The costs of health care have been rising more than 10% each year for several years. A substantial amount of the money spent in the health care system treats costly diseases and diseases.
o 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 disease and promoting health.
o Potentially, 50% to 70% of all illnesses are avoidable as they’re associated with modifiable health risks.
o In an effort to optimize staff member health, reduce avoidable healthcare utilization and enhance work performance, and in turn lower healthcare costs and improve staff member satisfaction and retention, many corporations are developing, or are interested in developing, Health Promotion Programs for staff members.
The benefits of company wellness are well documented. More than 120 research repeatedly show themes such as improvements in health outcomes coupled with high ROI. Some major findings include the following -
o Savings of $3.48 in decreased healthcare costs per dollar invested.
o Savings of $5.82 in reduce rates of absenteeism costs per dollar invested.
o Return On Investment (ROI)s of at least $3 to $8 per dollar invested within five years of wellness program implementation.
o Lifestyle behavior change programs – $3 to $6 Return On Investment within 2 to 5 years.
o Self care, decision support health promotion programs – $2 to $3 Return On Investment (ROI) within a year.
o Illness management programs – $7 to $10 Return On Investment within a year.
By offering wellness programs, corporations are not only providing an additional service for workers, but they are also gaining financially. Moreover, the impact of a wellness program goes beyond reduced health care cost and Return On Investment (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 robust guide to designing, beginning and analyzing wellness programs. National Company Group on Health, 1 (1), 1-7.
Wellness Proposals