Quad/Graphics is a champion of value-based benefit design with reports that its subsidiary, QuadMed, has reduced healthcare costs to approximately $6,800 per employee – 30 percent less than the average similar-sized manufacturer in the Midwest. A member of The Center for Health Value Innovation (www.vbhealth.org), the nation’s premier organization dedicated to establishing value and producing evidence for sustainable health and financial improvement, Quad/Graphics is the largest privately held commercial printer in the world with 10,500 employees and $2B annual sales.
Starting with a small worksite health-care clinic at the Quad/Graphics’ plant in Pewaukee, Wisconsin, QuadMed took the ground-breaking approach of bringing nearly all primary healthcare services in-house – eliminating costly middlemen and burdensome paperwork. Today, QuadMed employs its own medical staff, operates its own laboratory, pharmacy, fitness and rehabilitation centers, and contracts with local hospitals for specialized and advanced care. Employees more actively participate in preventive healthcare and spend fewer days in the hospital.
“Our mission is to control corporate healthcare cost trends by providing a full range of employer-sponsored healthcare services, while enhancing employee healthcare quality through best practice guidelines and protocols,” states Raymond Zastrow, M.D., president of QuadMed and a Fellow of The Center. “Our proactive approach and focus on holistic, evidence-based care is reflected in our operating values.”
The results have been remarkable: in 2006, the total costs for participants fell below the benchmark by 32 percent. QuadMed’s cost for their Lean You! incentivized wellness program of 2005 totaled $240,900 compared to the cost avoidance estimate of $550,000 for early diagnosis of four cases of cancer.
An analysis of corporate healthcare data revealed that obesity was a primary driver of employee healthcare costs, with 82 percent higher Rx costs in the overweight/obese population at Quad/Graphics than in the “normal weight” population; 80 percent higher inpatient costs; and 78 percent higher outpatient costs. The value-based design solution called for Quad/Graphics to remove barriers to care and create incentives to this high-risk group of employees. This translated into eliminating co-pays for weight management expenses or diabetes management.
“These results have earned QuadMed national recognition as a model for other companies concerned with out-of-control healthcare cost trends,” adds Zastrow. “QuadMed now offers this employer-managed healthcare option to other companies nationwide.”
Quad/Graphics has now initiated this program across all its locations, helping to identify potential employee health risks before they occur and subsequently directing employees to an appropriate course of treatment. With decreased utilization of inappropriate services, such as rescue drugs and emergency room visits coupled with a reduction in disability and worker compensation days, QuadMed has reduced the cost trend for Quad/Graphics.
According to Cyndy Nayer, president and executive director of the Center, “The Quad/Graphics experience is another triumph for value-based design. Our members learn valuable lessons from one another and benefit from the ongoing, collegial association.”
About The Center for Health Value Innovation
Launched in 2007, The Center for Health Value Innovation is a not-for-profit (501c3) organization representing industry stakeholders committed to sharing the evidence that value-based health designs improve health status and reduce health cost inflation. Members include large and mid-size employers, health plans, integrated delivery systems, self-funded unions, municipal and state governments, medical management firms, pharmacy benefits management companies, vendor organizations and others which benefit from analytic tools, educational programs and collaborative connections to innovators in value-based health design. Visit www.vbhealth.org.
Quad/Graphics
Founded in 1971, Quad/Graphics is the largest privately held commercial printer in the world with 12,000 employees and $2 billion in annual sales. The company has ten printing facilities in the United States, as well as partnerships in Argentina, Brazil, and Poland. Quad/Graphics prints numerous magazines, including Milwaukee Magazine, Playboy, Newsweek, Time, and Sports Illustrated. Visit www.qg.com
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