Posted by admin | Posted in Health Program Ideas, Screening and Intervention Programs, Wellness Program Incentives | Posted on 06-05-2009
The expenditures of healthcare have been rising more than 10 percent each year for several years. A substantial amount of the money invested in the healthcare system treats costly illnesses and diseases.
• Approximately 95 percent of the $1.4 trillion that we spend as a nation on health goes to direct healthcare services, while about 5 percent is allocated to preventing disease and promoting health.
• Potentially, 50 percent to 70 percent of all diseases are avoidable as they are associated with potentially-modifiable health risks.
• In an effort to optimize employee health, reduce preventable health care utilization and enhance work performance, and in turn lower health care costs and improve employee satisfaction and retention, many corporations are planning, or are interested in planning, Workplace Wellness Programs for employees.
The benefits of workplace wellness are well documented. Greater than 120 research studies repeatedly show themes such as improvements in health outcomes coupled with high returns on investment (ROI). Some primary findings include the following:
• Savings of $3.48 in reduced medical care expenditures per dollar invested.
• Savings of $5.82 in lower absenteeism expenditures per dollar invested.
• ROIs of at least $3 to $8 per dollar invested within five years of program implementation.
• Lifestyle behavior modification programs: $3 to $6 ROI within 2 to 5 years.
• Self care, decision reinforcement programs: $2 to $3 ROI within a year.
• Disease Management (DM) programs: $7 to $10 return on investment within a year.
By offering health improvement programs, businesses are not only providing an additional service for workers, but they are also gaining fiscally. Furthermore, the impact of a health improvement program goes beyond decreased health care cost and ROI. A health improvement program can affect work rate, absenteeism, morale, recruitment success, turnover, and health care expenditures.
• Source: Rees, C., and Finch, R. (2004). Health Improvement: A comprehensive guide to designing, implementing and evaluating worksite programs. National Business Group on Health, 1 (1), 1-7.