CIGNA CEO Links Health Care Quality to Nation's Economic Health
Posted on: Thursday, 6 July 2006, 15:00 CDT
PHILADELPHIA, July 6, 2006 /PRNewswire-FirstCall/ -- America's employers, employees, health care providers and insurers need to work closely together in promoting and pursuing good health, because, ultimately, the nation's economy and ability to compete effectively in the global market depends on it, according to H. Edward Hanway, chairman and chief executive officer of CIGNA Corporation.
In a keynote address delivered last week at the Global Six Sigma Summit in Las Vegas, NV, Hanway said, "it's not a stretch to suggest that what happens at the micro level in the health care industry has an impact -- for better or worse -- of macro proportions.
"By improving the health and well-being of individuals, we create a more productive work force," he explained. "By supporting a more productive work force, we contribute to a more competitive business community. By improving business competitiveness, we create a stronger economy. And by strengthening the economy, we build a stronger nation."
America's ailing health care system
Good health depends, first and foremost, on quality care, Hanway noted. But health care quality in America is uneven. For example:
* Studies show that only 55% of adult patients receive recommended care, whether for chronic, acute, or preventive care. This is true across the entire continuum of medical care, from screening and diagnosis through treatment and follow-up. * The 2004 Health Care Quality Report traced nearly 66.5 million avoidable sick days -- and more than $1.8 billion in excess medical costs -- to routine failure to provide needed care. * The Institute of Medicine estimates that 100,000 patients die in hospitals each year due to medical errors -- three times the number of people who die on U.S. highways each year.
"America has the highest per capita spending on health care of any nation in the world, but we're not getting our money's worth," Hanway said. "Consumers are fed up with high costs, limited choices and substandard care. They want better value for their money. High cost does not equate to high quality."
Refocusing on quality
Hanway called on the health care industry to stop focusing exclusively on costs, asserting that improving quality will actually reduce costs. As proof, he pointed to CIGNA's experience with continuous quality improvement, as engendered by Six Sigma principles.
Since implementing Six Sigma and other quality-centered methodologies corporate-wide in 2002, CIGNA has realized annualized savings of $100 million, by significantly improving operations against a variety of metrics. At the same time, the quality of care and services delivered to CIGNA's members has been ranked at the top of the industry by independent organizations, including:
* The National Care Quality Association, a major health advocacy group, which has given CIGNA higher scores than any big carrier for "effectiveness of care" for four years in a row; * The Disease Management Association of America, which awarded CIGNA its 2005 Disease Management Award; * The National Business Group on Health, which named CIGNA a "Best Employer for Healthy Lifestyles" for its efforts in preventing obesity and promoting a healthy lifestyle for its employees; and, * J.D. Power & Associates, which made CIGNA HealthCare the first national health insurance carrier to receive certification for "outstanding customer service experience."
Hanway suggested that other health benefits providers, health plans and stakeholders in the health care delivery system -- including regulators -- could learn from CIGNA's experience.
"The health care industry shares a collective responsibility to address the realities of providing care in the 21st century," he said. "CIGNA's approach to improving health -- combining consumerism and health advocacy, powered by information -- differentiates us in the industry. Blending principles of continuous quality improvement with a true consumerist approach to health care -- an approach in which individuals can make the right health choices for themselves and their families -- is a powerful and promising way to improve health care in America, while truly removing costs from the system."
About CIGNA
As a Business of Caring, CIGNA provides employers with benefits, expertise and services that improve the health, well-being and productivity of their employees. Serving customers, clients and members in the U.S. and around the globe, CIGNA's operating subsidiaries offer a full portfolio of medical, dental, behavioral health, pharmacy and vision care benefits and group life, accident and disability insurance.
CIGNA Corporation
Contact: Paul Gallanda, CIGNA Corporation, +1-215-761-4746,paul.gallanda@cigna.com
Web site: http://www.cigna.com/
Company News On-Call: http://www.prnewswire.com/comp/165050.html
Source: PRNewswire-FirstCall
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