Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Can Safeway lead the way in controlling health costs?

Sreedhar Potarazu, MD, MBA
Policy
April 7, 2013
433 Shares
Share
Tweet
Share

SAFEWAY-STORE

There’s been a lot of talk since the healthcare law passed about the success the supermarket chain Safeway has had in controlling costs by aggressively encouraging employees to participate in healthier lifestyles. There has been a lot of marketing and hype and publicity about their success, as well as the success of other employers in the market.

But does such active engagement really work?

The argument for implementing wellness programs and incentives does inherently make sense. There is significant data to support the fact that unhealthy behaviors do contribute to higher healthcare costs. There’s also no question that employees should be held more accountable for their decisions and the impact those decisions have on costs – not just to themselves, but to the employer.

But while financial incentives can be effective in getting people to change behavior in the short term, the challenge is in insuring that employees are consistent.

It is not uncommon for employers these days to make adjustments to copayments and deductibles, based on employee engagement. But the reality is that most employers seldom have the means to measure the cause and effect relationships. They’ve heard anecdotes, alleged success stories, but have not been given data that truly link the impact of their incentives on medical outcomes.

That’s because it is very complicated to bring together all of the necessary data for an employer to be able to measure whether a certain wellness program has truly had an impact on medical outcomes.

Take the case of Safeway, for instance. There have been many reports about Safeway’s success in reducing the trend of health inflation, but when one looks under the covers, the company has many programs in place, none of which are integrated. In addition, there has yet to be published any substantial data to support the notion that their programs have reduced the incidents of chronic disease or utilization of services.

There are many employers who will make investments in onsite clinics, wellness screenings, fitness devices, and spend enormous amounts of money on these initiatives. Without adequate measurement of how engaged a consumer really is, both at home and at work, and accurately linking this data back to clinical outcomes, any claims of success at cost reduction are guess work.

Sreedhar Potarazu is an ophthalmologist and founder and CEO of Vital Spring Technologies. He blogs at Business and Policy.

Prev

Why you need a population health management IT system

April 7, 2013 Kevin 0
…
Next

The co-location of mental health care services in pediatric practices

April 7, 2013 Kevin 0
…

Tagged as: Public Health & Policy

Post navigation

< Previous Post
Why you need a population health management IT system
Next Post >
The co-location of mental health care services in pediatric practices

More by Sreedhar Potarazu, MD, MBA

  • a desk with keyboard and ipad with the kevinmd logo

    A more realistic approach to achieving accountable care

    Sreedhar Potarazu, MD, MBA
  • a desk with keyboard and ipad with the kevinmd logo

    Obamacare is changing the image of the doctor we know and love

    Sreedhar Potarazu, MD, MBA
  • a desk with keyboard and ipad with the kevinmd logo

    Look to Oregon to see if Obamacare will succeed

    Sreedhar Potarazu, MD, MBA

More in Policy

  • The realities of immigrant health care served hot from America’s melting pot

    Stella Cho
  • Healing the damaged nurse-physician dynamic

    Angel J. Mena, MD and Ali Morin, MSN, RN
  • Deaths of despair: an urgent call for a collective response to the crisis in U.S. life expectancy

    Mohammed Umer Waris, MD
  • Breaking down the barriers to effective bar-code medication administration

    Amy Dang Craft
  • The locums industry has a beef problem

    Aaron Morgenstein, MD
  • Canada’s health workers are sounding the alarm. We must act, now.

    Ivy Lynn Bourgeault, PhD
  • Most Popular

  • Past Week

    • The untold struggles patients face with resident doctors

      Denise Reich | Conditions
    • What is driving physicians to the edge of despair?

      Edward T. Creagan, MD | Physician
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician
    • From clocking in to clocking out: the transition to retirement

      Debbie Moore-Black, RN | Conditions
    • From license to loneliness: the dilemma of retired physicians

      Richard Plotzker, MD | Physician
  • Past 6 Months

    • The real cause of America’s opioid crisis: Doctors are not to blame

      Richard A. Lawhern, PhD | Meds
    • Nobody wants this job. Should physicians stick around?

      Katie Klingberg, MD | Physician
    • The vital importance of climate change education in medical schools

      Helen Kim, MD | Policy
    • The fight for reproductive health: Why medication abortion matters

      Catherine Hennessey, MD | Physician
    • Resetting the doctor-patient relationship: Navigating the challenges of modern primary care

      Jeffrey H. Millstein, MD | Physician
    • It’s time for C-suite to contract directly with physicians for part-time work

      Aaron Morgenstein, MD & Corinne Sundar Rao, MD | Physician
  • Recent Posts

    • From license to loneliness: the dilemma of retired physicians

      Richard Plotzker, MD | Physician
    • Tackling the health care crisis with artificial intelligence: Combating physician and nursing shortages in the United States

      Harvey Castro, MD, MBA | Tech
    • From hope to heartbreak: a story of loss in the ICU

      Ton La, Jr., MD, JD | Conditions
    • Unlearning our habits: a journey from intelligence to wisdom

      Brian Sayers, MD | Physician
    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 12 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

CME Spotlights

From MedPage Today

Latest News

  • Team-Building Gone Wrong; An MD's Wildly Variable Income; Skin Docs' Top Sunscreens
  • Prenatal Thalidomide and Cancer Risk; MDS Combo Shows Promise; Symptoms Often Missed
  • Why I Don't Identify With Women's History Month as a Black Doctor
  • A Drink or Two a Day Won't Help Prolong Life
  • Sleep, Exercise, and Death; Pope Improving, Eats Pizza; Obesity Med Strategies

Meeting Coverage

  • VTE Risk in Recurrent Ovarian Cancer Increases With More Lines of Chemotherapy
  • Obesity's Impact on Uterine Cancer Risk Greater in Younger Age Groups
  • Oral Roflumilast Effective in the Treatment of Plaque Psoriasis
  • Phase III Trials 'Hit a Home Run' in Advanced Endometrial Cancer
  • Cannabis Use Common in Post-Surgery Patients on Opioid Tapering
  • Most Popular

  • Past Week

    • The untold struggles patients face with resident doctors

      Denise Reich | Conditions
    • What is driving physicians to the edge of despair?

      Edward T. Creagan, MD | Physician
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician
    • From clocking in to clocking out: the transition to retirement

      Debbie Moore-Black, RN | Conditions
    • From license to loneliness: the dilemma of retired physicians

      Richard Plotzker, MD | Physician
  • Past 6 Months

    • The real cause of America’s opioid crisis: Doctors are not to blame

      Richard A. Lawhern, PhD | Meds
    • Nobody wants this job. Should physicians stick around?

      Katie Klingberg, MD | Physician
    • The vital importance of climate change education in medical schools

      Helen Kim, MD | Policy
    • The fight for reproductive health: Why medication abortion matters

      Catherine Hennessey, MD | Physician
    • Resetting the doctor-patient relationship: Navigating the challenges of modern primary care

      Jeffrey H. Millstein, MD | Physician
    • It’s time for C-suite to contract directly with physicians for part-time work

      Aaron Morgenstein, MD & Corinne Sundar Rao, MD | Physician
  • Recent Posts

    • From license to loneliness: the dilemma of retired physicians

      Richard Plotzker, MD | Physician
    • Tackling the health care crisis with artificial intelligence: Combating physician and nursing shortages in the United States

      Harvey Castro, MD, MBA | Tech
    • From hope to heartbreak: a story of loss in the ICU

      Ton La, Jr., MD, JD | Conditions
    • Unlearning our habits: a journey from intelligence to wisdom

      Brian Sayers, MD | Physician
    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today iMedicalApps
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Can Safeway lead the way in controlling health costs?
12 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...