The costs of healthcare have been rising more than 10% each year for a few years. A substantial amount of the money spent in the healthcare system treats costly illnesses and illnesses.
• Approximately 95% of the $1.4 trillion that we spend as a nation on health goes to direct medical services, while about 5% is allocated to preventing illness and promoting health.
• Potentially, 50% to 70% of all diseases are preventable as they are associated with modifiable health risks.
• In an effort to optimize worker health, reduce avoidable health care utilization and enhance work performance, and in turn lower health care costs and improve worker satisfaction and retention, many corporations are developing, or are interested in developing, Health Promotion Programs for employees.
The benefits of employee health promotion are well documented. More than 120 research repeatedly show themes such as improvements in health outcomes coupled with high returns on investment (ROI). Some major findings include the following –
• Savings of $3.48 in decreased healthcare costs per dollar invested.
• Savings of $5.82 in decrease rates of absenteeism costs per dollar invested.
• ROIs of at least $3 to $8 per dollar invested within five years of program implementation.
• Lifestyle behavior change programs – $3 to $6 ROI within 2 to 5 years.
• Self care, decision support programs – $2 to $3 ROI within a year.
• Disease management programs – $7 to $10 ROI within a year.
By offering health betterment programs, corporations are not only providing an additional service for workers, but they are also gaining financially. Further, the impact of a health betterment program goes beyond lowered healthcare cost and ROI.
A health improvement program can affect productivity, absenteeism, morale, recruitment success, turnover, and medical care costs.
* Source – Rees, C., and Finch, R. (2004). Health Improvement – A robust guide to designing, implementing and reviewing worksite programs. National Corporation Group on Health, 1 (1), 1-7.
Corporate Wellness Companies