Corporate Wellness Blog : Benefits of Workplace Health Promotion Programs*
Posted by Corporate Wellness | Posted in Corporate Wellness, Health Program Ideas, Health and Wellness | Posted on 01-04-2009
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The costs of medical have been rising more than 10 percent each year for several years. A substantial amount of the money spent in the medical system treats costly illnesses and diseases.
• Approximately 95 percent of the $1.4 trillion that we spend as a nation on health goes to direct healthcare 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 are associated with modifiable health risks.
• In an effort to optimize employee health, cut preventable medical utilization and enhance work execution, and in turn decreased medical costs and better employee satisfaction and retention, many corporations are planning, or are interested in planning, Employee Health Promotion Programs for workers.
The advantages of worksite wellness are well documented. Greater than 120 research studies repeatedly show themes such as improvements in health outcomes coupled with high returns on investment (ROI). Some primary findings include the following:
• Savings of $3.48 in reduced health care costs per dollar invested.
• Savings of $5.82 in decrease absenteeism costs per dollar invested.
• ROIs of at least $3 to $8 per dollar invested within five years of program implementation.
• Lifestyle behavior modification programs: $3 to $6 ROI within 2 to 5 years.
• Self care, decision reinforcement programs: $2 to $3 return on investment within a year.
• Disease management programs: $7 to $10 return on investment within a year.
By offering health improvement programs, corporations are not only offering an additional service for workers, but they are also gaining fiscally. Furthermore, the effect of a health improvement program goes beyond lowered medical care cost and ROI. A health improvement program can affect work rate, absenteeism, morale, recruitment success, turnover, and medical care costs.
• Source: Rees, C., and Finch, R. (2004). Health Improvement: A comprehensive guide to designing, implementing and evaluating worksite programs. National Business Group on Health, 1 (1), 1-7.