National Prevention Summit
US Department of Health and Human Services
Washington, D.C. October 26, 2006
Roger C. Merrill, M.D.
Chief Medical Officer

(image: Perdue Chicken logo)

1. Eliminate lifestyle risk factors
2. Systematically manage controllable disease
3. Establish an 'Environment of Health'

• HIP was designed to:
• Measure the health status of our population (something few others have done)
• Intervene in those high-target health areas that represent high-dollar expenditures
• Attack the cost side of the health equation by reducing demand for expensive services for complicated disease consequences
• Use the QIP (Quality Improvement Process) model to improve health

• Health Risk appraisal was administered; it includes 19 questions relating to diet, exercise, screening testing, health habits, etc.
• 5 biometric measurements were obtained: BP, height/weight, and blood for cholesterol panel, fasting blood sugar, and cotinine

• These data points are entered into a proprietary database which produces…

1. A "Personal Plan for Health" based on the individual's actual (not assumed) health risks
2. Aggregated data by plant or Company on health risks, number and % of undiagnosed and uncontrolled risks, such as blood pressure, diabetes, and others

(image: Personal Scorecard)

• 2,240 folks at 6 geographic locations included in the pilot
• Up to 85% of plant associates participated
• All had Health Risk Appraisal with biometrics
• Half ("A" Plants) had regular intensive nursing intervention on controllable diseases/risk factors throughout the period

• Note that the "control" plants - those without intensive nursing intervention – had programs similar to the best companies in the US: Health risk appraisals, personal explanation of risk factors, and suggested lifestyle changes

Anticipated Results:

• We agreed in advance that a 5-10% improvement in measured risk status in the 5 HIP focus areas [Blood Pressure, Cholesterol, Exercise, Tobacco, Weight] would be our success threshold
• These 5 areas are causative in >50% of Medical Plan expenditures at Perdue

Actual Results:

• A. The "control" plants (designated "HIP Pilot B") showed a 2% decrease in unhealthy risk scores
• B. "A" plants demonstrated a 25% reduction in unhealthy risks

Pilot Location	Scored Focus	%bad Ph1	%bad Ph2	%improvement
A Plants	Tobacco	23%	21%	9%
B Plants	Tobacco	32%	30%	6%
A Plants	BP	10%	3%	70%
B Plants	BP	14%	15%	-6%
A Plants	Cholesterol	10%	8%	20%
B Plants	Cholesterol	13%	11%	15%
A Plants	Exercise	70%	41%	42%
B Plants	Exercise	67%	63%	6%
A Plants	Weight	53%	49%	8%
B Plants	Weight	60%	57%	5%

(image: "It's HIP to be fit" logo)

With the results of the pilot in hand, the program was extended to 12 plants the next year, and to the entire Company in the current year

Results:

• Our 4-year inflation rate is (–3%) per year
• Cost per employee is ½ the national average ($3500 vs. $7400…)

(image: bar graph titled "Annual Medical Plan Cost to Perdue")

(image: bar graph titled "Annual Net Medical Plan Cost per Covered Associate")

• We have demonstrated that we can substantially improve the health of a blue collar working population in the clinical areas that have the most long-term consequence
• These improvements directly impact direct and indirect cost and misery of ill health

National Prevention Summit
US Department of Health and Human Services
Washington, D.C. October 26, 2006
Roger C. Merrill, M.D.
Chief Medical Officer

(image: Perdue Chicken logo)