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Healthcare - Carrot or Stick?
August 10, 2007

I'm angry today.

Daniel Evans, the CEO of Clarian Health Partners, a Healthcare organization based in Indiana has decided that because his staff wellness programs are not working that he's going to start penalizing employees for their obesity, high blood pressure, high cholesterol and smoking habits.

Just who does this man think he is?

At first pass, and with the weight of those monthly premiums dragging you down you might think "Well, why not?". Apparently someone at BusinessWeek said "What's not to love?"

Here's what's not to love about it:

1. Employers are perfectly entitled to stipulate rules and regulations and issue rewards and punishment for work and performance behavior. They are not entitled to tell people how to live or pass judgment on their personal lifestyles. This is a potential avalanche of lawsuits waiting to happen.

2. Mr Evans says only that the serious medical confidentiality issues arising from such a policy are "thoroughly solved" but offers no explanation of how. He has to do better than that.

3. How can anyone seriously suggest that this is justified when the only justification Mr Evans is offering is that healthcare costs are rising?  This is a much bigger political and social issue. His response is completely misdirected, dictatorial and downright dangerous.

4. It's a Healthcare organization! All the evidence (as described in this clip of Mr Evans being interviewed on The Today Show) points to motivational, supportive and "carrot" based programs being highly effective in organizations like IBM, Time Warner, News Corporation and Pitney Bowes. If people are not signing up and participating  shouldn't he be asking himself why? He has offered no evidence of improvements and enhancements to the Clarian wellness programs to improve participation. The Clarian website, in true PR spin mode has anounced it's policy change proudly, proclaiming it "innovative".

This will all backfire and we should all be watching this very carefully. You may be wondering why this is important to small and medium sized businesses like ours. But those of us that provide healthcare to our employees are facing much the same issues as Mr Evans - the burden we bear can be even greater, simply because we don't all have the resources and steady cashflow that is built into the business model of healthcare organizations ("Late with your premium? Sorry, it's cancelled!"). We could follow his lead if we chose to. I caution against it.

If nothing else, who would want to work for a company like this?

Posted by Alan Ibbotson on August 10, 2007 | Comments (2)