solution Cost $ 318,897 Net Savings Mature Year 3 $ 895,899 Gross Savings $ 256,451 Solution Cost $ 639,448 Net Savings ASSUME: 571 $31.82 Assumed Heal 10.0% 10.0% 10.0% 4.0% $9,049 Confidential St at $ 963,905 3 -Year Net Savings 2.29 3 -Year Return on Investment (per dollar outlay) Assumed Number of Participating Employees/ Dependents Average recurring cost per month per Assumed Participant for the Solution thcare Trend (Medical and Rx) for the following years: Year 1 Year 2 Year 3 Assumed annual increase in cost for the Healthstat Solution Assumed average annual cost for Medical and Rx claims for Participants All pricing is based on the assumptions stated in Proposal. scat 3 -Year Return on Investment Projection Cost Calculation Assumption For The City of Palm Beach Gardens, FL Total Number of Eligible Employees /Spouses /Dependents 1,145 Assumed Participation Percentage 70% Ee's /50% Spouse/ Number of Clinic Locations 1 25% Dependent 14+ Proposal Date 4/30/2010 Number of Participating Employees /Spouses /Dependents 571 Proposal Valid for 90 days from the Proposal Date Number of Clinic Hours per Week 201 Claims Cost Avoidance: $1,710,145 Reduction in Lost Work Time Due to Diversion of Healthcare from Doctor's Office to On -Site Clinic: Reduction in the cost of Primary Care due to Diversion from Doctor's Office to On -Site Clinic: Reduction in Absenteeism due to employee's improved health: Reduction of the Effects of Presenteeism: Total Gross Cost Avoidance Over 3 -Year Period: Total Cost for On -Site Clinic Over 3 -Year Period: NET COST AVOIDANCE OVER A 3 -YEAR PERIOD: 3 -YEAR RETURN ON INVESTMENT: Confidential All pricing is based on the assumptions stated in Proposal. $297,684 $174,338 n $2,182,167 $746,240 $1,435,927 2.92:1 W PPPY Medical and Rx Cost Without - Assume 10% Healthcare Trend PPPY Medical and Rx Cost With - Assume 50% Reduction Health Care Trend PPPY Medical and Rx Cost with - Assume 75% Reduction Health Care Trend Trend Year 1 Year 2 Year 3 Year 4 Year 5 Avg. cost per employee per year - 2008 Assumed annual increase in cost for the Healthstat Solution Lost Work Time Calculation Number of Clinic Hours per week Number of Weeks Per Year of Clinic Operation Number of Assumed Visits to On -Site Clinic Per Hour Assumed Hourly Rate of Pay Multiplier Per hour for true cost of lost work time Total Cost Per Hour for lost work time including the multiplier Number of Visits Per Week Number of Minutes Away from Work to Access Healthcare Total Minutes Lost Work time for employees to Access Healthcare Number of Minutes Saved by Using On -Site Clinic Percentage of Patients Who would have accessed Healthcare had there been no clinic Conservative Number of Minutes Saved Weekly Savings Due to Lost Work Time Annual Savings Due to Lost Work Time based on number of weeks per year listed above 3 -year Savings Due to Lost Work Time based on number of weeks per year listed above Diversion of Healthcare Calculation Number of Encounters Per Year Number of Encounters over 3 years Average Cost Per Encounter over 3 years Difference Per Visit Total Diversion of Healthcare Cost by Using On -Site Clinic vs. MD Office over 3 years Total Diversion of Healthcare Cost by Using On -Site Clinic vs. MD Office over 3 years based on conservative estimate of people who would have gone if there wasn't convenient Healthcare Confidential 9,049 4% On -Site Clinic MD Office 20 48 3 $20.00 1.61 $32.20 60 30 1800 6420 60% 3852 $2,067.24 $99,228 $297,684.00 On -Site Clinic 2880 8640 $86.37 $33.63 $290,563.20 $174,337.92 All pricing is based on the assumptions stated in Proposal. 3 $20.00 1.61 $32.20 60 137 8220 MD Office $120.00 18 Months 30 Months 42 Months 54 Months 66 Months 6 Months After After Clinic After Clinic After Clinc After Clinc After Clinc Clinic Opens Opens Opens Opens Opens Opens $9,049 $9,954 $10,949 $12,044 $13,248 $14,573 $9,049 $9,501 $9,976 $10,475 $10,999 $11,549 $9,049 $9,275 $9,507 $9,745 $9,989 $10,239 10.00% 5.00% 2.50% 10.00% 5.00% 2.50% 10.00% 5.00% 2.50% 10.00% 5.00% 2.50% 10.00% 5.00% 2.50% 9,049 4% On -Site Clinic MD Office 20 48 3 $20.00 1.61 $32.20 60 30 1800 6420 60% 3852 $2,067.24 $99,228 $297,684.00 On -Site Clinic 2880 8640 $86.37 $33.63 $290,563.20 $174,337.92 All pricing is based on the assumptions stated in Proposal. 3 $20.00 1.61 $32.20 60 137 8220 MD Office $120.00 Presentation Booklet its novia Bill Crimmins 765.720.0392 The Symptoms [-s I, I Average growth in health care costs all plan wpra nM putl�ipae Deuln wmNewO 0 Isle lero zoos toot zaz tool xa zoos zmo Colo zon ■Meaeal ■ katal The Symptoms Employer costs are 39% more than in 2003 $5,100 vs. $7,080 Employee costs are 61 % more than in 2003 $1,284 vs. $2,064 Towers Perrin 2008 Holth Care Cost Su- The Problem 2 of every 3 adults are overweight 1 of every 4 adults smoke 1 of every 3 adults have high blood pressure 1 of every 3 adults have high cholesterol 3 of every 4 adults fail to get enough exercise 4 of every 5 adults need to improve their diet The Problem 87.5% of health care claim costs are due to an individuals lifestyle! 919,o00 an,o90 Annual Medial Costs 0.000 H.000 Maua University- Purdue University Fort Wayne Study, 2006 Correlation: Costs, Risks, and BMI MU= a 35 b H.9 -39.9 2 "We have to move from illness to wellness. Businesses will have to invest in wellness. There is no choice. It's not philanthropy. It's enlightened self - interest." Shrittivas M. Shanbhag, Reliance Industries "Employers of all sizes are coming to realize the value of preventative health, and on -site clinics have proven to be a logical host..." Michael J. Critelli, Executive Chairman of Pitney -Bowes i j: Novia on -site clinics improve the health of your employees and their dependents by serving as the focal point for combining medical care and wellness. 3 On -site clinics save money by: • :• Reducing medical benefit costs .• Increasing productivity •3 Improving employee health Reduce Medical Benefit Costs by Exchanging Retail for Wholesale :• Physician services •:• Reducing use of Specialist • :• Prescription drugs •:• Laboratory tests Average Primary Care Costs PEPM Basis End Novia C— Clinics Services $150.00* $65.32 ** Phys"n/Nurse/Staff costs Basic Generic Drug costs (no controlled substances) Laboratory Test costs (blood draws, urine tests, etc) supplies costs (typical office) Management Fees (back office overhead and administration) ' of mchh,dwg amW m pW o, omlf -pakn • 8—d oo Now Cm Cl —hs Through I Im" N Trend of Increase Use of Specialist • Specialist average cost per visit* $480 • Clinic Average cost per visit** 80 Savings each time a Specialist visit is avoided $400 t In a recent analysis of a group they had 1230 Specialist visits last year. if we got just 20% of those people to use the clinic, the savings would be 1230 X 20 %= 246 X $400 _ $98,400... Almost $100,000 •.wt —1 bm nu RX rens. -d ttX Prescription Drug Cost Control �• Brand to Generic substitution ❖ Generic to Generic Price Reductions Lifestyle change to eliminate use of Prescription Drugs Brand / Generic Drug Cost Brand PBM Generic Clinic Prevacid 128.11 Omeprazole 17.86 Lipitor 91.12 Lovastatin 13.16 Advav Diskus 170.31 Fluticasone Prop. 9.01 Allegra D 80.92 Fewfenadine HCl 33.87 Diovm HCT 21.65 Lisinopril HCT 3.81 Caduet 121.57 .4mlodopine Bes. Ln.l Lovastatin I,, Io iornl _lG �Q j' Cost u.m xar. tiara aatud P6.mwy tNart far ?009 I Generic to Generic Drug Cost Genetic PBM Clinic Simvastatin 21.99 3.21 Omeprazole 82.11 18.86 Bupropion HCL XL 63.68 39.07 Sertraline HCL 70.34 11.61 Azithromycin 21.95 7.86 Pravastatin Sodium 24.99 4.36 Gabapentin 300 49.21 10.68 C -1-wer aoru Gam actual pharmacy r" l r 1009 Laboratory Testing Costs TIMI Elm C L49 Complete CBC W /Auto Diff 525.31 $3.20 Lipid Panel 28.65 7.50 Basic Metabolic Panel 34.44 5.10 Compreha ive Metabolic Panel 38.96 5.80 Hepatic Function Panel 31.43 4.80 Urinalysis, Routine 51.36 4.20 Assay of Thyroid Stimulating Hormone 33.47 14.00 Prothrombin Time 22.54 3.70 Glucose Serum 10.31 4.20 - > WLaboratory Testing Savings 7st 4 of 2005 Tests Price Savinu IQta1 Complete CBC W /Auto Diff 453 $22.11 $11,465.43 Lipid Panel 221 21.15 4,674.15 Basic Metabolic Panel 341 29.34 10,004.94 Comprehensive Metabolic Panel 195 33.16 6,466,20 Hepatic Function Panel 92 26.63 2.449.92 Urinalysis, Routine 20 47.16 943.70 Prothrombin Time 77 18.84 1,040.68 Glucose Serum 53 6.11 32183 Total Savings for the nine tests... $37,368.85 RI Reducing Annual Medical Trend Current medical trend at 12% - 15% nationwide ❖ The Clinic model Novia uses currently run at 6% medical trend' 4% Vend %dmx_+ oVaalmB mmwmn 7 y Increase Productivity Reduced Time Away From Work ❖ For the actual office visit ❖ Managing Workman's Comp claims s Long term reduction in absenteeism Increase Productivity Average time away from work for physician office visit Retail physician 3.2 hours On -Site clinic .5 hours Productivity gain of 2.8 hours per visit 7 Medical $10,000,000 $11,400,000 $12,996,000 $14,815,000 @ 1 d% td $10,000,000 $10,600,000 $11,236,000 $11,910,000 @6% trenrend Q 6'% Projected claims sa ving. $800,000 $1,760,000 $2,906,000 wl Novia Ca.Clinic %dmx_+ oVaalmB mmwmn 7 y Increase Productivity Reduced Time Away From Work ❖ For the actual office visit ❖ Managing Workman's Comp claims s Long term reduction in absenteeism Increase Productivity Average time away from work for physician office visit Retail physician 3.2 hours On -Site clinic .5 hours Productivity gain of 2.8 hours per visit 7 Increase Productivity Reduced Time Away From Work •:• Employees average 3.3 visits per year 3.3 visits x 2.8 hours saved per visit ❖ Increased productivity of 9.24 hours •:• More than one day per employee per year! Increase Productivity Reduce the effect of presenteeism defined as the cost of lost productivity when physical and mental health issues inhibit the workers ability to perform to their full potential. The estimated economic cost for presenteeism averages $2,132 per employee per year! Journal of Occupational and Environmental Medicine, Aug. 2005 Manage Workman's Compensation Costs s• Handle worksite injuries when open :• Monitor treating physicians for other worksite injuries Increase Productivity & Manage Work Comp. /Occ. Health Costs ❖ Average office visit length = 3.2 hrs •:• On -site clinic visit length = .5 hrs Productivity Gain = 2.8 hrs!! Higher productivity through greater convenience!! s 1 st report of injury during operating hours Pre- employment, DOT, Police and Fire physicals Thug Testing Health Coaches •:• Personal Health Advocate ❖ Staff of 32 Registered Nurses ❖ Health Coach accredited through the University of Wisconsin •:• 20 Specialties including weight loss, smoking cessation, nutrition, stress and chronic disease management, etc. O Electronic Clinic Management System • :• Web based .• Patient Records ❖ On -line Appointment Scheduler ❖ Patient Access to Personal Medical Data Employer Access to Aggregate Clinic Data What Employees / Dependents Get Free of Charge Primary Care — Colds, Flu, Asthma, Diabetes, etc. fi Preventive Care — Wellness testing, Physicals, etc. Pharmaceuticals — Medications Dispensed on Site Fast Easy Access — More time with Doctor but less time waiting On -site Clinic Minimums '. One (1) Board Certified Physician •e One (1) Nurse or Qualified Medical Assistant 4• Eight hundred (800) Square Feet of Space :• One (1) Exam Room :• One (1) Prep and Storage Room ti• One (1) Restroom One (1) Reception Area On -going Clinic Costs ❖ Staffing — Physicians, Nurses etc. o Generic Drugs •:� Lab Tests ❖ Replacement Supplies r,. Clinic Management Fee Liability Insurance Addressed :• Neither the employer nor Novia CareClinics is involved in the practice of medicine Physician provides primary medical malpractice coverage Liability Insurance Addressed Employer is party of indemnification by Novia CareClinics {o Novia CareClinics strengthens the indemnification by maintaining secondary medical malpractice insurance from an A rated insurer Does it really work? Reported Results afta on[ year from a Honda Supplier P- Opening Health Fair (blood draw) I89 people Nurse coaching supporting doctor's recommendations 27 trying to quit smoking ReWaa sm Firq cmrWmP -Fa. 11 associates have quit smokkg 5 associates are alive today - PR ICE l ES S 93 trying to lose weight Pnvb,s W.'.M Wreeer. mwanp -e iea 83 Irft to change sedentary lifestyle F.w,n aa. _ _.Q W.Pr^'.9 psyl..tetW. J MM.G 112 trying to reduce their risk of heart disease 1 OD trykg to decease risk of diabetes 83 trying to decrease hypertension 39 requested educational material Associates actually, requested'heakhier selections be put in vending machines Does it really work? HR Director Manufacturing Firm after 9 Months "Novia CareClinics reduced employee absenteeism due to availability of the on -site doctor, thereby improving productivity sufficiently in just a few months to pay for the entire annual cost of the clinic plafform." -Dave Milbee, Human Resource Director, Biddle Precision Components, Sheridan, Indiana 12 Confidence in our Performance Novia CareClinics operates on a twelve month contract allowing cancellation without cause with sixty day notice Novia's System Proprk�vey �echvobp whih vlbm \'o.y �o uae d— m ahr hr.nw..uo<....r.�., ved empbyvr proMvbWry. 13 Encounter Data Integration Using HL7, version 3 format Meets federal data exchange standards Summary level for encounter data, no claims data Encounter data can be exported to Case Management Health Coaching data can be exported to Case Management -e Labcorp data interface Predictive Modeling Novia intends that the predictive modeling output perform three critical functions: h (2) provide the basis for ongoing consulting with the employer on their focus on wellness efforts within the workplace, and (3) demonstrate the impact of these measures on expected future health costs Predictive Modeling Novia intends that the predictive modeling output perform three critical functions: (1) Guide health coaching and intervention through the clinic and as needed with referral to the participating health system (2) .provide the basis for ongoing consulting with th employer on their foc us on wellam efforts within the workplace. and (3) demonstrate the impact ofthese measures on expected futurehealth costs 14 Predictive Modeling Novia intends that the predictive modeling output perform three critical functions: (1) Guide health coaching and intervention through the clinic and as needed with referral to the participating health system (2) provide the basis for ongoing consulting with the employer on their focus on wellness efforts within the workplace, and (3) demonstrate the hnnact of these measures once peted future health costs Accuracy of Predictive Model Predicted Cats By Member — versus Actual Costs Experienced that Ycar foa � I.ry+M FrA pool s � ode ryq of rnombm nNn � nrrfe afae0ne0 mu Lan brw prpdided a Ow bij�e. 1100.oup, erA v1h I f26 mamben) Impact Potential — Clinical Gaps �rl ©a P— np.ra. 15 Forecasting High Risk Members Z MwnWr aNrt a�OOrt On -Site Clinics Fit All Sizes N=0a of tmolOVe6 �ptQy,g i£ I85 Biddle Precision Components N 315 Batesville Tool & Die N 340 Brownsburg Community Schools IN 400 Concord Community Schools N 450 Center Grove Community Schools N 540 MSD of Washington Township N 600 DTR Industries OH 990 Elkhart County Government N 1100 Keihin IPT IN The Solution Give a Man a Fish, Feed Him For a Day. Teach a Man to Fish, Feed Him For a Lifetime" —Lao Tzu 16 Next Step... Prepare formal proposal, including pro forma •: Visit operational clinic if desired •:• After you say yes: •: Physician recruitment Clinic location and build -out i Employ- meetings :• Begin operations From yes to opening, 90 -120 days ��. A' elk HEALTHCARE HAS A NEW ADDRESS. YOURS. 17