Walgreens Study Demonstrates Potential of New Stratified Approach Toward Achieving Triple Aim for Accountable Care

  Walgreens Study Demonstrates Potential of New Stratified Approach Toward
  Achieving Triple Aim for Accountable Care Organizations

    Article in April Edition of Health Affairs Shows Promise for Improving
                          Population Health Outcomes

Business Wire

DEERFIELD, Ill. -- April 10, 2013

A new Walgreens (NYSE:WAG) (Nasdaq:WAG) research article projects that by
taking an innovative approach to classifying patient populations, health
systems can more effectively prevent “triple fail” events – or outcomes which
fail to advance population health, reduce per capita health care costs and
improve individual patient experience . The article, titled “How Health
Systems Could Avert ‘Triple Fail’ Events That Are Harmful, Are Costly, And
Result in Poor Patient Satisfaction,” was published in the April edition of
Health Affairs.

“As pressures on the global health care system continue to mount, the triple
aim framework has increasingly been recognized as critical to improving
outcomes while lowering costs,” said Dr. Jeffrey Kang, Walgreens senior vice
president, health and wellness services and solutions. “At Walgreens, we have
seen firsthand through our work with physicians, health systems and our own
ACOs the importance of looking for innovative approaches to coordinating care
– such as the one analyzed in this article –to keep populations healthy.”

The research examines how classifying (or ‘stratifying’) patients according to
individual risk and expected response to an intervention can further the
“triple aim.” The triple aim framework, created by the Institute for
Healthcare Improvement (IHI), asks that health systems evaluate performance by
simultaneously pursuing three dimensions – improved patient experience of care
(including quality and satisfaction), improving population health and reducing
per capita cost of health care.

“Our findings suggest that if organizations expand their thinking around how
to classify patients in order to take a more predictive approach aimed at
preventing triple fail events before they occur, the potential benefits for
all stakeholders would be significant,” said Ian Duncan, FSA, MAAA, vice
president, clinical outcomes and analytics, Walgreens. “Ultimately, this
method could become a model for how to address population health and how to
help meet the needs of patients, health systems, payers and providers.”

The article examines two approaches that have been used to achieve the triple
aim — the population strategy, which seeks to lower risk across an entire
population; and the targeted strategy, which seeks to lower risk by
identifying and intervening with high-risk individuals.

The “stratified approach” is presented in the article as a third and novel
method, focused on identifying and prioritizing subpopulations according to
their risk of health encounter failures and their likelihood of benefiting
from preventive care. To identify at-risk subpopulations, health providers
must analyze medical claims, pharmacy claims, electronic health record
information and other administrative data to predict individuals’ risk of
different triple fail events.

Geraint Lewis, chief data officer of the NHS Commissioning Board and former
senior director of Walgreens clinical outcomes and analytics, will be
presenting the editorial findings at the Triple Aim Goes Global Health Affairs
event on Thursday, April 11 at the Barbara Jordan Conference Center in
Washington D.C.

About Walgreens

As the nation's largest drugstore chain with fiscal 2012 sales of $72 billion,
Walgreens (www.walgreens.com) vision is to become America’s first choice for
health and daily living. Each day, Walgreens provides more than 6 million
customers the most convenient, multichannel access to consumer goods and
services and trusted, cost-effective pharmacy, health and wellness services
and advice in communities across America. Walgreens scope of pharmacy services
includes retail, specialty, infusion, medical facility and mail service, along
with respiratory services. These services help improve health outcomes and
lower costs for payers including employers, managed care organizations, health
systems, pharmacy benefit managers and the public sector. The company operates
8,077 drugstores in all 50 states, the District of Columbia and Puerto Rico.
Take Care Health Systems is a Walgreens subsidiary that is the largest and
most comprehensive manager of worksite health and wellness centers and
in-store convenient care clinics, with more than 700 locations throughout the


Jim Cohn, (847) 315-2950
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