CEO Letter to Clients
Time for a Shift in Thinking
Moving from an acute-care approach to a focus on preventing chronic disease makes medical and financial sense. So what prevents companies from doing it?
Imagine if it were possible to prevent considerable human suffering among your employees while saving your company thousands, even millions, of dollars each year.
The possibility exists, but it requires rethinking what we mean by “health care.” It means shifting our efforts toward chronic disease prevention rather than focusing on acute care.
Consider this: preventable illness makes up about 70 percent of the actual burden of illness and the associated costs. This makes sense, when you consider the Centers for Disease Control estimates one in five annual deaths is attributable to smoking alone. And the National Center for Health Statistics estimates 32 percent of American adults age 20 and over—60 million people—are obese. In 2000, the CDC forecasted the total cost of obesity to be $117 billion.
You may have heard the statistic that 15 percent of employees generate 85 percent of health care costs. But it’s not visits to the emergency room that run up health care costs. It’s what happens at the dinner table.
Untreated hypertension can lead to a stroke. Poorly managed diabetes can lead to amputation of a foot. And it all starts at the dinner table. Overeating and poor food choices can lead to obesity and other risk factors for chronic conditions such as hypertension and diabetes.
The solution?
Build a corporate culture of health that targets workers with poor health habits and makes them partners in changing those habits now, helping them avoid chronic disease in the future. Help employees with chronic health issues manage them effectively, and reduce or avoid acute-care episodes. And deliver programs along the entire continuum of health that improve employees’ lives inside and outside the workplace.
To take this integrated approach to managing health care risks, it requires a fundamental shift in thinking: from sickness care to health management, and a positive investment in employee health and productivity.
We see a growing number of Fortune 500 companies beginning to recognize that building a culture of health makes bottom-line sense. And when employers take this approach, our experience shows they are poised to reap the rewards of a healthy, empowered workforce with higher productivity and profits.
Yours in good health,

Gregg Lehman
Inside HealthFitness
New Executive Staff Helps Enhance Employee Health, Improve Bottom Line for Clients
To enhance our integrated employee health and productivity management solutions, HealthFitness has added Jim Reynolds, M.D., as chief medical officer, and John Griffin as chief operations officer.
As chief medical officer, Reynolds has oversight of all clinical aspects of programs and services, including establishment of best practice standards and use of evidence-based guidelines. He also oversees the newly formed Research, Development and Outcomes division. Reynolds comes to HealthFitness with an accomplished track record in employer-focused health management strategy development, program design and implementation. He is a physician with board certification in internal medicine.
Griffin oversees operations, information technology and account services functions at HealthFitness. In this role, he will spearhead initiatives to enhance our e-Health platform, improving the user experience and expanding our depth of reporting. Griffin brings more than 20 years’ experience in executive leadership of health management and health information technology organizations.
HealthFitness also announced that Jerry Noyce retired from his role as vice chairman on Jan. 31. He will continue to work on the President’s Council on Physical Fitness and Sports, and in other advisory council roles that focus on health and fitness management. He will also continue to serve as director on the HealthFitness Board.
Noyce joined the company in 2000 as president and chief executive officer, leading the company through expansion of its health management services and the acquisition of HealthCalc Network Inc. and the health and fitness division of Johnson & Johnson Health Care Systems Inc.
To learn more about HealthFitness’ new executive staff, visit http://www.hfit.com/pressreleases.cfm
HealthFitness Welcomes More Than 25 Clients in 2007
HealthFitness added more than 25 new clients in 2007, growing our workplace population health programs with a vision for a healthier, more productive workforce. The lion’s share of new contracts in 2007 was in our health management division. New clients included health plans and universities in addition to employers in the manufacturing, high tech and health provider sectors.
Read more about our strong 2007 growth and the growing number of companies adopting a culture of health at http://www.hfit.com/pressreleases.cfm
Research Director Discusses Best Practices in Maximizing ROI in Health Promotion
HealthFitness Director of Research Yosuke Chikamoto, Ph.D., will speak at the Art & Science of Health Promotion Conference, March 5-8, in San Diego, Calif.
His presentation, “Defining Participation in the Era of Tailored Approaches and its Implications to Outcome Evaluation in Worksite Health,” will examine the current practice of reporting participation in corporate health management and its potential impact on outcomes evaluation. He will also discuss ideas for a standard practice of reporting program participation, especially as it relates to tailored interventions.
Find out where HealthFitness’ subject matter experts will present next at: http://www.hfit.com/events.asp.
We’ve Moved!
HealthFitness is expanding and we’ve moved into a new, larger location to accommodate our growth. We doubled the size of our headquarters from 14,000 to 28,000 square feet to better meet growing client demands for health coaching, health advising and our other integrated health improvement solutions. Our new address is: 1650 West 82nd Street, Suite 1100, Minneapolis, MN 55431.
Industry Insights
Large Employers Share Best Strategies to Contain Costs, Improve Employee Health and Productivity
Senior management of large employers gathered at the third annual “Employer Health & Human Capital Congress” in Washington, D.C., Jan. 30-Feb. 1, to discuss ways to best maximize bottom-line corporate performance, improve overall employee health and productivity, and achieve cost containment targets. World Congress, a provider of health care conferences, hosted the event, which drew more than 400 attendees.
Highlights of topics addressed include:
• Rising need for managing diabetes among employee populations. The Centers for Disease Control and Prevention recently released data that reports the cost of diabetes in the U.S. is now $174 billion. Approximately 1 million people are diagnosed with diabetes annually, and currently 7.4 percent of adults have the disease. Studies suggest 80 percent of diabetes costs are due to complications.
• Growing interest in value-based design. Historically, employers have created designs that treat all conditions and treatments equally. However, many employers have reached their cost-sharing threshold, which is causing affordability and compliance issues for high and low value services. According to Hewitt Associates, a human resources consulting firm, only 55 percent of employees receive the care they need, as indicated by medical evidence. And 79,000 Americans die each year because they don’t receive evidence-based care for chronic conditions.
A value-based design model targets patients and enhances benefits for specific clinically defined categories based on patient-specific characteristics.With a value-based benefit design, diabetics, for example, could be allotted to receive free foot and eye exams to prevent possible complications from the disease.
• A big picture perspective of human capital beyond health solutions. Wendy Lynch, Ph.D., director of Health as Human Capital Foundation, discussed the need for companies to realign policy and strategy to optimize human capital performance. According to Lynch, health care costs are not a separate problem; they are a symptom of a larger phenomenon.
She cited poor communication, low motivation, low morale in co-workers and not enough training as key interferences with productivity. If health care alone was the single most important factor affecting productivity, she said, how could Sweden—which ranks higher than the U.S. in the World Health Organization’s ranking of world health systems—have an illness absence rate that is seven times higher than the U.S.?
To gain optimal human capital performance, Lynch said it requires four types of incentives:
• shared rewards (example: cash back for unused sick leave/paid time off);
• shared responsibilities (example: less than 100 percent pay during short-term disability);
• asset growth (example: prevention covered at 100 percent); and
• ownership of decisions (example: access to support for health decisions).
Best-in-Class Practices and Awards
Obtain the Recognition Your Company Deserves for Driving Business Results
Celebrate your company’s successes with your health and fitness management solution by applying for an Optimas Award, sponsored by Workforce Management magazine. Award categories include innovation, financial impact and competitive advantage. Each winning company and program will be profiled in an upcoming issue of the magazine.
HealthFitness can partner with you to craft your award application. Contact your program manager to learn more.
Deadline for submissions is April 18, 2008. Visit http://www.workforce.com/global/optimas.php for additional information.
Upcoming Events
Where We’ll See You Next
HealthFitness representatives will attend the National Business Group on Health’s “Business Health Agenda” conference, March 12-14, and the Institute of Health and Productivity Management’s “Health Management Conference,” March 31-April 2. We look forward to meeting you at these upcoming events.
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