The costs of healthcare have been rising more than 10% annually for several 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 illnesses are avoidable as they are associated with modifiable health risks.
• In an effort to optimize employee health, reduce avoidable health care utilization and enhance work performance, and in turn lower health care costs and improve employee satisfaction and retention, many companies are developing, or are interested in developing, Health Promotion Programs for workers.
The advantages of company wellness are well documented. More than 120 research repeatedly show themes like improvements in health outcomes coupled with high Return On Investment (ROI). Some major findings include the following –
• Savings of $3.48 in lowered health care costs per dollar invested.
• Savings of $5.82 in reduce absenteeism costs per dollar invested.
• ROIs of at least $3 to $8 per dollar invested within five years of wellness program implementation.
• Lifestyle behavior change programs – $3 to $6 ROI within 2 to 5 years.
• Self care, decision support health promotion programs – $2 to $3 Return On Investment (ROI) within a year.
• Disease management programs – $7 to $10 Return On Investment within a year.
By offering wellness programs, corporations are not only providing an additional service for staff members, but they are also gaining financially. Further, 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 extensive guide to designing, implementing and assessing wellness programs. National Corporation Group on Health, 1 (1), 1-7.
