The Johnson & Johnson Story

Fikry Isaac, MD, MPH, FACOEM Vice President, Global Health Services

Chief Medical Officer, Health & Wellness Solutions

Worksite Wellness Council of Massachusetts

September 19, 2014

We all have reasons for why Health matters Usually personal in nature

I want to be

an energetic

mother /

father

I want to

look and

feel better

I want to be

vibrant in

my old age

I don’t want

to be sick!

I want to

provide for

myself and

family to the

best of my

capabilities

But what does good Health mean to the business? It matters if it links to performance and the bottom line!

I want my

employees

to be

productive

and

“present”

We need

the

business to

be

innovative

We need our

employees

to give us a

competitive

edge

We want

to attract

and retain

top talent

Leading with a purpose

• Companies with health as a business

strategy achieve significantly better

financial outcomes and lower

employee turnover

Towers Watson 2011/2012 Staying@Work Report correlates

companies with highly effective health programs with better

financial outcomes:

Higher market premium and shareholder returns

Higher revenue per employee

Lower medical costs per employee

Lower cost trends

$341,000

$473,000

$0$50,000

$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000

Revenue perEmployee

(Industry adjusted)

LowEffectivenessof HealthPrograms

HighEffectivenessof HealthPrograms

The value of Health as a business strategy

4

• An employer’s commitment to employee well-being is as critical as opportunities for

advancement and more important than competitiveness of pay and benefits for overall

job satisfaction

• Sensing that employers care for them is a significant factor in engagement, retention,

recruitment and reputation

• Companies with highly effective health & productivity programs report higher

productivity

Global Leader in

Health Care (Consumer, Medical

Devices and Pharmaceuticals)

More than 250

Operating Companies

In 60 Countries

Selling Products in More Than

175 Countries

125,000 Employees

Worldwide

Company Overview

Leadership & Commitment: The J&J Credo A Health Care Company with Health as a Core Value

6

• Nothing is more important

than the health and well-

being of those we love.

• By caring, one person at a

time, we aspire to help

billions of people live longer,

healthier, happier lives.

This core value has paved the way to

setting foundational goals around the

health & wellbeing of its employees

Johnson & Johnson Strategic Framework Retrieved from:

http://www.jnj.com/strategic-framework

Culture of Health within Johnson & Johnson - Our Journey

Fix The Health Care Crisis One Employee at a Time

2007

harmonization

2004

global launch

1978

big goals

2015

healthy future

2008

new business

1995

integration

1886

visionary

2013

one health

“Our employees are our greatest asset,

and we believe that by investing in their

health, we are investing in the success

of our business.”

Alex Gorsky, Chairman and CEO of

Johnson & Johnson

Achieving a Culture of Health & Wellbeing

Participation & Sustained Engagement •Communication Strategies

•Evaluate engagement scores and other measures of end-user satisfaction

•Leverage personal (e.g. mobile) technology

Integrated Programs and Data • Incorporate program offerings into the daily

routine (healthy eating, movement, etc.)

• Evaluate participation and retention rates

• Integrate disciplines (e.g. mental wellbeing, occupational health, etc.)

Effective Behavior Change • Offer customizable solutions that meet

people “where they are”

• Intrinsic/Extrinsic Incentives

Outcomes / Measurement • Enterprise Goals

• Measure progress & establish accountability

• Demonstrate value based on outcomes

• Evaluate to foster continuous improvement

Scalable to Entire Population • Develop and deploy healthy workplace key

integrated policies that are globally applicable, but locally adaptable

• Leverage technology

What has worked at Johnson & Johnson

Leaving a Handprint Sustaining engagement through a caring environment

Workforce health and

wellbeing programs can

enable a sustainability

“handprint” - one that leads

to a positive impact of

caring through improved

health, associated cost

reductions and maximized

productivity.

PARTICIPATION

AND SUSTAINED

ENGAGEMENT

Johnson & Johnson

Employees and Families

Integrated Holistic Program Delivery

Mental Health & Well-Being

EAP

HealthMedia® Digital Mental Health

Coaching programs

Resiliency/stress management training

Yoga, mindfulness and meditation

Healthy Lifestyle Programs

Health profile and biometrics

Digital Health Coaching programs

Pedometers and million-step challenges

Weight Watchers and nutrition

Tobacco cessation programs (PIQ)

Education & Awareness Programs

Occupational Health &

Disease Management

Onsite occupational health clinics

Employee health centers

Medical surveillance compliance

CareConnect & Health Advocate

Medical benefit integration

Value Added On-Site Services

Physical Therapy

Non-Occupational “Convenient Care” for

minor illnesses

Maternal Health

Phlebotomy

On-site Travel Medicine

Preventative Screenings

Work-Life Integration

Flexibility/Flexible Work Arrangements

Dependent Care Resources

Family Change Support Programs

College & Education Support

Finance & retirement planning

Partnerships with External Organizations

INTEGRATED

PROGRAMS Energy Management

E4PIL 0.5, 1 and 2 day

E-Course

Key notes

Metrics and sustainability

A Multimodality Approach Providing tools, resources and environment support

Person to Person

• Fitness/Wellness Professional

• Occupational Health Nurse, Nurse Practitioners

• Employee Assistance Program Counselors

• Health Advisors

• Group Workshops (Weight Watchers™ at work and in the community, energy mgmt.)

Behavioral Change Offerings

• Exercise Classes

• Health Campaigns (Lose to Win, Pedometer -Million Step Challenge, Steps for Caring, Family Activity Challenge, etc.)

• Energy Management principles

• Local events and educational seminars

Online

• HealthMedia Move™, Nourish™, Balance™, Overcoming Binge Eating

• My Live for Life™ website (Cool Tools, Resources)

• Weight Watchers™ Online

• Mental health screenings

Culture and Environmental Support

• Fitness Centers or Exercise Reimbursement

• walking / running routes

• eatcomplete

• Energy for Performance in Life

• Health Champions

• Communications & Marketing

• Incentives

• Toolkits (i.e. Mental wellbeing)

Allows a choice of value-added services that meet people where they are in their health continuum

INTEGRATED

PROGRAMS

1. A detailed assessment to understand a

person’s unique motivation, confidence and

change barriers.

2. A supportive plan for treatment

– Establish an emotional connection

- Follows proven clinical guidelines

- Incorporates proven behavioral science

models

- Uniquely tailored to each individual

- Longitudinal

- Offers tools, tips and resources

3. Quantifiable Outcomes Measures

A 24/7 health coach with a plan just for modifying or changing

an undesirable health-related behavior

Digital Health Coaching New tools to engage employees and change behavior

BEHAVIOR

CHANGE AND

SCALABILITY

Motivation and Incentives

• Extrinsic Motivators – Medical plan discount ($500) for participating in voluntary health

risk assessment (HRA) and health advising

– Other financial incentives for participation in preventive screening

(colonoscopy), condition management coaching, maternity

support, and healthy weight incentive

• Intrinsic Motivators: – Framing personal health risks as “true health age” or risk of death

or chronic disease

– Resetting mission/story in light of personal feedback

Since 1995 and in just a few years of instituting the benefits incentive, health profile

participation percentage rose from <26% to > 93% - and has remained above 80% ever

since.

The ultimate goal is to drive participation AND engagement via extrinsic/intrinsic motivators

– when combined this will lead to sustainable outcomes.

BEHAVIOR

CHANGE

Toolkits and Online Resources

Access to a suite of centrally-

provided resources makes it

easier for teams to implement

tailored wellness programming

locally.

SCALABLE

PROGRAMS

Measuring Outcomes Global Health Assessment Tool

Information on program data and

population health risks reported annually Distilled to easily retrievable customer

metrics for tracking and trending

INTEGRATED

DATA

MANAGEMENT

Using the data to drive results Friendly competition

Letter from Health Champion

(HR VP) for Asia Pacific

reporting on progress and

comparing results between

sectors

INTEGRATED

DATA

MANAGEMENT

Henke, R.M., Goetzel, R.Z., McHugh, J. & Isaac, F. (2011) Recent Experience

in Health Promotion At Johnson & Johnson: Lower Health Spending, Strong

Return on Investment. 30(3). 490 – 499

What we’ve found at J&J

• Johnson & Johnson health risk trends

significantly better than US and other industries

• Company employees benefited from meaningful

reductions in rates of obesity, high blood

pressure, high cholesterol, tobacco use, physical

inactivity and poor nutrition.

• Johnson & Johnson’s Health & Wellness

program had a proven return on investment

(ROI) (next slide)

• Benchmarking against similar industry shows an

average rate of growth in medical and

pharmaceutical costs that is 3.7% lower

• Lower increases in ER and Inpatient admissions

and higher increases in doctor visits and

prescription drug fills compared to other large

companies

• US Medical Program ranks in top 1/3 compared

against other Peer Companies

17

OUTCOMES

2011 Study Findings (US Data)

Changing Behavior and Outcomes

78.10%

87.50%

20.50%

11.70%

1.40% 0.80%

2006 2013

US Health Risks since 2006

Low

Medium

High

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

US Population Health Risks Comparison

J&J

CDC

B of B

OUTCOMES

A Culture of Health A Sustainable approach to Bend the Health Care Cost Curve

Average Savings 2002-2008 = $565/employee/year

Estimated ROI: $1.88 - $3.92 to $1.00

OUTCOMES

Key Takeaways

• Since the 1950s we’ve had a “sick care” system - Today we are moving closer to a “health care”

system as health & wellness programs are increasing in popularity and effectiveness

• Stakeholders must look beyond health care as a cost that needs to be controlled and see instead

health plans and health and wellness programs as an investment that can be leveraged

• Success springs from a culture of health, which is built into the fabric of the business, communities

and health systems

• Must set short and long term goals and measure outcomes

• Integrate service delivery with innovative solutions that focus on prevention, behavior modification,

and linkage to benefit design

• Use appropriate incentives

• Include family and the community

• Increased productivity and engagement can generate significant cost savings and improved

performance – right people at the right time

• Investment in prevention and health innovation can yield significant economic and social returns

• Good health is not only of great value to individuals and populations, but also to industry and

society.

In short, wellness works and prevention pays.

21

Thank You