vnab pricing recommendation
DESCRIPTION
This was the final deliverable for my B2B class. I was responsible for slides 9~13, along with the appendix which I felt would answer questions about where our pricing equation was being rooted from. Unfortunately, I have not personally followed-up on the implementation of our team\'s recommendations.TRANSCRIPT
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Visiting Nurses Association of Boston Wellness Program
Melissa HuiLulu Li
Victor PanPhil Rapp
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Founded in 1886, largest VNA in the country. The Wellness Program is a non-profit enterprise with 1 full time employee
Provides health related programs and screenings aimed to help clients keep their employees healthy
Corporate Wellness
Community Outreach
VNAB Background
Profits fund free community clinics
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Corporate Wellness:
• Health Screening, Immunization and Educational Presentations
• Over 300 clients• 97% of revenue from Flu
Clinics• New screening technologies
for blood pressure, glucose and cholesterol
Community Outreach:
• Free clinics for the community; no revenue
• 71% volume of spending is on Community Outreach
• Is funded by profits from Corporate Wellness
Current State
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Health Screenings Blood Pressure
$75/hr. 2 hr min Blood Glucose
$125/hr + $5/person. 2 hr min.
Cholesterol $125/hr + $5/person. 2 hr min.
Body Mass Index (BMI) $75/hr. 2 hr min
Tuberculosis Testing (TB) $125/hr + $5/person.
Hand Washing Demonstrations
Educational Presentations $500/hr Work/Life Issues Ergonomics Seasonal Wellness Nutrition Alternative Healing Techniques
Immunizations Influenza (Flu)
$25/shot. $625 min. H1N1 Pneumococcal Hepatitis A Hepatitis B Shingles Measles/Mumps/Rubella (MMR) Meningococcal
Current Services Provided
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Current Marketing Strategy
Initiatives
Direct Mail to managers
Monthly E-Newsletter
Clinic Sign Ups Email Blast
Tele-market to past clients
Thank you cards
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Industry Trends•MA
insurance companies required to give complementary preventative care
Health care bill 2015
•Convenient to individuals and cost effective for employers
•CVS, Walgreens, Rite Aid
Minute Clinics
•Purchase in bulk and offer a wider array of services
Large Insurance Companies:
•Not re-booking health services
Tighter Budgets:
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Customers not aware of value offered by VNAB
Problem
VNAB Success
Personnel and Incentives
Communicate ValueIdentify Value
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RecommendationsIdentify Value
Communicating ValuePersonnel and Incentives
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Identifying Value
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Cost Savings: Medical Insurance
On average, $3.27-4.50 savings on medical insurance per dollar spent on wellness
The lower the risk, the lower the insurance premium
Shifting down the risk groups decreases overall insurance cost
94% of companies with wellness programs reported medical cost savings
Identifying Value*supported by exhibit
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Graph from VNAB Internal Report
Identifying Value
Wellness Programs Reduce Employee Health Risks
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Cost Savings: Prevent Absenteeism and Increase Productivity
$2.73 savings from absenteeism per dollar spent on wellness
Healthier employees are more productive than sick ones
Retention = Lower the cost to replace an absent worker
Identifying Value
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Cost Savings: Employee Time Time is money. Save time. Save money. Save time for the commute to hospitals, testing,
and waiting for test results. Have a comprehensive set of results from one
reliable source. Minimum work disruption
Identifying Value
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Communicating Value
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Problem: Extensive variety of customers
◦ Heterogeneous customers Blue Man Group, Bank of America, Harpoon Brewery
◦ No customer criteria
Solution:
Identify Target Market
Now: Customer fit VNAB products
Ideal: Products fit customers
CommunicatingValue
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Customized Product Offerings
CommunicatingValue
Bundle
Screenings Educational Seminars Immunizations
Current State – Products sold separately
Ideal State – Bundle and customize packages
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Problem: Website: Informative,
but not sales oriented
Pamphlet not congruent with website information
Lack of advertisements targeting buying center
Solution: Need aligned marketing
strategy
Targeted Promotions
CommunicatingValue
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Personnel & Incentives
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Poor sales performance
Volatile sales distribution
Diminished Awareness of ValueValue Proposition of complete product suite un-communicated
Ineffective Marketing Initiatives
Direct mail, Telemarketing Part time nurses distributing pamphlets
Problem: No dedicated sales staff
PersonnelAnd Incentives
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$370,784
$11,286
Flu ClinicsOther Coporate Wellness Revenue
Sales Distribution
PersonnelAnd Incentives
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Promote entire product suite
Spread sales beyond flu shot packages
Competitive frame of reference improved vs. Insurance companies
Solution:Create Full time Sales-force
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PersonnelAnd Incentives
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QUESTIONS?
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Exhibits and Appendices
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Ex 1: MetLife Case Study
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Ex 2: Health Affairs
Risk Categorization and Distribution of Employees
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Ex 3:Effectiveness of Wellness Programs for Various Health Conditions
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Bibliography Albert, Steven M., and Richard Schulz. Working Caregivers and Employer Health Care Costs.
Rep. MetLife Mature Market Institute, Feb. 2010. Web. 24 Apr. 2011. <http://www.metlife.com/assets/cao/mmi/publications/studies/2010/mmi-working-caregivers-employers-health-care-costs.pdf>.
Baicker, Katherine, David Cutler, and Zirui Song. "Workplace Wellness Programs Can Generate Savings." Health Affairs 29.2 (2010): 1-8. Kibble & Prentice. The People-to-People Health Foundation, Inc., Feb. 2010. Web. 24 Apr. 2011. <http://www.kpcom.com/newsletters/documents/Workplace%20Wellness%20Programs%20can%20generate%20savings.pdf>.
Loeppke, Ronald, Dee W. Edington, and Sami Be'g. "Impact of the Prevention Plan on Employee Health Risk Reduction." Population Health Management 14.5 (2010): 275-83. US Preventative Medicine. 2010. Web. 24 Apr. 2011. <http://www.uspreventivemedicine.com/Files/PDFs/In-Line/Research-Study-Population-Health-Management-journa.aspx>.
"How Does Health Care Reform Affect You?" Mass.Gov. Executive Office of Health and Human Services, 2011. Web. 23 Apr. 2011. <http://www.mass.gov/?pageID=eohhs2modulechunk>.
"CVS Minute Clinic." 2011. Web. 23 Apr. 2011 http://minuteclinic.com "How Will the 300 Minute Clinics in 2007 Impact Current Medical Practice?" OnThePharm.
Web. 26 Apr. 2011. <http://onthepharm.net/2007/02/minute-clinic-retail-medical-practice.html>. Shimp, Bradford |. "Small Business Healthcare: Don’t Give Up Your Plan Just Yet." Blog | All
Business Answers. 23 Mar. 2010. Web. 26 Apr. 2011. <http://allbizanswers.com/small-business-healthcare-dont-give-up-your-plan-just-yet/>.
VNAB. Visiting Nurses Association of Boston 2009 Wellness Overview. Internal Report. 2011. Print.
VNAB. Visiting Nurses Association of Boston 2011 Wellness Plan. Internal Report. 2011. Print.