Physmark introduces HealthKeys for preventive care programs

Feb 5 2010

Physmark has announced HealthKeys, a software system and service based on the company's patent-pending cost model that measures the effectiveness and cost savings of preventive care programs.

"HealthKeys gives corporate executives and health plans actionable intelligence showing which wellness programs are working and which need improvement," said Dr. Jacob Kuriyan, President and CEO of Physmark, Inc.

Physmark's cost model uses a new set of metrics to calculate trends in the incidence, prevalence and cost of chronic conditions, then allows employers and health plans to set new performance indicators for their wellness programs. It is available as a standalone product or service.

Integrating Cost & Care Models

Kuriyan said that healthcare has used cost models for underwriting insurance and care models to deliver the best of care – with little or no overlap.  "Clinicians know that preventive care works – they don't need any proof of savings. CFOs and human resource managers, on the other hand, know their cost but can't prove any savings. We bring the two together by integrating cost with chronic care."

If You Can't Measure It, You Can't Manage It – Setting Benchmarks

With the new metrics defined by Physmark's cost model, real benchmarks can be established for preventive care programs.

Kuriyan explained that managed care plans traditionally used optimum values for two business ratios that measured hospital utilization: "Bed Days/1000" and "Hospital Admits/1000."   Once these benchmarks were available, health plans mimicked successful programs and were easily able to lower hospital utilization.

"Our new cost model defines two new business ratios for preventive care programs," said Kuriyan.  "By studying efficiently run organizations we can derive optimum values for the new ratios and then health plans and employers will have a gold standard to emulate."

In a recent report issued by PriceWaterhouseCoopers entitled "What Employers Want From Health Insurers in 2010" employers explicitly say they are looking for better information and more value from their health insurers.

"Providing employers with two numbers to measure performance and the cost impact of a care program makes great strides in this direction," said Kuriyan.