Posted by Company Wellness | Posted in Company Wellness, Wellness Programs | Posted on 21-08-2010
The costs of health care have been rising more than 10 percent yearly for a few years. A substantial amount of the money spent in the health care system treats costly diseases and diseases.
• Approximately 95 percent of the $1.4 trillion that we spend as a nation on health goes to direct medical services, while about 5 percent is allocated to preventing disease and promoting health.
• Potentially, 50 percent to 70 percent of all diseases are preventable as they’re associated with modifiable health risks.
• In an effort to optimize staff member health, reduce avoidable health care utilization and enhance work performance, and in turn lower health care costs and improve staff member satisfaction and retention, many companies are developing, or are interested in developing, Health Promotion Programs for workforce.
The benefits of employee health promotion are well documented. Greater than 120 research repeatedly show themes such as improvements in health outcomes coupled with high Return On Investment. Some major findings include the following –
• Savings of $3.48 in decreased health care costs per dollar invested.
• Savings of $5.82 in reduce absenteeism costs per dollar invested.
• Return On Investment (ROI)s of at least $3 to $8 per dollar invested within five years of wellness program implementation.
• Lifestyle behavior change programs – $3 to $6 Return On Investment (ROI) within 2 to 5 years.
• Self care, decision support health promotion programs – $2 to $3 ROI within a year.
• Illness management programs – $7 to $10 Return On Investment (ROI) within a year.
By offering wellness programs, companys aren’t only providing an additional service for workforce, but they are also gaining financially. Further, the impact of a wellness program goes beyond decreased health care cost and ROI.
A health promotion program can affect productivity, absenteeism, morale, recruitment success, turnover, and medical care costs.
* Source – Rees, C., and Finch, R. (2004). Health Improvement – A extensive guide to designing, beginning and analyzing wellness programs. National Corporation Group on Health, 1 (1), 1-7.