The costs of health care have been rising more than 10 percent yearly for several years. A substantial amount of the money spent in the health care system treats costly diseases and diseases.
o 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.
o Potentially, 50 percent to 70 percent of all diseases are avoidable as they’re associated with modifiable health risks.
o In an effort to optimize staff member health, reduce preventable 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, Wellness Programs for workforce.
The advantages of company wellness are well documented. More than 120 scientific research studies repeatedly show themes like improvements in health outcomes coupled with high ROI. Some major findings include the following –
o Savings of $3.48 in decreased health care costs per dollar invested.
o Savings of $5.82 in lower absenteeism costs per dollar invested.
o ROIs of at least $3 to $8 per dollar invested within five years of wellness program implementation.
o Lifestyle behavior modification 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 within a year.
o Disease management programs – $7 to $10 Return On Investment within a year.
By offering health promotion programs, companys are not only providing an additional service for employees, but they are also gaining financially. Furthermore, the impact of a health promotion program goes beyond lowered healthcare cost and Return On Investment.
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 comprehensive guide to designing, starting and assessing wellness programs. National Corporation Group on Health, 1 (1), 1-7.