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
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

ADVERTISEMENT

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

  • U.S. health care leadership must prepare for policy-driven change

    Lee Scheinbart, MD
  • How locum tenens work helps physicians and APPs reclaim control

    Brian Sutter
  • Why Medicaid cuts should alarm every doctor

    Ilan Shapiro, MD
  • Why physician voices matter in the fight against anti-LGBTQ+ laws

    BJ Ferguson
  • The silent toll of ICE raids on U.S. patient care

    Carlin Lockwood
  • What Adam Smith would say about America’s for-profit health care

    M. Bennet Broner, PhD
  • Most Popular

  • Past Week

    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • How community paramedicine impacts Indigenous elders

      Noah Weinberg | Conditions
    • Why Canada is losing its skilled immigrant doctors

      Olumuyiwa Bamgbade, MD | Physician
    • How to speak the language of leadership to improve doctor wellness [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • Why tracking cognitive load could save doctors and patients

      Hiba Fatima Hamid | Education
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
    • What the world must learn from the life and death of Hind Rajab

      Saba Qaiser, RN | Conditions
    • How medical culture hides burnout in plain sight

      Marco Benítez | Conditions
  • Recent Posts

    • Why Canada is losing its skilled immigrant doctors

      Olumuyiwa Bamgbade, MD | Physician
    • Why doctors are reclaiming control from burnout culture

      Maureen Gibbons, MD | Physician
    • Would The Pitts’ Dr. Robby Robinavitch welcome a new colleague? Yes. Especially if their initials were AI.

      Gabe Jones, MBA | Tech
    • Why medicine must stop worshipping burnout and start valuing humanity

      Sarah White, APRN | Conditions
    • Why screening for diseases you might have can backfire

      Andy Lazris, MD and Alan Roth, DO | Physician
    • How organizational culture drives top talent away [PODCAST]

      The Podcast by KevinMD | Podcast

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

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • How community paramedicine impacts Indigenous elders

      Noah Weinberg | Conditions
    • Why Canada is losing its skilled immigrant doctors

      Olumuyiwa Bamgbade, MD | Physician
    • How to speak the language of leadership to improve doctor wellness [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • Why tracking cognitive load could save doctors and patients

      Hiba Fatima Hamid | Education
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
    • What the world must learn from the life and death of Hind Rajab

      Saba Qaiser, RN | Conditions
    • How medical culture hides burnout in plain sight

      Marco Benítez | Conditions
  • Recent Posts

    • Why Canada is losing its skilled immigrant doctors

      Olumuyiwa Bamgbade, MD | Physician
    • Why doctors are reclaiming control from burnout culture

      Maureen Gibbons, MD | Physician
    • Would The Pitts’ Dr. Robby Robinavitch welcome a new colleague? Yes. Especially if their initials were AI.

      Gabe Jones, MBA | Tech
    • Why medicine must stop worshipping burnout and start valuing humanity

      Sarah White, APRN | Conditions
    • Why screening for diseases you might have can backfire

      Andy Lazris, MD and Alan Roth, DO | Physician
    • How organizational culture drives top talent away [PODCAST]

      The Podcast by KevinMD | Podcast

MedPage Today Professional

An Everyday Health Property Medpage Today
  • 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...