St. Joseph Hoag Health

Transcription

1 Building Together a Healthier Makes All Community The Difference Through Partnering to bring personalized health and wellness to the workplace Wellness and Employer Partnerships St. Joseph Hoag Health We are the trusted partner transforming care to create healthiest communities. $3.7B in revenue 1.1M patient encounters 221K managed lives 9 hospitals More than 475 primary care physicians and 1,250 specialists 1

2 CURRENT FUTURE SJHH Payor Consumer Consumer Employer Broker Partnering with Employers and Building a Healthier Community Through the SJHH Wellness Strategy 2

3 The Hypothesis Convenient, Integrated & Personalized Wellness Medical Fitness Healthier Workforce Improved Cost of Care To become our community s partner in achieving optimal health by providing integrated medical, wellness and fitness services where people live, work and play. Wellness Corners (Retail Wellness Centers) Direct to Employer Wellness Centers 3

4 WELLNESS CORNER Retail wellness centers serving small to mid size employers in multi tenant office communities Medical care for minor illnesses, minor injuries, chronic conditions Lifestyle coaching exercise, nutrition, sleep & stress Lifestyle labs cardiometabolic, micronutrient & genetic Direct to employer services: lunch & learns, skin care events, biometrics and flu shots Park Place (Irvine) The Village (Irvine) Park Plaza (Irvine) Newport Center (Newport) Anaheim Promenade Chris WELLNESS CORNER OUTCOMES 4,000 unique customers 1,000 new members to the network Improved Productivity Reduced Absenteeism 97% satisfaction rating Health Improvement 5% increase in percentage of employees rated low risk 4% decrease in employees rated moderate risk 1% decrease in employees rated high risk 11 employer partnerships where services are brought onsite 4

5 DIRECT TO EMPLOYER WELLNESS CENTERS Wellness centers serving a single employer Designed to meet an employers workforce health needs, as well as further their wellness and medical benefit goals. Operate as an onsite accountable care model Four employer partnerships in Orange County Opened July 2015 Business Overview February Western Digital Corporation or its affiliates. All rights reserved. Confidential. 5

6 Western Digital A Storage Solutions Leader In a strong strategic position to lead global evolution of broad-based and changing storage industry Broad storage portfolio, including HDDs, SSDs, embedded and removable flash memory, and storage-related systems 17,000+ active patents worldwide Vertically integrated business model to maximize operational efficiency Consistent profitable performance, strong free cash flow 2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. 11 Where Western Digital is in the World Our 9 largest sites Headcount: Sites WD, HGST, SD China 10,718 India 976 Israel 648 Japan 2,008 Malaysia 14,332 Philippines 8,515 Singapore 707 Thailand 25,590 US 8,204 All Other 795 Total Headcount 72,493 + Presence in 31 additional countries EMEA Austria Belgium Czech Republic Denmark Egypt France Germany Ireland Italy Netherlands Poland Russia Saudi Arabia South Africa Spain Sweden Switzerland Turkey UAE UK Ukraine APAC Australia Hong Kong Indonesia South Korea Taiwan Vietnam Americas Argentina Brazil Canada 2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. 6

7 The Power of We Western Digital Corporation or its affiliates. All rights reserved. Confidential. 13 Innovation Fuels Our Growth 1956 IBM Invented First Hard Drive (RAMAC) 2016 SanDisk BiCS3 256Gb X3 64-layer 1976 WD First Disk Array Sub-System Patent 1988 SunDisk First System Flash 2015 SanDisk BiCS2 256Gb X3 48-layer 2015 HGST Active Archive System 4.7PB Object Storage System 1991 IBM MR Heads 2000 SanDisk First MLC NAND 2008 SanDisk 16Gb TLC 2010 HGST SAS SSD 2013 HGST First Helium HDD (6TB) 2015 SanDisk InfiniFlash All-flash Array 2014 WD First WD Purple HDDs for Video Surveillance 2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. 14 7

8 Broadest Portfolio of Products & Solutions Client Solutions Client Devices Data Center Devices & Solutions 2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. 15 Delivering the Possibilities of Data Home City Medical Industrial Autonomous Vehicles Machine Learning Mobile 2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. 16 8

9 Industry s Largest Storage Solutions Company LTM Revenue 1 $17.7B $15.9B $11.7B $11.1B $11.0B $5.4B $5.2B $3.4B $2.4B Pro-forma Including SanDisk Information Storage NAND 2 Storage and Memory 2 Non-Volatile Memory 3 NAND 2 Non-Volatile Memory Source: Company website; Public filings; analyst reports; S&P Capital IQ 1 Last 4 quarters ending Sep 30, 2016 for WDC, Seagate, Toshiba, Samsung, Micron and SK Hynix; ending Oct 1, 2016 for Intel; ending Oct 28, 2016 for NetApp; and ending Jun 30, 2016 for EMC 2 For the LTM, Toshiba revenue converted to USD at an average exchange rate of JPY/USD; Samsung and SK Hynix revenue converted to USD at an average exchange rate of KRW/USD 3 Includes Non-Volatile Memory (Trade and Non-Trade) and Other 2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. 17 DRIVE WELLNESS STRATEGY 9

10 Cost Management $61M PEPY per employee per year Key Drivers of Claims Cost Increase in large claims 2013/14: 10 large claimants/1, /16: 14 large claimants/1,000 Shift of enrollment to Northern California 2010/11 57% (WD) 2012/13-66% (HGST) 2016/17 75% (SanDisk) Northern California providers are on average 15-20% higher than Southern California Increase in specialty rx ingredient cost per script 2013/14: $1, /16: $2,590 (+44%) Periodic reduction in force activities impacts overall utilization of plan and PEPY 19 EE Annual Contribution PEPY per employee per year Employee Annual Contribution below $2,250 between Drive Renewal Assumes the following annual change for employees enrolled: Anthem BC: +5.9% Kaiser: +10% Drive Renewal Assumes the following annual change for employees enrolled: Anthem BC: +0% Kaiser: +10% 20 10

11 H.S.A Seed + Rewards Significant change for employees Change in how WDC spends budget Impact on clinic and facilities PEPY per employee per year $39.5M Total WDC funding of H.S.A funds and incentives since 2011 FYI: Feb 17 Total $30.8 M $5.9 M 15% Incentives H.S.A Funding $33.6 M 85% Drive services to on-site clinics Increase engagement by proactive activities Manage EE/SP costs 21 H.S.A EE Balances 2016/17 average WDC H.S.A Seed amount = $1, H.S.A IRS contribution limit: $3,350 / $6, : $3,400 / $6,750 On average, H.S.A Contribution split: WDC: 40% ($1,080) --- Employee: 60% ($1,620) PEPY per employee per year $4, /17 YTD average H.S.A balance (data reflects addition of SanDisk) FYI: Highest balance: $57k 26% Of employees have an account balance in excess of $5,500 as of Feb % Of employees can meet their deductibles based on current balances 22 11

12 Problem Space Driving to target engagement from Tier 1 and Tier 2 members Data below is based on Anthem BC claims only Health Consumer Profiles impacting costs 97% of total costs are incurred by 30% of the WDC population Tier 1 and 2 large claimants and associated chronic conditions have a large impact on costs. Recommendation to modify current engagement program. Tier 1 Managing Crisis Make it Happen Tier 2 Managing Care Tier 3 Managing Health 1% Members = 148 (Spouses: 56 or 40%) Plan Paid (Avg) $160,551 PMPY Total DRIVE Plan Paid $23.8M 44% 29% Members = 4,279 Plan Paid (Avg) $6,820 PMPY Total Plan Paid $29.2M 53% 70% Members = 10,331 Plan Paid (Avg) $166 PMPY Total Plan Paid $1.7M 3% 60% 50% 40% 30% 20% 10% 0% 50% 45% 40% 37% 33% 30% 30% 20% 20% Closed Gaps in Care Prenatal Program Condition Mgmt 2014/ /16 Target 2% 9% 20% Case Mgmt 23 Problem Space Improved risk and cost management requires higher engagement from spouses Spouses on average cost 32% higher than employees and account for 36% of high cost claimants Targeting spousal engagement to increase to similar or higher levels as employee. $7,000 Think Big PMPY $6,000 $6,725 $6,227 $6,258 $5,000 $5,357 $5,535 $4,000 Make it $4,875 DRIVE $4,899 Happen $4,188 $3,000 $2,000 $1,000 Employee Spouse 2015/ /17 Anthem Enrollment (Feb 17) = 15,735 members (38% EE 24% SP 38% CH) Kaiser Enrollment (Feb 17) = 3,428 members (41% EE 23% SP 36% CH) 70% 60% 50% 40% 30% 20% 10% 0% 52% Biometrics Screenings 41% 22% 21% Health Assessments Employee Spouse 62% 36% Mobile Health 24 12

13 Solution Considerations Millions $ $ % 50% + 3.0% Target Engagement % $ % $85.00 Savings $2.60 M Savings $5.21 M $ /17 Drive /18 Drive /18 Drive /18 Drive Achieving Western Digital s Goals with DRIVE Wellness Center 13

14 Physical Therapy Exam 4,600 sq. ft. Primary Care Acupuncture Behavioral Health Mindfulness Yoga Chiropractic Care Physical Therapy Health Coaching Onsite Medication Dispensing Added in September: Care Management Disease Management ENGAGEMENT & VISITS 50% of employees engaged in year 1 and 65% in year 2. Visit Volumes FY16 Annualized Visits FY17 YTD Actual Visits Through January Engagement 50% 65% Primary Care 1, Physical Therapy Chiropractor Acupuncture Behavioral Health Body Composition Health Coaching Nurse Total 4,376 2,414 14

15 PAY FOR PERFORMANCE INCENTIVES Patient Satisfaction 98.00% 70% 79.99% 80% 89.99% 90% 100% Threshold Target Exceptional Year 1 Incentive Goal Weightings 30% 450 employees Employee Engagement 46% 35% 525 employees 40% 600 employees Threshold Target Exceptional (Total year to date unique visits at DRIVE (general utilization) measured as a percentage of WD's 1,500 employees) Implementation Success 30 days 31 days days 28 days Employee Engagement 20% Implementation Success Patient Satisfaction 40% 20% Same Day Appointments 20% Same Day Appointments 85% 89.99% 90% 93.99% 94% 100% 100% Threshold Target Exceptional Threshold Target Exceptional Chris WD S COST SAVINGS $634K savings in year 1. Operating Performance (Surplus) Year 1 Annualized Actuals (Based on June actuals) Revenue (Employee Contributions) ($64,511) Staffing $584,190 Non Staffing Operating Expenses $76,211 Management Fee and Performance Incentives $406,400 Total Expenses $1,066,802 Net Expense (Surplus) $1,002,291 Estimated Productivity Savings* ($749,850) Market Costs Avoided ($725,139) Pharmacy Savings ($24,380) Savings from Avoided ED/Urgent Care Visits** ($136,620) Net ROI (Surplus) ($633,698) *3 hours for visits and 1 hour for prescriptions. **2013 blended average emergency department and urgent care costs of $688 plus a 5% increase for 2014 and another 5% increase for

16 QUESTIONS & DISCUSSION 16