Cash spurs hospital staff to stay fit - St. Luke's Episcopal Hospital, Houston, Texas; Employee Wellness Credits Program rewards employees for being healthy - Provider Perspective - Column

Healthcare Financial Management, Oct, 1993 by Bill Siwicki

Employees at St. Luke's Episcopal Hospital in Houston, Texas, are leading healthier, safer lives thanks to the old "carrot and stick" method. Only at St. Luke's, the "carrot" has been replaced with cash and the "stick" has been thrown away.

Staff at St. Luke's Hospital, a 949-bed, not-for-profit, tertiary care facility with more than 4,000 employees, have implemented the Employee Wellness Credits Program, which rewards hospital employees with an extra $5 per paycheck if they adhere to program stipulations.

The program pays full- and part-time employees up to $130 a year if they exercise regularly, do not use tobacco products, wear seatbelts, and maintain weight, cholesterol, and blood pressure within normal limits.

Based on the number of program stipulations employees meet, program facilitators award wellness credits to employees. The accumulation of credits determines whether or not employees receive the bi-weekly stipends.

The Employee Wellness Credits Program was initiated January 1, 1993, at St. Luke's, as a means of controlling the rising costs of healthcare claims. According to the results of the program's initial wellness screenings, 80 percent of hospital employees wear their seatbelts, 72 percent are nonsmokers, and 70 percent passed two out of four health risk assessment questions.

Of the 3,400 employees participating in the program, only 18 percent did not receive any wellness credits. But those employees who do not receive full credits can work toward improving their lifestyles to pass periodic wellness screenings and qualify for credits in the future.

"The program evolved out of the human resources department as a way of addressing the need to effectively use the dollars the hospital was contributing to the employee benefits program," states Andy Brown, director of employee benefits at St. Luke's. "Our philosophy is that, to a certain extent, employees should be responsible for managing the healthcare dollars that are invested for them and that they themselves invest."

The money to pay for the program came out of funds the hospital previously used to pay for employee benefits. Consequently, rates for employee benefits rose in 1993. But if employees achieve the total amount of credits in the program, the money they are awarded makes up the difference between the 1992 and 1993 rates. The net effect is that if employees do not measure up to the standards of the wellness program, they will have to pay more for their health insurance than they have in the past.

As a result, the program affords employees the opportunity to become more health-conscious and the hospital the opportunity to have healthier employees and fewer healthcare claims.

"The Employee Wellness Credits Program is great because it gives people the incentive to take care of their health," observes V.K. Dorai, senior business analyst at St. Luke's Episcopal Hospital and a member of HFMA's Texas Gulf Coast Chapter. "I know that some of the wellness sessions offered at the hospital, like lunchtime aerobics, have been well attended--a lot of people are getting involved and taking advantage of these new benefits.

"The program encourages employees to exercise, stop smoking, and wear seatbelts, and that alone is a great reason to have a program like this."

Bill Siwicki is associate editor of Healthcare Financial Management. Suggestions for Provider Perspective topics should be sent to his attention at HFMA, Two Westbrook Corporate Center, Suite 700, Westchester, Illinois, 60154-5700.