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

ADVERTISEMENT

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

  • 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
  • The lab behind the lens: Equity begins with diagnosis

    Michael Misialek, MD
  • Conflicts of interest are eroding trust in U.S. health agencies

    Martha Rosenberg
  • When America sneezes, the world catches a cold: Trump’s freeze on HIV/AIDS funding

    Koketso Masenya
  • A surgeon’s late-night crisis reveals the cost confusion in health care

    Christine Ward, MD
  • Most Popular

  • Past Week

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

      Carlin Lockwood | Policy
    • Why recovery after illness demands dignity, not suspicion

      Trisza Leann Ray, DO | Physician
    • Addressing the physician shortage: How AI can help, not replace

      Amelia Mercado | Tech
    • Why medical students are trading empathy for publications

      Vijay Rajput, MD | Education
    • Why does rifaximin cost 95 percent more in the U.S. than in Asia?

      Jai Kumar, MD, Brian Nohomovich, DO, PhD and Leonid Shamban, DO | Meds
    • How conflicts of interest are eroding trust in U.S. health agencies [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • What’s driving medical students away from primary care?

      ​​Vineeth Amba, MPH, Archita Goyal, and Wayne Altman, MD | Education
    • Make cognitive testing as routine as a blood pressure check

      Joshua Baker and James Jackson, PsyD | Conditions
    • The hidden bias in how we treat chronic pain

      Richard A. Lawhern, PhD | Meds
    • A faster path to becoming a doctor is possible—here’s how

      Ankit Jain | Education
    • Residency as rehearsal: the new pediatric hospitalist fellowship requirement scam

      Anonymous | Physician
    • The broken health care system doesn’t have to break you

      Jessie Mahoney, MD | Physician
  • Recent Posts

    • How conflicts of interest are eroding trust in U.S. health agencies [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why young doctors in South Korea feel broken before they even begin

      Anonymous | Education
    • Measles is back: Why vaccination is more vital than ever

      American College of Physicians | Conditions
    • When errors of nature are treated as medical negligence

      Howard Smith, MD | Physician
    • Physician job change: Navigating your 457 plan and avoiding tax traps [PODCAST]

      The Podcast by KevinMD | Podcast
    • The hidden chains holding doctors back

      Neil Baum, 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

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

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

      Carlin Lockwood | Policy
    • Why recovery after illness demands dignity, not suspicion

      Trisza Leann Ray, DO | Physician
    • Addressing the physician shortage: How AI can help, not replace

      Amelia Mercado | Tech
    • Why medical students are trading empathy for publications

      Vijay Rajput, MD | Education
    • Why does rifaximin cost 95 percent more in the U.S. than in Asia?

      Jai Kumar, MD, Brian Nohomovich, DO, PhD and Leonid Shamban, DO | Meds
    • How conflicts of interest are eroding trust in U.S. health agencies [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • What’s driving medical students away from primary care?

      ​​Vineeth Amba, MPH, Archita Goyal, and Wayne Altman, MD | Education
    • Make cognitive testing as routine as a blood pressure check

      Joshua Baker and James Jackson, PsyD | Conditions
    • The hidden bias in how we treat chronic pain

      Richard A. Lawhern, PhD | Meds
    • A faster path to becoming a doctor is possible—here’s how

      Ankit Jain | Education
    • Residency as rehearsal: the new pediatric hospitalist fellowship requirement scam

      Anonymous | Physician
    • The broken health care system doesn’t have to break you

      Jessie Mahoney, MD | Physician
  • Recent Posts

    • How conflicts of interest are eroding trust in U.S. health agencies [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why young doctors in South Korea feel broken before they even begin

      Anonymous | Education
    • Measles is back: Why vaccination is more vital than ever

      American College of Physicians | Conditions
    • When errors of nature are treated as medical negligence

      Howard Smith, MD | Physician
    • Physician job change: Navigating your 457 plan and avoiding tax traps [PODCAST]

      The Podcast by KevinMD | Podcast
    • The hidden chains holding doctors back

      Neil Baum, MD | Physician

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...