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CFO Playbook on
Health Care Cost Management
CFO Playbook
 on Health Care Cost Management

Guests:

• Wayne H. Miller, founder and CEO of Nura Life
Sciences
• Dr. Leonard A. Wisneski, MD, FACP, clinical professor
of medicine at George Washington University Medical
Center, adjunct faculty in the division of integrative
physiology at Georgetown University




                         2
CFO Playbook
 on Health Care Cost Management


• Self-funded corporate health care plans lack efficacy
data.
• As a result, the 50-year-old health care payment
system has become dysfunctional.
• What is needed is an EVA approach to health care
cost management which focuses on value.




                         3
CFO Playbook
 on Health Care Cost Management


• Why is efficacy data missing?
• The health care system was never built to collect the
data.
• U.S. HHS official: “We don’t have a way to pay for
things that work.”




                         4
CFO Playbook
 on Health Care Cost Management

Anecdote from an official at a Fortune 100 company
that spends $100 million per month on health care:
    “We don’t have any data.”
    No quantitative basis of how we will allocate the
   $1.2 billion health care budget.
    This is how the self-insurer health care
   ecosystem works.




                         5
CFO Playbook
 on Health Care Cost Management


• The backbone of the health care payment system is
coding.
• Coding is based on how much training a
doctor/practitioner has gone through, plus how much
time a treatment takes.
• But no data is collected related to telling companies
whether what they are paying for what works.




                         6
CFO Playbook
 on Health Care Cost Management


• The embedded dysfunction of the health care
payment system influences the behavior of
constituents.
• As a result, it is nearly impossible to create incentives
to help create a more efficient system.
• In addition, the current payment system does not
capture the activities of more than one million
practitioners that work in the integrated medicine field.




                           7
CFO Playbook
on Health Care Cost Management

• Until you access the data where it lives in
the process, you will be unable to build
efficiency into the system.
• Currently, the system pays for the time of
the activity, not the value.
• As a result, incentives are misaligned.




                       8
CFO Playbook
on Health Care Cost Management


• If real-time, health-treatment data is
captured, that information would help
corporations drill down into which treatments
work and which ones don’t.
• Integrated medicine is a multidisciplinary
approach to health care, similar to the way a
money manager uses a portfolio approach to
diversify risk.




                       9
CFO Playbook
on Health Care Cost Management


• How does having this data reduce corporate
health care costs?
• Using an integrated approach that includes
conventional and alternative medical
treatments drives value into your capital
spending.




                      10
CFO Playbook
on Health Care Cost Management


Capturing the data is something only the private
sector can do.
    Private sector capital is at risk.
    Corporations know how to use data to
    drive efficiencies.
    This is similar to a supply chain exercise,
    which corporations regularly control.




                       11
CFO Playbook
on Health Care Cost Management
 • Some self-funded plan data can be found:
     Existing third-party administrators;
     Mining claims data.
 • However, there are system snags:
     Treatment innovation that is more
      expensive is more acceptable;
     Treatment innovation that is less
      expensive cannot be measured or value
      quantified.


                     12
CFO Playbook
on Health Care Cost Management


• Budgeting & forecasting health care costs have
traditionally relied on increasing last year’s
spending.
• Yet the forecasting goal should be to reduce
last year’s expenditures related to chronic
conditions by 20% (chronic conditions account
for 75% of all corporate expenditures).
• Compensation incentives should drive this
cost-reduction effort.


                      13
CFO Playbook
on Health Care Cost Management


Dr. Leonard Wisneski
A presentation within today’s presentation that
will:
    Define integrated medicine for corporate
     executives;
    Highlight research results from the
    Bravewell Collaborative;
    Identify chronic pain as being paramount
     to lost employee time.

                       14
Integrative Medicine:
The Future of Healthcare Delivery
   Leonard A. Wisneski, MD, FACP
A ROSE BY ANY OTHER
          NAME
• Integrative Medicine- Universities, Public
• Complementary and Alternative Medicine
  (CAM) - Government
National Center for Complementary &
   Alternative Medicine (NCCAM)
1. Formed in 1998 by Public Law 105-277
2. Authorization
  a) Conduct scientific research on CAM
  b) Train researchers
  c) Disseminate authoritative information about
     CAM to the public and health professionals
  d) 15 R 25 grants were awarded between 2000-2003
     in order to support the incorporation of CAM
     information into allopathic health professions
     schools curricula at the undergraduate, graduate,
     and continuing education levels
Definition of CAM
              NCCAM

 Health promotion, illness prevention,
and healing practices that are outside
what is considered to be conventional
medicine.
NCCAM



“Integrative Medicine should integrate the
  most effective treatments for patients by
  combining both conventional and
  alternative approaches to address all
  aspects of health and wellness – biological,
  psychological, social, and spiritual.”
Consortium of Academic Health Centers
for Integrative Medicine (51 med schools)

“The practice of medicine that reaffirms the
 importance of the relationship between
 practitioner and patient, focuses on the whole
 person, is informed by evidence, and makes
 use of all appropriate therapeutic approaches,
 healthcare professionals, and disciplines to
 achieve optimal health and healing.”
NIH/NCCAM
  CLASSIFICATION OF CAM

1. Whole Medical         2. Mind-Body
   Systems                  Medicine
  •   Traditional          •   Biofeedback
      Chinese Medicine     •   Hypnosis
  •   Ayurveda             •   Meditation
  •   Homeopathic          •   Prayer
      Medicine             •   Others
  •   Others
NIH/NCCAM
      CLASSIFICATION OF CAM
3. Biologic-Based       5. Energy Therapies
   Therapies              •   Therapeutic Touch
  •   Dietary Therapy     •   Qi Gong
  •   Herbal Medicine     •   Bioelectric Field
  •   Neutraceuticals         Manipulation
4. Manipulative/Body      •   Reiki
   Based Methods          •   Diagnostic Devices
  •   Osteopathic         •   Therapeutic Devices
      Manipulation
  •   Chiropractic
      Medicine
  •   Massage Therapy
Integrative Medicine:
             Proposed Classification
1.   Conventional Diagnostics and Therapeutics
2.   Traditional Medical Systems
3.   Bioenergetic Medicine
4.   Nutritional Based Therapeutics
5.   Manipulative/Body-Based Therapies
THE EMERGING
PHILOSOPHY OF MEDICINE

•   Remember the Healing Power of Nature
•   View the Whole Person
•   Identify and Treat the Cause
•   The Physician Is a Teacher
•   Prevention Is the Best Cure
“Students must have sufficient knowledge of the
commonly employed alternative remedies to
counsel patients about those that are harmful,
those that might interact adversely with
prescribed medications, those that are harmless
and can be used with impunity, and those that
have been shown to be beneficial.”

                        Jordan J. Cohen, President of AAMC
                        Academic Medicine, June 2000
RECENT HISTORICAL MILESTONES
President Clinton establishes the White House
Commission on Complementary and Alternative
Medicine Policy (2000).
Founding of the Consortium of Academic Health
Centers for Integrative Medicine (2000).

Formation of the Integrated Healthcare Policy
   Consortium (2001)
Institute of Medicine CAM Conference (2003)
Institute of Medicine CAM Conference (2009)
Integrative Medicine in America Report (2012)
SPECIALTY CENTERS FOR CAM
      RESEARCH AND PRACTICE
Several academic centers including:

 • University of                      • University of
   Colorado                             Pennsylvania
 • Harvard University
                                      • Emory University
 • Johns Hopkins
   University                         • Georgetown
 • University of                        University
   Maryland                           • Oregon Health
 • UCLA                                 Sciences University
 • University of Arizona              • Scripps
                                      • Others
SITE SELECTION AND METHODS

• 60+ sites identified from Bravewell Clinical Network,
  Consortium of Academic Health Centers for
  Integrative Medicine and suggested by IM leaders
• 29 chosen to represent the field
  •   Directed by MD, other doctoral level provider or nurse
  •   In operation at least three years
  •   Significant patient volume
  •   Prior clinical contributions to the field
  •   Sites only delivering non-conventional care not included
• Directors responded to REDCap-based questionnaire
• Site visits made by study team for qualitative data
WHO WE ARE

• AFFILIATIONS
 •   27 centers affiliated with a specific hospital
 •   26 centers affiliated with a healthcare system
 •   25 centers affiliated with a medical school
 •   1 center affiliated with a nursing college
• CARE MODELS
 •   26 offer consultative care
 •   18 offer comprehensive care
 •   13 offer primary care
 •   15 offer inpatient services at affiliated hospital
• RESEARCH AND EDUCATION
 • 25 centers involved in research and 25 in provider education
THE NUMBERS GAME

• 29 Centers
 • Questioned about treatment of
• 20 Medical Conditions
 • Using
• 34 Interventions

• YIELDS A LOT OF NUMBERS!!!
CONCLUSIONS AND NEXT STEPS

• Integrative Medicine is an established part of
  healthcare in the US with increasing acceptance
  and demand
• Integrative Medicine is truly integrative
• Integrative Medicine is being practiced in diverse
  sites with high concordance for specific conditions
  suggesting practice is evidence-informed
• Prospective outcomes data and cost-effectiveness
  data should be collected
• Systems to further identify and share best practices
  among centers and practitioners should be
  developed
The Integrative Healthcare Policy
          Consortium
             (IHPC)
IHPC
• Broad coalition of healthcare organizations,
  clinicians, patients and educators
• IHPC advocates for public policy that ensures
  all Americans access to safe, high quality,
  integrative, whole person healthcare
• Integrative healthcare includes conventional,
  complementary and alternative disciplines in a
  collaborative effort to influence the future of
  healthcare delivery in the United States
IHPC Mission
To direct the national healthcare agenda towards
 a health-oriented, integrative system, ensuring
  all people access to the full range of safe and
  regulated conventional, complementary, and
 alternative healthcare professionals, therapies,
   and products, and to the building blocks of
health, including clean air, water, and a healthy
                   food supply.
IHPC Accomplishments
• National Policy Dialogue 2001
  (Georgetown University)
• National Educational Dialogue 2004
  (Georgetown University)
• National Stakeholders Conference 2010
  (Georgetown University)
• Responsible for several inclusions in ACA
• Congressional Briefings 2011-2012
Affordable Care Act
• Section 2706: Non-discrimination in healthcare
• Section 3502: Inclusion of CAM practitioners in the
  Medical Home
• Section 4001: National Prevention, Health Promotion,
  and Public Health Council
• Section 4206: Demonstration projects concerning
  individualized wellness plans
• Section 5001: National Healthcare Workforce
  Commission
• Section 6301: Patient-Centered Outcomes Research
• Section 2301: Coverage for freestanding birth center
  services
CFO Playbook
on Health Care Cost Management


Next steps:
• Collect data;
• Create a business model that funnels the right
health care data into your working capital;
• Reduce total cost of self-insured health care
plans.




                       44
CFO Playbook
on Health Care Cost Management
 Special invitations to CFOs
 • Create a list of 10 clinical conditions/areas on
 which your company spends the most amount
 of money.
 • Send the list to Wayne Miller who will produce
 a cost comparison between your current
 expense and the potential savings derived from
 a self-funded plan that includes conventional
 and integrated medicine.
      Email: healthcare@cfo.com
      Email subject line: Health Care Cost
       Comparison
                       45
CFO Playbook
on Health Care Cost Management
 Special invitations to CFOs
 • If you already understand the benefits of an
 EVA approach to health care plans, and would
 like to find out more about participating in a
 demonstration project to lower your plan costs
 contact Wayne Miller.
     Email: healthcare@cfo.com
     Email subject line: Interested in
      Demonstration Project




                      46
CFO Playbook
on Health Care Cost Management
Special invitations to CFOs and their colleagues:
• Join the discussion about using an EVA approach
to reduce self-funded health care costs
     Discussion Group on LinkedIn:
      http://linkd.in/QGhmy4
     All participants in today’s webcast are pre-
      approved to join the LinkedIn discussion
      group.
Stay tuned to our next CFO Playbook Webcast on
Thurs., Oct. 10, starting at 2 pm Eastern time –
The CFO Playbook on Risk Management: Best
Practices from the London Olympics

                       47

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Cfo Magazine Nura Life Sciences Webinar Presentation On Integrative Medicine For Self Insured Payors

  • 1. CFO Playbook on Health Care Cost Management
  • 2. CFO Playbook on Health Care Cost Management Guests: • Wayne H. Miller, founder and CEO of Nura Life Sciences • Dr. Leonard A. Wisneski, MD, FACP, clinical professor of medicine at George Washington University Medical Center, adjunct faculty in the division of integrative physiology at Georgetown University 2
  • 3. CFO Playbook on Health Care Cost Management • Self-funded corporate health care plans lack efficacy data. • As a result, the 50-year-old health care payment system has become dysfunctional. • What is needed is an EVA approach to health care cost management which focuses on value. 3
  • 4. CFO Playbook on Health Care Cost Management • Why is efficacy data missing? • The health care system was never built to collect the data. • U.S. HHS official: “We don’t have a way to pay for things that work.” 4
  • 5. CFO Playbook on Health Care Cost Management Anecdote from an official at a Fortune 100 company that spends $100 million per month on health care:  “We don’t have any data.”  No quantitative basis of how we will allocate the $1.2 billion health care budget.  This is how the self-insurer health care ecosystem works. 5
  • 6. CFO Playbook on Health Care Cost Management • The backbone of the health care payment system is coding. • Coding is based on how much training a doctor/practitioner has gone through, plus how much time a treatment takes. • But no data is collected related to telling companies whether what they are paying for what works. 6
  • 7. CFO Playbook on Health Care Cost Management • The embedded dysfunction of the health care payment system influences the behavior of constituents. • As a result, it is nearly impossible to create incentives to help create a more efficient system. • In addition, the current payment system does not capture the activities of more than one million practitioners that work in the integrated medicine field. 7
  • 8. CFO Playbook on Health Care Cost Management • Until you access the data where it lives in the process, you will be unable to build efficiency into the system. • Currently, the system pays for the time of the activity, not the value. • As a result, incentives are misaligned. 8
  • 9. CFO Playbook on Health Care Cost Management • If real-time, health-treatment data is captured, that information would help corporations drill down into which treatments work and which ones don’t. • Integrated medicine is a multidisciplinary approach to health care, similar to the way a money manager uses a portfolio approach to diversify risk. 9
  • 10. CFO Playbook on Health Care Cost Management • How does having this data reduce corporate health care costs? • Using an integrated approach that includes conventional and alternative medical treatments drives value into your capital spending. 10
  • 11. CFO Playbook on Health Care Cost Management Capturing the data is something only the private sector can do.  Private sector capital is at risk.  Corporations know how to use data to drive efficiencies.  This is similar to a supply chain exercise, which corporations regularly control. 11
  • 12. CFO Playbook on Health Care Cost Management • Some self-funded plan data can be found:  Existing third-party administrators;  Mining claims data. • However, there are system snags:  Treatment innovation that is more expensive is more acceptable;  Treatment innovation that is less expensive cannot be measured or value quantified. 12
  • 13. CFO Playbook on Health Care Cost Management • Budgeting & forecasting health care costs have traditionally relied on increasing last year’s spending. • Yet the forecasting goal should be to reduce last year’s expenditures related to chronic conditions by 20% (chronic conditions account for 75% of all corporate expenditures). • Compensation incentives should drive this cost-reduction effort. 13
  • 14. CFO Playbook on Health Care Cost Management Dr. Leonard Wisneski A presentation within today’s presentation that will:  Define integrated medicine for corporate executives;  Highlight research results from the Bravewell Collaborative;  Identify chronic pain as being paramount to lost employee time. 14
  • 15. Integrative Medicine: The Future of Healthcare Delivery Leonard A. Wisneski, MD, FACP
  • 16. A ROSE BY ANY OTHER NAME • Integrative Medicine- Universities, Public • Complementary and Alternative Medicine (CAM) - Government
  • 17. National Center for Complementary & Alternative Medicine (NCCAM) 1. Formed in 1998 by Public Law 105-277 2. Authorization a) Conduct scientific research on CAM b) Train researchers c) Disseminate authoritative information about CAM to the public and health professionals d) 15 R 25 grants were awarded between 2000-2003 in order to support the incorporation of CAM information into allopathic health professions schools curricula at the undergraduate, graduate, and continuing education levels
  • 18. Definition of CAM NCCAM Health promotion, illness prevention, and healing practices that are outside what is considered to be conventional medicine.
  • 19. NCCAM “Integrative Medicine should integrate the most effective treatments for patients by combining both conventional and alternative approaches to address all aspects of health and wellness – biological, psychological, social, and spiritual.”
  • 20. Consortium of Academic Health Centers for Integrative Medicine (51 med schools) “The practice of medicine that reaffirms the importance of the relationship between practitioner and patient, focuses on the whole person, is informed by evidence, and makes use of all appropriate therapeutic approaches, healthcare professionals, and disciplines to achieve optimal health and healing.”
  • 21. NIH/NCCAM CLASSIFICATION OF CAM 1. Whole Medical 2. Mind-Body Systems Medicine • Traditional • Biofeedback Chinese Medicine • Hypnosis • Ayurveda • Meditation • Homeopathic • Prayer Medicine • Others • Others
  • 22. NIH/NCCAM CLASSIFICATION OF CAM 3. Biologic-Based 5. Energy Therapies Therapies • Therapeutic Touch • Dietary Therapy • Qi Gong • Herbal Medicine • Bioelectric Field • Neutraceuticals Manipulation 4. Manipulative/Body • Reiki Based Methods • Diagnostic Devices • Osteopathic • Therapeutic Devices Manipulation • Chiropractic Medicine • Massage Therapy
  • 23. Integrative Medicine: Proposed Classification 1. Conventional Diagnostics and Therapeutics 2. Traditional Medical Systems 3. Bioenergetic Medicine 4. Nutritional Based Therapeutics 5. Manipulative/Body-Based Therapies
  • 24. THE EMERGING PHILOSOPHY OF MEDICINE • Remember the Healing Power of Nature • View the Whole Person • Identify and Treat the Cause • The Physician Is a Teacher • Prevention Is the Best Cure
  • 25. “Students must have sufficient knowledge of the commonly employed alternative remedies to counsel patients about those that are harmful, those that might interact adversely with prescribed medications, those that are harmless and can be used with impunity, and those that have been shown to be beneficial.” Jordan J. Cohen, President of AAMC Academic Medicine, June 2000
  • 26. RECENT HISTORICAL MILESTONES President Clinton establishes the White House Commission on Complementary and Alternative Medicine Policy (2000). Founding of the Consortium of Academic Health Centers for Integrative Medicine (2000). Formation of the Integrated Healthcare Policy Consortium (2001) Institute of Medicine CAM Conference (2003) Institute of Medicine CAM Conference (2009) Integrative Medicine in America Report (2012)
  • 27. SPECIALTY CENTERS FOR CAM RESEARCH AND PRACTICE Several academic centers including: • University of • University of Colorado Pennsylvania • Harvard University • Emory University • Johns Hopkins University • Georgetown • University of University Maryland • Oregon Health • UCLA Sciences University • University of Arizona • Scripps • Others
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  • 29. SITE SELECTION AND METHODS • 60+ sites identified from Bravewell Clinical Network, Consortium of Academic Health Centers for Integrative Medicine and suggested by IM leaders • 29 chosen to represent the field • Directed by MD, other doctoral level provider or nurse • In operation at least three years • Significant patient volume • Prior clinical contributions to the field • Sites only delivering non-conventional care not included • Directors responded to REDCap-based questionnaire • Site visits made by study team for qualitative data
  • 30. WHO WE ARE • AFFILIATIONS • 27 centers affiliated with a specific hospital • 26 centers affiliated with a healthcare system • 25 centers affiliated with a medical school • 1 center affiliated with a nursing college • CARE MODELS • 26 offer consultative care • 18 offer comprehensive care • 13 offer primary care • 15 offer inpatient services at affiliated hospital • RESEARCH AND EDUCATION • 25 centers involved in research and 25 in provider education
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  • 33. THE NUMBERS GAME • 29 Centers • Questioned about treatment of • 20 Medical Conditions • Using • 34 Interventions • YIELDS A LOT OF NUMBERS!!!
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  • 37. CONCLUSIONS AND NEXT STEPS • Integrative Medicine is an established part of healthcare in the US with increasing acceptance and demand • Integrative Medicine is truly integrative • Integrative Medicine is being practiced in diverse sites with high concordance for specific conditions suggesting practice is evidence-informed • Prospective outcomes data and cost-effectiveness data should be collected • Systems to further identify and share best practices among centers and practitioners should be developed
  • 38. The Integrative Healthcare Policy Consortium (IHPC)
  • 39. IHPC • Broad coalition of healthcare organizations, clinicians, patients and educators • IHPC advocates for public policy that ensures all Americans access to safe, high quality, integrative, whole person healthcare • Integrative healthcare includes conventional, complementary and alternative disciplines in a collaborative effort to influence the future of healthcare delivery in the United States
  • 40. IHPC Mission To direct the national healthcare agenda towards a health-oriented, integrative system, ensuring all people access to the full range of safe and regulated conventional, complementary, and alternative healthcare professionals, therapies, and products, and to the building blocks of health, including clean air, water, and a healthy food supply.
  • 41. IHPC Accomplishments • National Policy Dialogue 2001 (Georgetown University) • National Educational Dialogue 2004 (Georgetown University) • National Stakeholders Conference 2010 (Georgetown University) • Responsible for several inclusions in ACA • Congressional Briefings 2011-2012
  • 42. Affordable Care Act • Section 2706: Non-discrimination in healthcare • Section 3502: Inclusion of CAM practitioners in the Medical Home • Section 4001: National Prevention, Health Promotion, and Public Health Council • Section 4206: Demonstration projects concerning individualized wellness plans • Section 5001: National Healthcare Workforce Commission • Section 6301: Patient-Centered Outcomes Research • Section 2301: Coverage for freestanding birth center services
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  • 44. CFO Playbook on Health Care Cost Management Next steps: • Collect data; • Create a business model that funnels the right health care data into your working capital; • Reduce total cost of self-insured health care plans. 44
  • 45. CFO Playbook on Health Care Cost Management Special invitations to CFOs • Create a list of 10 clinical conditions/areas on which your company spends the most amount of money. • Send the list to Wayne Miller who will produce a cost comparison between your current expense and the potential savings derived from a self-funded plan that includes conventional and integrated medicine.  Email: healthcare@cfo.com  Email subject line: Health Care Cost Comparison 45
  • 46. CFO Playbook on Health Care Cost Management Special invitations to CFOs • If you already understand the benefits of an EVA approach to health care plans, and would like to find out more about participating in a demonstration project to lower your plan costs contact Wayne Miller.  Email: healthcare@cfo.com  Email subject line: Interested in Demonstration Project 46
  • 47. CFO Playbook on Health Care Cost Management Special invitations to CFOs and their colleagues: • Join the discussion about using an EVA approach to reduce self-funded health care costs  Discussion Group on LinkedIn: http://linkd.in/QGhmy4  All participants in today’s webcast are pre- approved to join the LinkedIn discussion group. Stay tuned to our next CFO Playbook Webcast on Thurs., Oct. 10, starting at 2 pm Eastern time – The CFO Playbook on Risk Management: Best Practices from the London Olympics 47