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Creating Shared Value in Health Care

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<strong>Shared</strong> <strong>Value</strong> <strong>in</strong> the Local Bus<strong>in</strong>ess Environment<br />

Kaiser Permanente’s Total <strong>Health</strong> Approach<br />

• ​Kaiser Permanente is the nation’s largest non-profit <strong>in</strong>tegrated health system<br />

• Kaiser serves more than 10 million members, operates 38 hospitals and more than<br />

600 medical offices across the nation<br />

• Kaiser is advanc<strong>in</strong>g the concept of “total health,” an <strong>in</strong>novative framework to address<br />

the social, economic and environmental factors that contribute to poor health<br />

outcomes, shortened lives and higher costs. It <strong>in</strong>cludes:<br />

– ​Workforce wellness <strong>in</strong>itiatives for its employees and customers<br />

– Increas<strong>in</strong>g access to healthy foods and physical activity across thousands of<br />

schools<br />

– ​Facilitat<strong>in</strong>g educational atta<strong>in</strong>ment and entrance to the health professions,<br />

especially for students from disadvantaged backgrounds<br />

– ​Reduc<strong>in</strong>g its carbon footpr<strong>in</strong>t by spend<strong>in</strong>g almost $800 million <strong>in</strong> green energy<br />

projects<br />

– ​Supplier diversity, purchas<strong>in</strong>g more than $1.5 billion from women and m<strong>in</strong>orityowned<br />

firms <strong>in</strong> 2014 alone<br />

– Invest<strong>in</strong>g approximately $2 billion <strong>in</strong> community benefit programs that provide for<br />

community health / safety net partnerships and medical f<strong>in</strong>ancial assistance for<br />

low-<strong>in</strong>come people<br />

20160325—HBS Build<strong>in</strong>g a Culture of <strong>Health</strong> Conference —CSV and <strong>Health</strong> <strong>Care</strong> Presentation—FINAL<br />

18<br />

Copyright 2016 © Professor Michael E. Porter

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