Leading on Change, Leading on Health John August, Executive Director
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1 Leading on Change, Leading on Health John August, Executive Director Union Delegate Conference, March 23, 2012 0
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Leading on Change, Leading on Health John August, Executive Director Union Delegate Conference, March 23, 2012. 0. 0. The Legacy We Want to Achieve. Union Coalition legacy statement. 1. What Consumers Value in a Health Plan. Relative importance of features/benefits. - PowerPoint PPT Presentation
Transcript of Leading on Change, Leading on Health John August, Executive Director
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Leading on Change, Leading on Health
John August, Executive Director
Union Delegate Conference, March 23, 2012
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The Legacy We Want to Achieve
Union Coalition legacy statement
What Consumers Value in a Health Plan
Base: All Qualified Respondents Under Age 65 (n=2140)
“Assume for a moment you were faced with the decision of purchasing your own health insurance plan foryou and/or your family. On the next few screens, we will be showing you possible features and benefitsof health insurance plans. Given that you will have to make some tradeoffs in deciding which plan topurchase, for each one, please indicate which feature/benefit you would prefer the most and which you
would prefer the least.”
SOURCE: Strategic Health Perspectives 2010 Consumers Survey
Low monthly premiumsUnrestricted access to medical technologies
Coverage for dependentsKeeping my current doctor
Low co-pay costs for generic drugsReasonable co-pays for brand name drugs
Direct access to all specialistsDirect access to leading specialists in my area
Unrestricted access to cutting edge medical devicesUnrestricted access to cutting edge drugs
Access to all brand-name drugs at low cost sharingChoice of hospitals
Coverage for a wide selection of brand name durgsAccess to prestigious institutions (e.g., Mayo)
Relative importance of features/benefits
Health Plan Industry Trends
Health care reform has increased the number of entities seeking to reposition with newrelationships both within and outside their traditional domain.
Realignment and Integration - Realigning business model to control costs
HealthCare Partners acquires Talbert Medical Group
Humana purchased Concentra(a multi-state outpatient care provider)
Diversification - Expand into new lines of business
United rebranded health care servicesand technology as Optum
Aetna acquired Medicity(a health technology company)
Consolidation - Maintain access to capital and leverage economies of scales
United acquired Principal’s health plan business
HealthSpring acquired Bravo Health(a Medicare Advantage health plan)
Confidential - For Internal Use Only
Current Hospital Economics (per Camden Group)
Commercial Cost Shift Ends?
Consultants and Investment Banks Touting Valueof KP Style Integration
Where We Are Today
We spend twice as much on health care as other countries.
Not what Garfield imagined:
Where We Stand
1 France 2 Italy 3 San Marino 4 Andorra 5 Malta 6 Singapore 7 Spain 8 Oman 9 Austria 10 Japan 11 Norway 12 Portugal
13 Monaco
14 Greece
15 Iceland 16 Luxembourg 17 Netherlands 18 United Kingdom 19 Ireland 20 Switzerland 21 Belgium
22 Colombia
23 Sweden
24 Cyprus
25 Germany
26 Saudi Arabia
Health Care System PerformanceWorld Health Organization, 2000
27 United Arab Emirates
28 Israel
29 Morocco
30 Canada31 Finland 32 Australia 33 Chile 34 Denmark 35 Dominica 36 Costa Rica 37 United States of America38 Slovenia39 Cuba40 Brunei
The New Normal
Jobs are not coming back
Federal Debt 1946-2011
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It boils down to two words –
Frontline leadership
Our Challenge
Leading on change, leading on health
For our patients and members, our communities, our union movement, our families, ourselves….
Frontline Leadership
Frontline Leadership
To create a public face for our unions to show our commitment to leading on public health and shared prosperity.
Our Goal
Total Health: Advice from the first physician
“Eating alone will not keep man well; he must also take exercise, for food and exercise work together to produce health.”
– Hippocrates, 460 BC – 370 BC
What It Will Take to Win
A culture of engagement, learning, accountability and change….
Our Stark Choice
The choice is stark: chop or improve.
“If we permit chopping, I assure you that the chopping block will get very full – first with cuts to the most voiceless and poorest of us, but, soon after, to more and more of us. Fewer health insurance benefits, declining access, more out-of-pocket burdens, and growing delays.
If we don’t improve, the cynics win.”
- Don Berwick, past administrator, Centers for Medicare and Medicaid Services
Chop or Improve?
We know from documented experience that the best way to create value is through an engaged workforce and continuous improvement.
Taking the waste, cost, errors, and inefficiencies out of the system can only be done at the front line, by a respected and secure workforce.
Our Response
1. Improve quality, service, safety and efficiency while preserving best place to work
2. Grow KP to protect our model of care, our unions and our jobs
3. Improve the health of our workforce
4. Improve the health of our communities
