Integrated Health & Safety Management:

Transcription

1 Integrated Health & Safety Management: Integrating Health Protection and Health Promotion for Individual and Organizational Wellbeing E. Andrew Kapp, PhD, CSP, CHMM Research Manager, Workplace Health and Safety Underwriters Laboratories Inc.

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4 Definition of Integrated Health and Safety Integrated Health and Safety (IHS) is the strategic and systematic integration of distinct health and safety programs and policies into a continuum of organizational, personal, occupational, community and environmental activities that are replicable, measurable, and integrated across institutional silos, enhancing the overall health and well-being of workers and their families and preventing work-related injuries and illnesses

5 Why integrate?

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8 $685,000,000

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10 Claim Costs Frequency Claims Frequency and Severity WC Frequency and Severity Trends $20,000 8,000 $18,000 $16,000 $14,000 $12,000 7,000 6,000 5,000 $10,000 $8,000 $6,000 $4,000 $2,000 4,000 3,000 2,000 1,000 Indemnity Severity Medical Severity Frequency per 100K Workers $ Policy Year Medical severity rose more than twice as fast as the medical CPI from 1995 through 2007 (8.3% vs. 4%) 1 Recent Indemnity severity trends exceed wage inflation Medical claim costs have increased 9+% since Workplace Safety Index, Winter 2008, Liberty Mutual Research Institute for Safety 2 NCCI Holdings, Inc. Annual Issues Symposium 2008, State of the Line

11 U.S. Workforce is Aging

12 Median Days Away From Work Due to Injury, by Age Group

13 Healthcare Costs: Effects of Age Annual Medical Costs $11,909 $11,965 $10,785 $7,991 $12,000 $9,000 $5,114 $5,710 $6,625 $7,989 $8,927 $6,000 $3,000 $0 $4,620 $2,565 $3,353 $4,613 $3,734 $2,193 $2,740 $1,776 $5, Age Range High Med Risk Low Edington DW. Zero Trends: Health As a Serious Economic Strategy. Health Management Research Center, University of Michigan Edington, American Journal of Health Promotion. 15(5): , 2001

14 But retirement will take care of the aging workforce problem, right?

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21 Healthcare Costs: Effects of Age and Health Risk Annual Medical Costs $11,909 $11,965 $10,785 $7,991 $12,000 $9,000 $5,114 $5,710 $6,625 $7,989 $8,927 $6,000 $3,000 $0 $4,620 $2,565 $3,353 $4,613 $3,734 $2,193 $2,740 $1,776 $5, Age Range High Med Risk Low Edington DW. Zero Trends: Health As a Serious Economic Strategy. Health Management Research Center, University of Michigan Edington, American Journal of Health Promotion. 15(5): , 2001

22 Estimated Health Risks of Working Population Body Weight Stress Safety Belt Usage Physical Activity Blood Pressure Life Satisfaction Smoking Perception of Health Illness Days Existing Medical Problem Cholesterol Alcohol Zero Risk 41.8% 31.8% 28.6% 23.3% 22.8% 22.4% 14.4% 13.7% 10.9% 9.2% 8.3% 2.9% 14.0% Overall Risk Levels Low Risk 55.3% Medium Risk 27.7% High Risk 17.0% 22

23 $90,000

24 Healthcare Costs $1.00 Productivity Loss $2.30

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26 Non-Fatal Occupational Injury and Illness Rates per 100 FTE 26

27 Fatal Work Injuries per 100,00 FTE 27

28 Increases in Frequency and Severity of Injuries Associated with Poor Baseline Health Numerous studies have shown an increased likelihood of workplace injuries and illnesses for those with poor baseline health Not just strain/sprains and WRMSD Even greater research on increased severity (i.e., increased duration of recovery, increased cost/healthcare utilization, decreased likelihood of full recovery, increased risk of complications) 28

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30 Opportunities

31 70 % of illness is lifestyle related and thus may be preventable Mayo Clinic (2003), Direct and Indirect Benefits of Health Promotion Programs

32 Integrating Health and Safety

33 Focus today is how to best integrate health and safety programs to achieve optimal benefits Health Safety

34 3 Logics of Integration 1. Avoid Gaps 2. Avoid Duplication of Efforts 3. Avoid Sub- Optimization/Risk Shifting 35

35 Dollars Study Linking Worker Health with the Market Performance Publicly Traded CHAA Employers vs. S&P $17, $9, Portfolio Worth (6/30) S&P 500 Fabius R, et al. The link between workforce health and safety and the health of the bottom line: Tracking market performance of companies that nurture a culture of health. J Occup Environ Med. 2013;55(9):

36 VOI Study Linking Worker Health with the Market Performance

37 Taking Integration to the Next Level: The Integrated Health & Safety Summit Gaining traction among thought leaders

38 Journal for Occupational and Environmental Medicine

39 The Process Plan Rationale & Motivation Review & Adjust Plan Integrating Health & Safety for Operational Excellence Assess & Evaluate Current Standings Monitor & Evaluate Plan Implement Plan

40 A New Integrated Health & Safety Index aligned with the Dow Jones Sustainability Index Economic Leadership & Management Healthcare Cost, Absence & Disability Management Integrated Health & Productivity Dow Jones Sustainability Indices Integrated Health & Safety Index Environmental Culture of Health & Safety Healthy & Safe Environment Healthy & Safe Workers Social Prevention & Wellness Value Based Benefits Management Corporate Social Responsibility impacting Community Health Loeppke, R; Hohn, T; et.al. Integrating Health and Safety in the Workplace: How Closely Aligning Health and Safety Strategies can Yield Measureable Benefits. Journal of Occupational & Environmental Medicine 2015: 57 (5): May, 2015.

41 Integrated Health & Safety

42 Roundtable Outcomes The Non Negotiable 1. Create an overarching management structure 2. Use a holistic approach 3. Make a commitment 4. Present the business case 5. Prepare for new education for business professionals 6. Get everyone involved 7. Nurture a culture of health & safety

43 Standard UL904Z: Integrated Health and Safety in the Workplace

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45 UL-ASSE Integrated Health and Safety Program Survey 37% 2% 7% 26 23% 12% 19% Company Size Manufacturing Oil & Gas Services Public Sector Other Not Specified ASSE members surveyed Regression analysis Investigating the influence of organizational structure, leadership and communications On the perception of degree of integration of health and safety < ,000+

46 10 Factors Supporting Integrated Health and Safety Management 1. Written policy 2. Incorporation into larger business plans 3. A discrete budget 4. Multiple ways of communicating 5. Frequent communications 6. All stakeholders coordinated in the implementation 7. At least one person with responsibility 8. Senior management is commitment 9. Mid-level managers and supervisors are committed 10. Mid-level managers and supervisors accept their responsibilities

47 Organizational Structures: Policy & Budget Policy Budget ß =.63, R 2 =.39 p <.001 ß =.58, R 2 =.30 p <.001

48 Organizational Structures: Champion in Place & Part of Larger Business Plan Champion Part of Larger Plan ß =.48, R 2 =.22 p <.001 ß =.67, R 2 =.41 p <.001

49 Leadership: Senior Management Commitment Senior Management Commitment ß =.65, R 2 =.37 p <.001

50 Communications: Methods & Frequency Multiple Means of Communication Frequent Communications ß =.70, R 2 =.39 p <.001 ß =.68, R 2 =.42 p <.001

51 Stakeholder Engagement Stakeholder Engagement ß =.60, R 2 =.33 p <.001

52 UL-ASSE Integrated Health and Safety Program Survey - Key Takeaways Begins with senior management commitment A well written policy IHS is incorporated into larger business plans Frequent and diverse communications with stakeholders throughout design and implementation

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54 Success Stories

55 Dow Chemical Priorities: For Integrating Health and Safety Health as a Business Performance Driver and Manage Costs Safety Reliability Human Capital Priorities Engagement Talent: Attract and Retain Human Performance Sustainability Corporate Social Responsibility Corporate Reputation Source: Dr. Cathy Baase Corporate Medical Director, Dow Chemical 58

56 Target Behaviors and Risks that Impact Health, Safety and Performance 8 risks and behaviors 1. Diabetes 2. Coronary artery disease 3. Hypertension 4. Back pain 5. Obesity 6. Cancer 7. Asthma drive 15 chronic conditions 8. Arthritis 9. Allergies 10. Sinusitis 11. Depression 12. Heart failure 13. Pulmonary disease 14. Kidney disease 15. High cholesterol Accounting for 80% of total costs for all chronic illnesses worldwide Companies that target 3 major modifiable risk factors can save an average of $700/employee/year in health care costs and productivity improvements. Source: 2010 World Economic Forum Source: Dr. Cathy Baase Corporate Medical Director, Dow Chemical 59

57 Dow Outcomes from Integrated Health & Safety Strategies Health 9% better health risk profile 17% less chronic health conditions 17% less spend on chronic health conditions Safety Dow workers are 20 times less likely to experience injury and illness when compared to overall U.S. manufacturing injury and illness rate. In 2011, the Dow Injury and Illness rate was 0.28 per 200,000 hours of work. The 2015 Goal of 0.12 per 200,000 hours (75% improvement from 2005 rate). Economic 5 + year healthcare cost trend is < 2% Cumulative savings since 2004 is > $150MM Source: Dr. Cathy Baase Corporate Medical Director, Dow Chemical

58 Health $ Safety Work