VNAB Pricing Recommendation

Visiting Nurses Association of Boston Wellness Program

Melissa HuiLulu Li

Victor PanPhil Rapp

Founded in 1886, largest VNA in the country. The Wellness Program is a non-profit enterprise with 1 full time employee

Provides health related programs and screenings aimed to help clients keep their employees healthy

Corporate Wellness

Community Outreach

VNAB Background

Profits fund free community clinics

Corporate Wellness:

• Health Screening, Immunization and Educational Presentations

• Over 300 clients• 97% of revenue from Flu

Clinics• New screening technologies

for blood pressure, glucose and cholesterol

Community Outreach:

• Free clinics for the community; no revenue

• 71% volume of spending is on Community Outreach

• Is funded by profits from Corporate Wellness

Current State

Health Screenings Blood Pressure

$75/hr. 2 hr min Blood Glucose

$125/hr + $5/person. 2 hr min.

Cholesterol $125/hr + $5/person. 2 hr min.

Body Mass Index (BMI) $75/hr. 2 hr min

Tuberculosis Testing (TB) $125/hr + $5/person.

Hand Washing Demonstrations

Educational Presentations $500/hr Work/Life Issues Ergonomics Seasonal Wellness Nutrition Alternative Healing Techniques

Immunizations Influenza (Flu)

$25/shot. $625 min. H1N1 Pneumococcal Hepatitis A Hepatitis B Shingles Measles/Mumps/Rubella (MMR) Meningococcal

Current Services Provided

Current Marketing Strategy

Initiatives

Direct Mail to managers

Monthly E-Newsletter

Clinic Sign Ups Email Blast

Tele-market to past clients

Thank you cards

Industry Trends•MA

insurance companies required to give complementary preventative care

Health care bill 2015

•Convenient to individuals and cost effective for employers

•CVS, Walgreens, Rite Aid

Minute Clinics

•Purchase in bulk and offer a wider array of services

Large Insurance Companies:

•Not re-booking health services

Tighter Budgets:

Customers not aware of value offered by VNAB

Problem

VNAB Success

Personnel and Incentives

Communicate ValueIdentify Value

RecommendationsIdentify Value

Communicating ValuePersonnel and Incentives

Identifying Value

Cost Savings: Medical Insurance

On average, $3.27-4.50 savings on medical insurance per dollar spent on wellness

The lower the risk, the lower the insurance premium

Shifting down the risk groups decreases overall insurance cost

94% of companies with wellness programs reported medical cost savings

Identifying Value*supported by exhibit

Graph from VNAB Internal Report

Identifying Value

Wellness Programs Reduce Employee Health Risks

Cost Savings: Prevent Absenteeism and Increase Productivity

$2.73 savings from absenteeism per dollar spent on wellness

Healthier employees are more productive than sick ones

Retention = Lower the cost to replace an absent worker

Identifying Value

Cost Savings: Employee Time Time is money. Save time. Save money. Save time for the commute to hospitals, testing,

and waiting for test results. Have a comprehensive set of results from one

reliable source. Minimum work disruption

Identifying Value

Communicating Value

Problem: Extensive variety of customers

◦ Heterogeneous customers Blue Man Group, Bank of America, Harpoon Brewery

◦ No customer criteria

Solution:

Identify Target Market

Now: Customer fit VNAB products

Ideal: Products fit customers

CommunicatingValue

Customized Product Offerings

CommunicatingValue

Bundle

Screenings Educational Seminars Immunizations

Current State – Products sold separately

Ideal State – Bundle and customize packages

Problem: Website: Informative,

but not sales oriented

Pamphlet not congruent with website information

Lack of advertisements targeting buying center

Solution: Need aligned marketing

strategy

Targeted Promotions

CommunicatingValue

Personnel & Incentives

Poor sales performance

Volatile sales distribution

Diminished Awareness of ValueValue Proposition of complete product suite un-communicated

Ineffective Marketing Initiatives

Direct mail, Telemarketing Part time nurses distributing pamphlets

Problem: No dedicated sales staff

PersonnelAnd Incentives

$370,784

$11,286

Flu ClinicsOther Coporate Wellness Revenue

Sales Distribution

PersonnelAnd Incentives

Promote entire product suite

Spread sales beyond flu shot packages

Competitive frame of reference improved vs. Insurance companies

Solution:Create Full time Sales-force

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PersonnelAnd Incentives

QUESTIONS?

Exhibits and Appendices

Ex 1: MetLife Case Study

Ex 2: Health Affairs

Risk Categorization and Distribution of Employees

Ex 3:Effectiveness of Wellness Programs for Various Health Conditions

Bibliography Albert, Steven M., and Richard Schulz. Working Caregivers and Employer Health Care Costs.

Rep. MetLife Mature Market Institute, Feb. 2010. Web. 24 Apr. 2011. <http://www.metlife.com/assets/cao/mmi/publications/studies/2010/mmi-working-caregivers-employers-health-care-costs.pdf>.

Baicker, Katherine, David Cutler, and Zirui Song. "Workplace Wellness Programs Can Generate Savings." Health Affairs 29.2 (2010): 1-8. Kibble & Prentice. The People-to-People Health Foundation, Inc., Feb. 2010. Web. 24 Apr. 2011. <http://www.kpcom.com/newsletters/documents/Workplace%20Wellness%20Programs%20can%20generate%20savings.pdf>.

Loeppke, Ronald, Dee W. Edington, and Sami Be'g. "Impact of the Prevention Plan on Employee Health Risk Reduction." Population Health Management 14.5 (2010): 275-83. US Preventative Medicine. 2010. Web. 24 Apr. 2011. <http://www.uspreventivemedicine.com/Files/PDFs/In-Line/Research-Study-Population-Health-Management-journa.aspx>.

"How Does Health Care Reform Affect You?" Mass.Gov. Executive Office of Health and Human Services, 2011. Web. 23 Apr. 2011. <http://www.mass.gov/?pageID=eohhs2modulechunk>.

"CVS Minute Clinic." 2011. Web. 23 Apr. 2011 http://minuteclinic.com "How Will the 300 Minute Clinics in 2007 Impact Current Medical Practice?" OnThePharm.

Web. 26 Apr. 2011. <http://onthepharm.net/2007/02/minute-clinic-retail-medical-practice.html>. Shimp, Bradford |. "Small Business Healthcare: Don’t Give Up Your Plan Just Yet." Blog | All

Business Answers. 23 Mar. 2010. Web. 26 Apr. 2011. <http://allbizanswers.com/small-business-healthcare-dont-give-up-your-plan-just-yet/>.

 VNAB. Visiting Nurses Association of Boston 2009 Wellness Overview. Internal Report. 2011. Print.

VNAB. Visiting Nurses Association of Boston 2011 Wellness Plan. Internal Report. 2011. Print.