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Client:City of LaPorte
<br />Lives:400
<br />Industry (Select From List)Government18%Annual EE Turn
<br />Utilization / Yr:90%72.4Est. Physicals
<br />Sites:1
<br />PMPM Rate:$15.50 Service:
<br />Local Physical Cost:5-day
<br />Emp Hrly Rate:$35.00 3-day
<br />Annual Emp Incr:2.0%2-day X
<br />Medical Inflation:5.0%
<br />Prescription Avoidances / Yr:3
<br />Cost of prescription:$309
<br />Medicine At Work ROI Estimator Hospital Avoidances / Yr:0.5
<br />Cost of Hospital Stay$14,731
<br />METHOD 1 - Medicine At Work Experiential Data
<br />Value SummaryYr 1Yr 2Yr 3
<br />Hard-Dollar Savings
<br />Avoided Medical Claims(1)$144,810$152,051$159,653
<br />Pre-Employment Physical Savings @ $25 per
<br />Less: Medicine at Work Fees (74,400) (74,400) (74,400)
<br />Annual (Investment) / Savings by Client 70,410 77,651 85,253
<br />Soft-Dollar Savings
<br />Productivity -- Time Away for Dr. Visits(2) 50,400 51,408 52,436
<br /> 17,136 17,479 17,828
<br />Productivity -- Untreated Conditions(3)
<br />Reduced Prescribed Medications (4) 927 1,854 2,781
<br />Avoided Hospital Stays (5) 7,366 7,734 8,120
<br />Total Soft-Dollar Savings 67,536 68,887 70,264
<br />Total Savings$137,946$146,537$155,517
<br />With One-Half the Soft-Dollar Savings$104,178$112,094$120,385
<br />Return on Investment (total savings)185%197%209%
<br />Return on Investment (using half Soft-Dollar savings)140%151%162%
<br />(1) Medicine at Work obtains data from customer surveys that states the employee's alternative if they did not use the clinic. Based on historical
<br />apportionment, we determined the apportionment of clinic visits.
<br />Would Have Gone Claim
<br />Otherwise %Apportioned VisitsCharges**Savings
<br />Emergency Room16% 58$1,800$103,680
<br />Urgent Care Clinic16% 58$225$12,960
<br />Walk-in Clinic11% 40$75$2,970
<br />Clinic Visits40% 144$175$25,200
<br />Done Nothing17% 61$0$0
<br />100% 360$144,810
<br />**Typical Avg. Cost of Care Episode
<br />(2) Lost productivity cost is calculated assuming four (4) hours out of office for a doctor visit, times average employee hourly rate, times evidentiary
<br />estimated number of doctor visits.
<br />(3) Untreated case productivity cost is calculated assuming eight (8) hour day lost when employee does nothing (stays home), times average employee
<br />hourly rate, times evidentiary number of cases.
<br />(4) Reduced prescribed medication cost is estimated as the annual savings for number of unneccessary prescriptions eliminated due to improved health
<br />management across the covered lives group.
<br />(5) Avoided hospital stay cost is estimated as the annual savings for a number of avoided hospital stay days due to improved health management across
<br />the covered lives group.
<br />METHOD 2 - CDC Data - http://www.cdc.gov/nchs/fastats/physician-visits.htm
<br />Value SummaryYr 1Yr 2Yr 3
<br />Hard-Dollar Savings
<br />$127,778$134,167$140,875
<br />Avoided Medical Claims (6)
<br />Pre-Employment Physical Savings @ $25 per$0$0$0
<br />Less: Medicine at Work Fees (74,400) (74,400) (74,400)
<br />Annual (Investment) / Savings by Client 53,378 59,767 66,475
<br />Soft-Dollar Savings
<br /> 50,400 51,408 52,436
<br />Productivity -- Time Away for Dr. Visits(2)
<br />Productivity -- Untreated Conditions(3) 17,136 17,479 17,828
<br /> 927 1,854 2,781
<br />Reduced Prescribed Medications (4)
<br />Avoided Hospital Stays (5) 7,366 7,734 8,120
<br />Total Soft-Dollar Savings 67,536 68,887 70,264
<br />Total Savings$120,914$128,654$136,740
<br />With One-Half the Soft-Dollar Savings$87,146$94,210$101,607
<br />Return on Investment (total savings)163%173%184%
<br />Return on Investment (using half Soft-Dollar savings)117%127%137%
<br />(6) Based on CDC apportionment of clinic visit types, we apportioned the clinic visits
<br />Claim
<br /># of visitsApportionClinic RatesSavings
<br />Emergency Room0.44 39$1,800$70,200
<br />Urgent Care Visit0.32 28$225$6,313
<br />Clinic Visits3.32 293$175$51,265
<br />4.08 360$127,778
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