Centroplex Health System (CHS), Workwell offers a top Occupational Medical Program. It helps to reduce healthcare costs, increase productivity, decrease absenteism as well as improve employee morale. Workwell also attracts and retains high-quality workers and provides a positive return. Workwell, Killeen’s first Industrial Occupational Medicine Program, will help area businesses become more productive while lowering overall costs.
In their attempt to reduce health care costs, employers “want” occupational medicine clinics that provide them with the following components: accessibility, drug screening services, high quality staff, state-of-the-art care, and a wide scope of services. Workwell will help area employers fulfill their ‘#8220’ and #8220 ‘needs.
Workwell’s existence is based upon two simple facts.
- Healthy employees are more productive than chronically ill employees.
- It costs less to prevent injuries than to treat them after they occur.
Workwell helps employees make healthier choices and reduces company health care costs. It also increases worker productivity. The following factors will impact your health care spending: lower medical insurance premiums and absenteism, lower turnover rates, fewer worker’s compensation claims, fewer tardiness, shorter hospital stays, and lower medical insurance premiums.
Centroplex Health System’s (CHS), relationship is a key advantage for Workwell. CHS is the choice provider for health services in its service region and has already supported the crucial structures that are required to establish a successful Occupational Med program, such Workwell. The structures include an Emergency Department and a free-standing walk-in facility (i.e. COMC), an MCO (currently developing), and a network with primary and special physicians. All four of these structures will form a loop, which acts as a catalyst to bring business into Workwell. Workwell then should refer back into these four structures. This completes the loop. The model proposed is to offer Occupational Medicine services–, Workwell and primary care services in one setting, COMC. The service mix will offer a comprehensive alternative to traditional Occupational Health and Primary Care services for our clients employers. This will create a synergy which expands the market and establishes new relationships. It also reduces operating costs and generates new revenues.
Workwell’s keys to success and critical factors for the next three years are:
- Successful marketing strategies/plans for employers are developed and implemented.
- Experienced medical and administrative talent are sought after.
- Enter the Occupational medicine market and create a brand#8221 before the competition.
- Commitment to continuously improve the quality of service.
- Demonstrate a financial returns on investment
- Senior Management’s commitment
CHS can develop and implement an occupational medicine program based on the business plan. Market research indicates that there were 7,720 total worker compensation injuries last year. CHS treated 2,532. In addition, worker compensation injuries are projected to increase to a total of 9,446 in the next four years. This business plan has a five-year goal to position CHS so that it can treat 5,064 workers compensation injuries, and thus achieve 53 percent market share.
Below is a chart that illustrates the overall highlights of the business plan for the next five-years. Total visits to COMC are projected to increase from 11,085 to 15,918 by Year 5. This will result in an increase in total revenues and net surplus.
1.1 Objectives
- Workwell’s key objective is to help ESTABLISH Centroplex Health System and make it the #8220ONE STOP SMOOKING” MEDICAL CENTER OF HEALTH CARE IN ITS SERVICE AREA.
- Provide a full continuum of Industrial Occupational Medicine services that provides responsive, quality medical care to all injured employees.
- By Year 1, you will provide Occupational medicine services to 10 Killeen employers with 50 employees and 20 small employers with 50 employees.
- To expand the market and offer Occupational Medicine services, employers will need to be able to access these zip codes by Year 2.
1.1.1 Observation & Recommendations
OBSERVATIONOccupational health programs have been stepchildren in hospitals because they’ve historically not brought in much revenue. But they could become more lucrative if health systems develop the necessary competencies and sell them directly to employers. Providers have to be proactive as they look for new revenue streams, especially as the value of discounted managed care continues to shrink. Occupational healthcare services provides a way to create positive relationships and build trust with local employers.
RECOMMENDATIONS
The underlying factor in these recommendations is TIME IS OF THE ESSENCE FOR DEVELOPING WORKWELL.
Following are the recommendations (options) being made:
Hire a consultant to help you start your program.
Two main reasons for this recommendation: First, expertise is required in developing an occupational medicine program. Second, why reinvent the wheel when we can learn from proven techniques. All the programs reviewed either hired an experienced occupational physician director or an outside consultant to help the program succeed. CHS does not have the expertise to support this effort and is considering hiring a consulting company.
You can also use these reasons:
CHS can now offer formal occupational medicine programs to both area employers and employees in as little as 30 days. You can use the personnel ($$$) needed to develop this program to hire experts to execute their proven techniques. Senior leaders will feel renewed commitment to the program’s success by spending money on consultants.
CHS is at risk of being ‘canned’ and could be subject to legal action, but it is clear that the positives far outweigh any negatives. Three consulting firms have submitted their bids towards this project. These are Concentra Health Services Florida Hospital, and Occupational Health Research. This information has been included in my presentation.
In-house occupational medicine program
Positives:
Save money.
Programming customized.Negatives:
Time frame
Inadequacy of expertise.
Senior leadership is not committed.
Decision to remain status quo:
If you choose this option, the program will continue to operate as usual.
Positives:
None.Negatives:
Continue to lose revenue
Potential to lose market share
You don’t have the opportunity to network effectively with employers in your area.
Don’t miss your chance to become a #8220one-stop shop#8221 for health care services.
CHS employees will continue to be injured.
Divestiture by COMC
This option involves placing COMC on a marketplace for sale.
Positives:
There is a lot of money.
You can invest the $$$ to develop or expand new programs.
Leaders can spend more time on issues closer to “home”.
CHS should improve its bottom line, at least in the near term.Negatives:
Lose new revenue stream.
Gain market share.
Loss or relocation of prime real estate.
It is possible for a competitor to establish itself in the same setting.
You can lose your identity in the market.
1.2 Mission
Workwell, a premier program in industrial occupational medicine, is customer-focused. The team approach aims to deliver quality occupational health, safety, and rehabilitation services. This includes addressing a person’s overall health (body, mind, and spirit) while building and maintaining partnerships with local businesses.
1.3 Keys to Success
Workwell’s key to success is:
- Development and implementation of a successful marketing strategy/plan to employers.
- Experienced medical and administrative talent are sought after.
- Building a career in Occupational Medicine and entering the market
Brand name before the competition