The Eventual fate of Boss Based Medicinal services:.

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The Fate of Boss Based Human services Midwest Business Bunch on Wellbeing May 10-11, 2007 A Fine Wreckage We Have Ourselves Into Buyers Not Purchasing Right Arranges Not Giving Supplier Esteem A chance to indicate Through Suppliers Not Seeing Business Case for Reengineering
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The Future of Employer Based Health Care Midwest Business Group on Health May 10-11, 2007

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A Fine Mess We’ve Got Ourselves Into Purchasers Not Buying Right Plans Not Letting Provider Value Show Through Providers Not Seeing Business Case for Reengineering Patients Not In the Quality Game

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Competitive Disadvantage for Employers Health Care Spending As Proportion of GDP Among US Major Trading Partners, 2003 Source: OECD

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Competitive Disadvantage for Workers

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Big Bucks – No Bang

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Cadillac Prices, Yugo Quality… Condition % Receiving Recommended Care* Breast cancer 76% Heart assault & coronary supply route disease 68% Immunizations 66% High blood pressure 65% Asthma 53% Diabetes 45% Urinary tract infection 41% Sexually transmitted diseases 37% *McGlynn, et. al, New England Journal of Medicine , 2003

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Injury to Insult 44,000-98,000 or more passings from mistakes amid hospitalizations 7,000 passings from drug blunders alone Ambulatory obscure Source: Institute of Medicine

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Consumer Disconnect From Cost Source of Private Health Care Expenditures As Share of National Total Source: Office of the Actuary, Centers for Medicare & Medicaid Services

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American’s Aren’t Paying the Bill – They’re Still Not Happy Source: Harris Interactive Poll

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And the American Public is Losing Patience… Source: Harris Interactive Poll

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An Information Technology Wasteland Average spent per specialist on IT in social insurance – $1,000 per laborer Average spent per laborer on IT in different commercial ventures – $8,000 Source: Department of Health and Human Services

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IT Proliferation on a Slow Track Electronic Health Records Adoption Curve Time to Move From 10% to 80% Adoption VCRs – 7 Years E-mail – 11 years Home PC - > 15 Years Bush objective of 100% by 2014 Source: The RAND Corporation

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Medium and Small Employers Bail Out Firms With 3-199 Employees Offering Health Benefits Source: Kaiser Family Foundation, Employer Health Benefits, 2005

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Increasing Pressure on Public System Medicare Spending Components As Proportion of GDP Source: Medicare Trustee’s Report, 2005

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Employer Responses Managed consideration Cost moving Consumer coordinated wellbeing arrangements Transparency and P4P Drop scope

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Where Do We Go From Here?

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Do you trust the present framework can be managed?

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CHRO View 81% System can\'t be supported

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Do you trust the present vocation based framework ought to be reinforced and kept up?

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CHRO View 46.8% System of business based coverage ought to be fortified and maintained

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It’s Time to Get Our House in Order…

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Transparency a Priority Require arrangements and suppliers to freely report quality and expense

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So is Pay-for-Performance Require arrangements and suppliers to openly report quality and expense

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Steve Wetzell Executive Vice President, Health Care Initiatives (202) 789-7636 swetzell

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