Medibank Managing Director speaks at Amercian Chamber of Commerce

1

The American Chamber of Commerce in Australia

Business Briefing

George SavvidesManaging Director, Medibank

Friday 5 September 2014

1975

1980 1985 1990 1995 2000 2005 2010 2014

1976: Established by the Australian Government as a not-for-profit private

health insurer

1990: Merges with Health Australia

1998: Incorporated with the Commonwealth as

its sole shareholder

2006-2007: •Launches Diversified Insurances (travel, pet and life insurance products)

•The Medibank Private Sale Act 2006 (Cth) passes

2009:•Acquires ahm•Merges with Health Services Australia

•Converts to for-profit entity

2010:McKesson and Carepoint acquired

2011-2013: •Health Solutions formed•ADF Health Services contract secured

•Medibank and ahm health funds merge

•Repositioned ahm brand

2014:•New head office•Reorganisation of Complementary Services

A leading health insurer for nearly 40 years

OBJECTIVES

3

Medibank on the inside

Reduce the burden on the public system

To provide quicker access

To provide financial coverage

To provide better quality healthcare

experiences

We know what our members want …assurance for …

Quicker access

Financial coverage

Better quality healthcare

Value

Simplicity

Flexibility

Relevance

But it can’t be at any cost …

OBJECTIVES

6

Healthcare demand & costs are growing

Expenses on health and aged care are expected to exceed revenue by

2050.

AUS HEALTHCARE COSTS AS % OF GDP COST OF A C-SECTION

COST DRIVERS - 2009

OUT OF POCKET COSTS COMPARISON

HOSPITAL SPENDING PER DISCHARGE

1960

Actual3.8%

2009

Actual9%

2045

Projected20%

$1.875T cost of chronic care to the industry

AUSTRALIA’S AGING POPULATION - % OVER 65

2009

2050

13%

11%

Hip replacement cost in Australia – 45%

cheaper in Germany,30% cheaper in France and Canada.

of Australianbankruptcies in

2009 were health or health insurance

related (3153 people)

Australia has the 3rd highest cost

of generic drugs –40% more than

the UK.

CAN AUS FRA NZ GER

$14,896 $9,531 $8,049 $7,856 $5,192

.75 of every dollar spent

$

$$

25 - 28%

$7082 $7449$5820$3732$4820

AUS CAN GER FRA USA

$15,198

FRA $291 UK $341 NZ $399

GER $552 OECD $559 AUS $627

Some interesting health cost facts …

Medibank outlook of Australian health expenditure

Medibank forecast of health expenditure to 2025


Medibank forecast of Australian health expenditure




Medibank outlook on Australian health expenditure

Source: MPL data

Consume 35% of all hospital and medical

expenditure

70% of this group have underlying chronic disease

Chronic disease is now more prevalent than ever before

2% of Medibank members

My needs are forever changing, which presents a challenge when it comes to managing my condition

Are we really looking after Christine?

A system of “random care”

Long Term Supply Side Options

Many insurers are focused hereMedibank’s focus

17

It’s important we make a difference

Ave # of GP Encounters by Location (2004)

Source: Locality Matters, the influence of Geography on General Practice Activity 1998-2004

Ave. $ per Hospital Separation by Remoteness (2008)

Source: AIHW National Public Hospitals Establishment Database, 2005

3,651.6 3,887.5 3,965.1 4,328.6 4,422.3

MajorCities

InnerRegional

OuterRegional

Remote VeryRemote

5.54.5 4.2

3.6

2.2

MajorCities

InnerRegional

OuterRegional

Remote NotstatedVery remote

Expenditure Per Person By Service & Region (2008)

Source: Australia’s Health 2010

1,311

753312

1,428

661346

1,468

576318

1,723

409 243

Admitted Patient Medicare PBS PharmaceuticalsMajor City Inner Regional Outer Regional Remote and Very Remote

Primary care is critical …

Differentiated offering for Medibank members

Health AssessmentsPre and Post Discharge programs to mitigate unplanned readmissions

2

3

Integrated GP and virtual health coaching and disease management programs

4

Best practice, evidence based outpatient programs delivered through General Practice

5

6

Integrated Care program to address patients with complex conditions

1

Medibank’s Primary care objective

Patient Centered Medical Home

6

GP Access - added value for members & help improve their health

What it offers: •Same-day appointments •Fee-free consultations •After-hours GP home-visits •A range of one-off health assessments.

Key statistics: •26 medical centres in Brisbane, the Gold Coast, Ipswich and Cairns (Queensland)

•145 GPs•More than 30,000 consults •Research shows 35% of respondents more likely to stay with Medibank with these additional services

1. Continuity of care across

secondary and primary sectors

2. Continuity of patient information

and support

3. Co-ordination of providers“Care Team”

Medibank’s integrated care approach

Working with primary care to join the dots to deliver care coordination and improve health outcomes.

Improve experience of care

(patient surveys, provider feedback)

Improve population health

(clinical markers, biometrics, smoking)

Improve health system utilisation

(bed days, ED presentations, readmissions)

Reduce hospital admissions by 25%

CarePoint … What are the objectives?

A primary-care based clinical coordinator that helps manage the

patients’ holistic care needs

A call-centre based team that will help patients navigate appointments and logistics

Hospital discharge services that will ensure preventative measures are in place to mitigate readmission

Home-based services to

support patients managing their

chronic conditions and lives at home

Lifestyle counselling to improve self-

management, motivation and

adherence to plans

After hours support for questions and advice when required

GP-led supported by additional services

Focus on primary care as the central point

Pay for health outcomes rather

than activities

Co-ordinate care for high needs

patients

Motivate people to invest in a

healthy lifestyle

A healthcare system for the future

26

Thank you

Medibank Managing Director speaks at Amercian Chamber of Commerce

Healthcare

Transcript of Medibank Managing Director speaks at Amercian Chamber of Commerce