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Copyright © 2014 Healthways, Inc. All rights reserved. Friday, 7 November 2014 Peter Choueiri, President Healthways International Time to act! From Well–Being Measurement to Well– Being Improvement Practitioner Keynote: Managing for Well-Being

Well Being as Business Purpose, Choueiri

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Page 1: Well Being as Business Purpose, Choueiri

Copyright © 2014 Healthways, Inc. All rights reserved.

Friday, 7 November 2014

Peter Choueiri, President Healthways International

Time to act! From Well–Being Measurement to Well–Being Improvement

Practitioner Keynote: Managing for Well-Being

Page 2: Well Being as Business Purpose, Choueiri

Our approach to Well-Being measurement

Page 3: Well Being as Business Purpose, Choueiri

Fellow travellers in well-being measurement Gallup-Healthways Global Well-Being Index, OECD Better Life Index

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• Builds on >10 years of OECD interest in measuring societal performance more broadly than simply economics

• Covers 34 countries (OECD members, plus Brazil and Russia)

• Two areas, comprising 11 topics the OECD has identified as essential to well-being:

1. Material living conditions (housing, income, jobs), and

2. Quality of life (community, education, environment, governance, health, life satisfaction, safety and work-life balance)

• Builds on Gallup-Healthways partnership for well-being measurement and improvement launched 2008, and US well-being index reports since 2008

• Now covers 135 countries worldwide

• Five elements of well-being measured everywhere using 10 standard questions (culturally translated for each language)

1. Purpose

2. Social

3. Community

4. Financial

5. Physical

• http://info.healthways.com/wellbeingindex

Page 4: Well Being as Business Purpose, Choueiri

Comparison of methodologies

General form of a Subjective Well-Being Equation Subjective Well-Being = Function1 x Variable1 + … Functionn x Variablen

Two measures Two domains, nine

objective dimensions

Ten questions across five elements

OECD Better Life Index

Gallup-Healthways Well-Being Index

Prioritisation of well-being domains for intervention can be based initially on either report

Highly complementary methodologies

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Page 5: Well Being as Business Purpose, Choueiri

Gallup-Healthways’ definition of Well-Being

− Purpose: Liking what you do each day and being motivated to achieve goals

− Social: Having supportive relationships and love in your life

− Financial: Managing your economic life to reduce stress and increase security

− Community: Liking where you live, feeling safe, and having pride in your community

− Physical: Having good health and enough energy to get things done daily

PURPOSE

SOCIAL

FINANCIAL

COMMUNITY

PHYSICAL

Well-being is comprised of five elements – and all five are interrelated and interdependent.

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Page 6: Well Being as Business Purpose, Choueiri

Denmark 40%

Austria 39%

Sweden 36%

Netherlands 33%

Malta 28%

United Kingdom 28%

Ireland 27%

Germany 27%

Iceland 26%

Spain 24%

Kosovo 24%

Belgium 23%

Finland 23%

Luxembourg 21%

North Cyprus 21%

Portugal 20%

France 19%

Slovenia 18%

Hungary 18%

Poland 17%

Slovakia 16%

Cyprus 15%

Macedonia 14%

Romania 14%

Czech Republic 13%

Bulgaria 12%

Montenegro 10%

Serbia 10%

Greece 10%

Bosnia

Herzegovina 10%

Albania 8%

Italy 8%

Croatia 7%

Significant variations in Well-Being by country % country residents thriving in at least 3 of 5 elements

Denmark leads Europe; UK, Germany, and Spain in Top 10; France in the middle

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Within countries, significant variation between organisations

100 0 High Low Low-Mid Mid Mid-High

Well-Being Score

Distribution of Individual Well-Being Scores % of population with given score

Black line is average of national nightly survey

Colored lines represent six

example companies

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Page 8: Well Being as Business Purpose, Choueiri

Well-Being Drives Business Performance

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Well-Being Assessment Results by Business Unit

Overall Life

Evaluation

Emotional

Health

Physical

Health

Healthy

Behavior

Work

Environment

Basic

Access

% at Optimal

Income

68.4 60.9 76.4 78.1 62.6 46.9 85.5 41.7%

73.5 73.1 80.6 80.2 65.1 53.7 88.1 66.7%

72.4 70.4 79.7 82.4 66.3 49.5 86.0 64.5%

72.0 71.4 73.8 81.1 67.0 51.2 85.9 59.6%

72.0 69.6 78.6 78.1 65.6 52.6 88.6 39.2%

71.9 66.5 78.4 78.6 66.5 54.9 86.7 50.3%

71.8 64.5 79.1 81.5 64.9 53.9 86.9 69.2%

71.4 68.6 78.0 78.5 67.5 49.3 86.7 47.9%

71.2 67.7 80.0 81.7 64.4 49.1 84.5 51.4%

70.6 60.7 76.5 80.2 66.5 51.9 85.4 44.9%

70.6 65.8 79.6 77.6 62.6 54.4 86.0 41.6%

70.0 63.9 76.2 80.3 63.6 48.5 87.4 55.6%

69.7 58.0 76.5 78.4 68.4 53.2 83.6 63.6%

69.6 62.5 75.0 79.0 65.0 50.0 86.0 56.2%

69.2 64.7 77.5 76.8 62.6 46.0 87.9 51.8%

69.1 60.8 76.8 78.1 61.9 52.2 85.0 39.3%

68.6 61.6 75.5 76.8 65.2 46.4 86.2 51.8%

68.6 59.6 76.3 80.3 66.4 44.4 84.8 41.6%

68.1 59.9 77.9 78.9 61.5 45.3 85.0 40.8%

67.8 58.0 75.7 78.1 63.9 43.4 87.7 57.2%

66.3 58.3 74.7 76.4 59.2 46.0 83.3 31.7%

66.2 52.4 75.0 76.9 61.1 45.4 86.5 37.9%

65.8 59.1 76.4 75.8 53.4 45.6 84.2 28.4%

65.7 57.3 73.9 76.8 61.7 40.1 84.2 36.6%

65.5 56.8 76.3 76.7 56.8 43.2 83.4 28.3%

64.5 52.5 73.0 75.3 60.2 42.4 83.8 26.8%

Top Quintile

2nd Quintile

3rd Quintile

4th Quintile

5th Quintile

Well-Being Scores

Internal Corporate Measure:

Percent at Optimal Income

Ranking 25 Business Units by Well-Being Score

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The Right View Leads to The Right Intervention

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OLIVER HARRISON

• Overall score (out of 100)

• Gap analysis for each of the five

elements

• Analysis of underlying risks and/or

behaviours

• Specific recommendations for action

overall and within each element

• Proven “launch pad” for engaging

individuals to create their own Well-

Being Improvement Plan

Page 10: Well Being as Business Purpose, Choueiri

Why Well-Being improvement matters

Page 11: Well Being as Business Purpose, Choueiri

People with higher Well-Being cost less and are

more productive

Basic Premise

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Our Simulation Model

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• An epidemiology-based model that simulates the complex relationships that exist between chronic conditions and modifiable behaviors

• No claims data needed; built on national datasets • Projects ten years of medical and productivity savings by condition and

modifiable behavior. • Simulates the incidence and progression of diseases over time.

Simulation model developed by Healthways and BCG, with support of WEF

Goals 1. To suggest to senior executives and managers ways of

thinking about well-being as a corporate strategic topic 2. To assess the healthcare and productivity costs associated

with the highest lifestyle risks and most costly chronic conditions

3. To show how the presence of a comprehensive well-being program would affect healthcare costs and productivity

Page 13: Well Being as Business Purpose, Choueiri

Building the Epidemiology Engine http://wellness.weforum.org

www.healthways.com

Demographic Segmentation

Initial Participant Characteristics

• Modifiable Behaviors

• Conditions • Participation

Modifiable Behaviors

Chronic Conditions

Value Creation • Baseline • HWAY Impact

Medical Cost

Productivity

Intervention Impact

Customizable Inputs

Assumptions Based Epidemiological Engine

Assign Initial Member Level Characteristics

Assign Cost to Severity of Existing

Conditions

Managing principal, leading actuarial and healthcare

research company, Healthcare economic expert,

Harvard University

Epidemiologist, Harvard School of Public Health

Health Policy expert, Harvard Medical School

Health management expert, Johns Hopkins Bloomberg School of Public

Health

Clinical and health psychologist, University of Rhode Island

CEO, leading behavior change company Economist, Cornell University

Health policy expert, Harvard Medical School

Productivity expert, Cornell University

External Experts Had Significant Input on Model Development

13 Copyright © 2014 Healthways, Inc. All rights reserved.

Page 14: Well Being as Business Purpose, Choueiri

Opportunity of doing something: Economic savings Australia

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8

61

Inactivity Diet Smoking Alcohol Poor Std of

Care

Stress Sleep Screening All

Interventions

Source Healthways, World Economic Forum Simulation Model (2012)

Productivity savings

Medical savings

10-year cumulative savings from well-being improvement

€ Billion

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Opportunity of doing something: Economic savings United Kingdom

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166

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Inactivity Diet Smoking Alcohol Poor Std of

Care

Stress Sleep Screening All

Interventions

Source Healthways, World Economic Forum Simulation Model (2012)

10-year cumulative savings from well-being improvement

€ Billion

Productivity savings

Medical savings

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Opportunity of doing something: Economic savings Germany

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143

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Inactivity Diet Smoking Alcohol Poor Std of

Care

Stress Sleep Screening All

Interventions

Source Healthways, World Economic Forum Simulation Model (2012)

10-year cumulative savings from well-being improvement

€ Billion

Productivity savings

Medical savings

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19%

39%

26%

16%

Compounding Financial & Social Well-Being Risk

Well-Being Risks Interact to Drive Up Cost

Health Cost for Individuals with Chronic Disease

44%

39%

14%

3%

No Compounding Well-Being Risks

28%

40%

21%

11%

Compounding Health Well-Being Risks

Low (<$1500)

Medium (<=$6000)

High (<=18000)

Very High (>$18000)

Health Plan 2012

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Conclusions on value

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High Costs of Doing Nothing

• Both medical and productivity costs impose heavy financial burdens on

countries, communities and companies

• Without interventions, these costs can be expected to grow and compound

The Primary Sources of These Costs are Known

• Chronic conditions cause people to seek care (medical costs) and reduce their

ability to work (productivity)

• While behaviors do not have costs associated with them, the conditions they

create and exacerbate can have substantial costs

Intervening in Modifiable Behaviors Reduces Costs

• Curtailing or eliminating behavioral risks can reduce costly chronic conditions

• Addressing risks before they become conditions will be a significant source of

savings

We have the tools to improve Well-Weing. Now we need to make it a priority.

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Can Well-Being be actively improved?

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Higher Well-Being means lowers medical costs

Higher Well-Being = Lower cost Higher Well-Being = Lower utilisation

10.1%

18.4%

10.0%

14.2%

5.3%

9.6%

Individual Well-Being score

% Respondents with hospital utilisation in 12 months after WBA

Medium: >50-75 High: >75-100 Low: 0-50

Hospital admissions $5,172

$3,765

$1,048

$3,399

$2,605

$771

$1,885

$1,507

$344

Individual Well-Being score

Medium: >50-75 High: >75-100 Low: 0-50

Median costs in 12 months after WBA

Source Science and Value Team, Healthways

ILLUSTRATIVE

Lower costs Lower costs

ER visits

Total cost Medical cost Prescription cost

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Page 21: Well Being as Business Purpose, Choueiri

Chart colors

Table colors

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Fortune 50 and Fortune 100 Case Studies

Fortune 50 Case Study

A pilot study program including:

• Well-Being Assessment

• Health Risk Coaching

• Disease Management

Well-Being Improved Significantly in Matched Respondents

Fortune 100 Case Study

A comprehensive program including:

• Well-Being Assessment

• Bio-metric Screening

• Health Risk Coaching

• QuitNet

• Daily Challenge

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Cost Goes Down When Well-Being Goes Up

Source: “Evaluation of the Relationship Between Individual Well-Being and Future Health Care

Utilization and Cost” Population Health Management, Volume 15, Number 00 2012. Patricia L.

Harrison, MPH, James E. Pope, MD, Carter R. Coberley, PhD, and Elizabeth Y. Rula, PhD

1 Point =

2.2% likelihood of hospital admission

1.7% likelihood of ER visit

1.0% likelihood of incurring healthcare costs

Population Well-Being

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Performance Goes Up When Well-Being Goes Up

10 %

Workforce Well-Being

5% fewer unscheduled absences

24% lower presenteeism

5% higher reported job performance

6% more days of ‘best work’ in 28-day period

Source: “Evaluation of the Relationship Between Individual Well-Being and Future Health Care

Utilization and Cost” Population Health Management, Volume 15, Number 00 2012. Patricia L.

Harrison, MPH, James E. Pope, MD, Carter R. Coberley, PhD, and Elizabeth Y. Rula, PhD

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Practical Advice for Well-Being Improvement

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• 10,000s of small decisions every day, every year

• Frequent gap between how people would like to act and how they really act

• Key question is: How can we support everyday decision making to improve health and well-being outcomes?

Today global disease burden is dominated by chronic diseases which accumulate over many years

High

Low

Medium

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“99% decisions are

made by your auto-

pilot which has a

mind of its own” Daniel Kahneman

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1. Engagement – finding people where they are… (…not where we want them to be)

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Mobile Apps

Web Telephone

Social media

Face-to-face

Daily routine,

e.g. supermarket check-out

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2. Leverage evidence-based tools – don’t reinvent the wheel

1. Exercise

2. Healthy eating

3. Stress management

4. Weight management

5. Tobacco cessation

6. Appointment adherence

7. Medication adherence

8. Depression prevention

9. Self-care

10.Etc.

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Health coaching and online health management with proven outcomes: Enable to set personal targets and identify steps to achieve those targets

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Pre-awareness

Awareness

Contem-plation

Trial

Loyalty

3. Behaviour change requires understanding individuals’ dynamic “readiness for change”

Transtheoretical Model: Assessing readiness for change

When is someone ready to change their

behaviour?

Given someone’s state of change what’s the most

effective approach?

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Item Principle

Messenger We are heavily influenced by who communicates information

Incentives Our responses to incentives are shaped by predictable mental

shortcuts, such as strongly avoiding losses

Norms We are strongly influenced by what others do

Defaults We ‘go with the flow’ of pre-set options

Salience Our attention is drawn to what is novel and seems relevant to

us

Priming Our acts are often influenced by sub-conscious cues

Affect Our emotional associations can powerfully shape our actions

Commitment

s

We seek to be consistent with our public promises, and

reciprocate acts

Ego We act in ways that make us feel better about ourselves

4. Use new, proven tools for behaviour change MINDSPACE, UK Government 2010

MINDSPACE: Designing effective behaviour change programmes

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Many Asian cultures have distinct conceptions of individuality that insist on the fundamental relatedness of individuals to each other. The emphasis is on attending to others, fitting in, and harmonious interdependence with them.

American culture neither assumes nor values overt connectedness among individuals. Individuals seek to maintain their independence from others by attending to the self and by discovering and expressing their unique inner attributes.

Source Markus,HR, Kitayama S (1991). Culture and the self: Implications for cognition, emotion, and motivation.

Psychological Review, Vol 98(2), Apr 1991, 224-253

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5. Don’t forget the cultural aspect!

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6. And all of it needs to be based on data: the world’s largest well-being database: >1.4 PB

Our approach 1. Securely collect real-world data on

a. Health-related behaviour, and b. Behaviour change interventions

2. Analyse data to a. Identify risks, and b. Find the most effective approaches

3. Incorporate these insights to drive continuous programme improvement

4. Scale-up programmes to drive population well-being improvement

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Combining science and engineering for impact

From cutting-edge science…

through solutions engineered for impact…

to individual well-being improvement.

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Examples Case examples

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Case Study: Healthways

Well-Being Improvement

Well-Being Segment Upward Shift

Performance Improvements

Elements of Well-Being Improved

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France: Multiyear contract with CNAMTS Largest disease management programme in Europe

• CNAMTS is the biggest health insurer in France (86% of the population ~ 50 m members)

• In 2011, Healthways signed Disease Management contract “Sophia”, focus on Diabetes initially

• 450,000 enrolled patients so far • By 2015 program will cover 500,000

persons

• Expansion to other chronic diseases, e.g. Asthma and Chronic Heart Failure

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Germany: 12 month outcomes Significant reduction in admissions for chronic conditions

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

Overall Low Severity

Med Severity

High Severity

Pe

rce

nt C

ha

ng

e in

Ad

mis

sio

n R

ate

Comparison

Intervention

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Telephonic Follow-Up to Reduce Hospital Readmissions

• The study tested whether telephonic outreach from a nurse to ensuring understanding of and adherence to discharge orders reduced 30-day readmissions

• Patients who received a call from a Healthways nurse within 14 days after discharge from the hospital were 23.1% less likely than the comparison group to have a 30-day readmission

• Timely telephonic follow up after hospital discharge provides an effective way to improve quality measures and reduce the burden of readmissions

23.1% reduction in hospital readmission through timely intervention

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Australia: 12, 18 month outcomes

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Fortune 50 and Fortune 100 Case Studies

Performance

Unplanned Absence

Unintended Turnover

Value Beyond Reduced Medical Spend

Fortune 50 Case Study Fortune 100 Case Study

Longitudinal Well-Being Improvement

Net Positive Shift in Well-Being =

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Science and Outcomes • Foundation for the ongoing development and

continuous improvement of all our solutions • Focused on 3 core areas

1. Health outcomes 2. Translation 3. Advanced analytics

Assets • 23-member team, including 11 doctoral degrees • World’s largest health and well-being database 1.4

petabytes • Published >130 studies/articles, including >50

external publications • Summary of peer-reviewed literature available online

at www.healthways.com/success/library.aspx

Our enduring focus on evidence based practice

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© 2014 Healthways, Inc. All rights reserved.

Conclusion

1. Well-Being is a comprehensive reflection of the health status of a

nation, an organisation and an individual.

2. Well-Being goes beyond the physical dimension of health includes

dimensions like social, purpose, financial and community.

3. The impact of Well-Being on medical and productivity related cost is

proven, measurable and can be influenced.

4. Well-Being improvement helps to reduce existing cost and avoid future

cost.

5. There are proven interventions to improve Well-Being.

6. The selection of the right partner can help you to get there faster and

more successfully.

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