March 28, 2002

Using Population Health Management to Enhance Productivity in the Workplace

By Peter H. Wald , MD, MPH
Board-Certified, Occupational Medicine, Medical Toxicology, Internal Medicine
Principal, WorkCare

The process of identifying and intervening on high prevalence medical “intervention targets” is often referred to as Population Health Management. This management tool is one of the resources used by occupational health practitioners to bolster employee productivity. Population Health Management focuses upon improving the health of a specific population (work environment, community, etc.) while identifying and addressing high-burden (and often costly) diseases.  Preventing diseases is less costly than medical treatment, so this approach is also an effective means of cost containment.   

Population Health Management uses client-specific data to assess total company health costs (medical, disability and workers' compensation costs), identify population health intervention targets and implement appropriate health and wellness activities to impact these targets.  Intervention targets are categorized by population groups, individuals or workplace.

Using the Pareto Analysis to Assess Needs

Population Health Management relies on using “Health Content Experts” (usually physicians who are experienced in the operation of the healthcare, disability, and workers' compensation systems) to analyze a company's health benefits data.   The core analytic method is a Pareto analysis of benefit consumption.  A Pareto analysis attempts to understand who is using a service or benefit, and is the origin of the “80/20” rule.  Usually, 80% of a benefit or service is used by only 20% of the population.

Conducting a Pareto analysis of total medical and disability costs is the first step in developing a comprehensive strategy to deliver health and wellness benefits.  Using this tool, population, individual and workplace intervention targets are established along with respective health and wellness programs designed to impact these targets.

Measuring Benefit Costs and Utilization:  A Core Principle in Population Health

The adage that you can't manage what you can't measure is especially true when it concerns employee health benefits.  Benefits have always been viewed as a fixed cost of doing business.  In most companies, the administration of benefits has been managed, but the underlying structure of the plans has rarely been analyzed.  Population Health Management uses the engineering model of a closed feedback system.  Under this model, health and wellness plan data (medical, disability and workers' compensation costs) are collected and analyzed for use and cost maldistribution .  This analysis is then used to develop intervention targets. 

With rising health benefit costs, there is an increasing need for companies to employ cost-avoidance strategies.  Using Population Health Management, through a company-wide integrated approach, maximizes health-care investment costs and improves worker productivity.

For more information on Population Health services, contact mtrujillo@workcare.com