The Chicago Health Simulator

The 5th Health Economy Simulator in our series of nationwide events kicked off yesterday morning.  If you don’t recall, the Health Economy Simulator (@healthsim on twitter) is a program put on by Humana’s Leadership Institute to teach health industry stakeholders how the health economy works.  Our agency, BTS, has created a system that allows people to manage the system for “three years” over the course of two days.  Participants win by lowering costs, improving outcomes, and benefiting the consumers.  Here is a video explaining what our program is:

This time the sim is being held in Chicago.  Once again we’re twittering and posting photos on flickr.  Later on today we’ll have our first video up on Youtube.  Because this is the second healthsim that has enjoyed the social media treatment, we’re looking forward to seeing some growth in the Linked In Group (http://bit.ly/32VIcx).  If you’re interested in connecting with other prominent members of the health community, please join us on Linked In.

Here in Chicago, we have gathered some really impressive people: CEOs of the Chicago health care system, the President of the local American Heart Association, doctors and surgeons, and more.  They are really engage in learning about how this system works.  We brought in Professor Scott Wallace from Darden Business School at University of Virgina.  He had some very interesting insights on value based health care.  You can read slides from his presentation here: http://www.hbs.edu/rhc/speaking.html.  Some of the participants commented: as a physician, this was incredible valuable.  More significant than some of the things I learned about patient care in medical school.

What are your thoughts?

Healthsim has a Conversation with Former Surgeon General Dr. Richard Carmona

In a few minutes we will sit down to listen to Dr. Richard Carmona, the 17th Surgeon General of the United Status and a leading health advocate.  His speech will cover what he believes are key issues that our HES teams will face today.

It’s interesting to note that a number of the HES participants are close friends with Dr. Carmona.  The caliber of our participants is very high.

Dr. Carmona entered the room following an introduction from the Humana Arizona Market President.  Dr. Carmona had a humble beginning and rose to prominence on a very non-traditional path.  He was a high school drop-out turned decorated special forces officer in Vietnam who returned to get his GED and graduate from the top of his class at UC San Francisco medical school.  He has spent time as a police officer, has created and managed statewide EMS systems, and has practiced vascular surgery and emergency medicine.  In 2002 he was confirmed unanimously as Surgeon General.  During his term he focused on preventative medicine and wellness among other duties.  Not long after becoming surgeon general, his former high school awarded him an honorary high school diploma.

Dr. Carmona Takes the Stage

Dr. Carmona Takes the Stage

Dr. Carmona quickly launched into a description of how the major health issues facing America could be solved and result in drastic change.  The lowest hanging fruit was smoking.  In 1964 the surgeon general created the first surgeon general’s report on smoking.  He enumerated deleterious affects of smoking on individual health and on the cost of care.  In 40 years things have gotten better, but the solution isn’t there.  We still haven’t been able to bring costs down.  The government still subsidizes tobacco farmers.  Carmona’s point was that we have to change the way we do business.

Carmona then turned to the number two (closing on number one) killer in America: Obesity.    As you gain weight you gain risk for all kinds of disease.   Once again the method of solving the obesity epidemic is to change the way we do business.  A lot of nutrition issues stem from Farm Bills that were created decades ago.  We subsidized farmers to grow things that make people fat.  Historically these bills were created to protect small farms, but there aren’t many small farms any longer.  Most of the food we eat doesn’t come from our local communities.  Carmona advocated subsidizing local farmers markets instead.

These are variables that aren’t in our simulation.  They are national issues, and may not fit in with the small community scope of HES, but they are things one must consider when trying to cut healthcare costs.

Some representatives in congress once asked Carmona, “If we make America healthier, wouldn’t it cost the country more since they’re living longer?” His answer was yes, but who wouldn’t be willing to pay for more quality years?  No one wants to spend 20 years on a ventilator.  The longer people are working, living good lives, the more taxes they’re paying for that level of care over the years; and its better for everyone.

After 9/11 Carmona stood in front of the White House and equated obesity with terrorism.  He claimed we are in a war against the death of 9 million children, saddled with chronic disease in the years to come.  Carmona called it a national security issue.  When the White House called him, asking what he was doing, he explained: Our military is lacking in troops because many people can’t pass their physical health requirements today.  In a few years, those 9 million overweight or obese children are going to be unable to join the military and therefore will be unable to defend our country.  In time, our country won’t be fit enough to support the military any longer.  The military knows this and just a few months ago started a pre-boot camp in South Carolina designed to get people in shape just so they could qualify for traditional boot camp.  To Carmona, this indicated a major national security issue.

In the 1900s, Native Americans lived till 70 or 80 years old, while all other Americans died at the age of 50, typically from infectious disease.  This was because the Native Americans ate organic, locally grown food, exercised everyday, and lived without the stress of western life.  Today Native Americans die 20 years earlier than everyone else in America.  They have higher rates of obesity, diabetes, and depression than almost any other demographic.  The suicide rate among Native American youth is astounding.  The Native Americans are cloistered, stuck on the reservation, and forced to eat the food that they’re given.  Carmona told us about a tribe he visited that historically fished in a river that was once rich with salmon.  When the tribe was moved to a reservation, their obesity and depression rates skyrocketed.  According to the researchers studying the reservation—the children had zero Omega-3 in their diet because fish was no longer part of their daily intake.  The researchers started to supplement the diets and in time saw a rapid decline in obesity and depression.

So how do we take the complicated medical information that we have gathered from researchers and clinicians and translate it to inform the general public?  How do we change behavior?

Camona tells us we have to tell people what matters to them.  Dr. Carmona grew up in Harlem in a largely Hispanic community.  The grandmothers, or abuelitas in that area would generally cook very fatty food, rich with lard and meat and low in fresh fruits and vegetables.   Carmona realized that he couldn’t tell those grandmothers that they needed to change the way they cooked.  You didn’t mess with the abuelita’s kitchen.  In order to change behavior, you had to tell them what they were feeding their grandkids was destroying their futures.  The fear of the suffering their progeny might face due to their eating habits was far more motivational than being told their cooking was unhealthy.

Dr. Carmona Answers Questions

Dr. Carmona Answers Questions

Dr. Carmona was very adamant about involving the people in their health care needs.  He made it clear that without behavioral change, nothing would ever be fixed.  But a lot of the responsibility of bringing about that level of participation rests on the shoulders of decision makers.  Health literacy is very important to getting people to demand the “burning platform” of health care improvement.  We have to convince people that living longer, younger is better than anything else; but they have to be a participant in this cultural change.

Carmona had great things to say about the Health Economy Simulator:

“Americans want and expect the best healthcare, but they want it yesterday and they don’t want to pay for it.  In simulators like (HES) we see that everyone has to give a little…. I’ve seen nothing else like it…I love this program.”

He also stressed the importance of health in relation to issues like security, “No matter what sector of society you look at, if you don’t have health, you don’t have anything.”

In the end, our conversation with Dr. Richard Carmona returned to the same topic: the need for behavioral change from the top down and the bottom up.  Without the participation of the citizenry many of our efforts to improve the health of Americans will fail.  This sentiment seemed to be shared by the entire audience, who gave Carmona a resounding applause.

Dr. Carmona is now the Vice Chairman of Canyon Ranch, CEO of Canyon Ranch Health Division, and President of Canyon Ranch Institute.  He is also a distinguished professor of public health at the Mel and Enid Zuckerman College of Public Health at the University of Arizona.  He lives in Tucson, AZ.

All statistics and opinions in this post are a summary of Dr. Richard Carmona’s address to the Arizona Health Economy Simulator and do not reflect the opinions of Humana Inc., or its subsidiaries.

Health Economy Simulator Results: Year One

The Health Economy Simulator is set up so that the participants go through three years of Healthcare Planning, adjusting costs along the way and choosing investments that will pay off in terms of profitability for stakeholders and value for consumers.  At the end of each segment the organization in charge of running the simulation goes through the results in a fun and engaging way.  First they wrote some scandal headlines about how a few of the teams decided to cut costs.  Other headlines related to the overconfidence some of the groups expressed.  Finally we got to the results.

The team that won: Pearl Jam by quite a large margin (not that this means anything to you…).  However, this is just the end of year one.  Many of the teams chose a long-term strategy—spend more on IT, infrastructure, and Research into wellness programs, and save money now.  Those teams aren’t doing so well in year one.  Others chose to cut costs and improve savings.  Some teams chose to increase taxes.    Those teams would be on top in year one.  But over time, consumer satisfaction, quality of care, and unforeseen costs could come back to bite them.

The best example of long term vs. short term strategized related to IT investment.  Those that put money towards standardization of health records might have experienced cost issues in year one.  But when the government comes up with some form of standardization that forces the teams that didn’t invest in year one to scramble, they’ll end up losing a lot more money.

The teams that did best had a value-based insurance policy.  They were looking at the value of your treatment to you and priced based on that.  For example, something that would save your life would be free.  But your RLS drugs might be more expensive, because those drugs aren’t keeping you alive.

The specific criteria for winning were listed for the participants at the beginning of the program:

  • Population Wellness – improved overall health and fewer chronic conditions.
  • Public Satisfaction – increased consumer engagement and satisfaction.
  • Health Outcomes – improved health outcomes and quality of life for patients including better managed chronic conditions.
  • Cost/Capita – reduced health expenditures.
  • Economic Growth – A better local health system with healthier, more satisfied people and more profitable companies will attract more employers and promote economic growth.

In the end, how much hospitals, insurers, doctors, and payers made, plus how good the quality of care was, how low the cost was for consumers, and how satisfied the consumers were balanced the points out.  As the “years” go on, the participants learn more about the consequences of their decisions and have to figure out how to fix some of the mistakes they may have made at the beginning of the simulation.

For me, the most interesting aspect was that the teams with the most focus on wellness in their communities did the best overall.  I think that is a great sign of things to come.

Image from Flickr User PixelPlacebo

Image from Flickr User PixelPlacebo

So who is winning?  It isn’t necessarily team Pearl Jam.  Everything could change in year three.  We’ll just have to wait to see what will work best for the health economy.

Facts about the Arizona HES

Interested in learning more about the Health Economy Simulation in Arizona?  Enjoy these facts.

The Arizona Regional Health Economy Simulator is a two-day learning exercise that invites key healthcare decision-makers throughout Arizona and Nevada to step outside of their daily roles to discuss local healthcare reform and build collaborative relationships for the future.

Participants will include local representatives of healthcare payers, providers, hospitals, business and government whose decisions affect the local health economy and, ultimately, access and quality of care for consumers.

Shedding their day-to-day roles and adopting unfamiliar advocacy positions, participants will break into teams as part of a friendly competition to sort through complex, inter-related variables important to the spectrum of health economy stakeholders and create a new health economy. In this regional Health Economy Simulator, teams will be assembled based on geographic location, with participants from Tucson, Phoenix or Las Vegas forming teams.

At the conclusion of the two-day simulator, each team will receive a quantitative, computer-generated assessment of the impact of their decisions on consumers and stakeholders, plus a qualitative comparison of each team’s performance.

Most importantly, however, participants will gain powerful new insights into the roles, functions and unique challenges facing varied stakeholders. The simulator also will foster collaborative relationships with an eye toward creating the best possible health and healthcare services for Arizona and Nevada; setting reasonable cost for employers, taxpayers and consumers; and creating healthier and more engaged consumers, and a healthier economy.

Sponsored by Humana, the Arizona Regional Health Economy Simulator is one of a number of regional events Humana is sponsoring as health care reform is at the top of state and national agendas. Humana is one of the nation’s largest publicly traded health and supplemental benefits companies, with approximately 10.4 million medical members, including more than 171,500 in Arizona and 42,000 in Nevada.

Health Economy Simulation Day One

Introduction the Healthsim

Introducing the Healthsim

Today marks the beginning of the Health Economy Simulator.  This event is the product of the Leadership Development group from Humana Inc.  This is our fourth simulation, but the first we’re making public through the use of social media.  The purpose of this simulation is to bring together participants who represent the decision makers in the health economy.  Healthcare CEOs, academics, insurance industry representatives, Doctors, and more will convene in Scottsdale, Arizona today and tomorrow to figure out how to best run the health economy.

In terms of social media, you can look to this site as your hub for everything we’re doing.  We have a YouTube channel (youtube.com/healthsim),  a twitter account (twitter.com/healthsim), a flickr account (flickr.com/user/healthsim), and a group on Linked In called the Humana Health Economy Simulator (http://bit.ly/32VIcx).  If you are interested in the Health Economy please join our group and participate in the discussion on twitter with the hashtag #healthsim.

Over the course of the next few years we will try to grow a community of health experts.  Hopefully we will see a surge of activity every time we host one of the simulations.  We’re planning on having them all over the world.  We strongly believe that facilitating these kinds of communities will lead to discussions we need to have to make healthcare better.

We will be updating this blog as the simulation goes on, stay tuned by subscribing to our RSS feed or by searching “healthsim” on twitter.  Thanks for reading.