August 11th, 2009 by Health Fair, under Health Fair Ideas. No Comments
The costs of medical care have been rising more than ten percent each year for several years. A substantial amount of the money spent in the medical care 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 health care services, while about 5 percent is allocated to preventing disease and promoting health.
• Potentially, 50 percent to 70 percent of all diseases are avoidable as they are associated with modifiable health risks.
• In an effort to optimize employee health, reduce avoidable healthcare utilization and enhance work performance, and in turn reduced healthcare costs and better employee satisfaction and retention, many corporations are beginning, or are interested in beginning, Company Wellness Programs for workers.
The benefits of workplace wellness are well documented. More than 120 research studies 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 reduced health care expenditures per dollar invested.
• Savings of $5.82 in cut absenteeism expenditures 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 return on investment within a year.
• Disease management programs: $7 to $10 return on investment within a year.
By offering health improvement programs, businesses are not only offering an additional service for employees, but they are also gaining financially. Furthermore, the effect of a health improvement program goes beyond decreased medical cost and return on investment. A health improvement program can affect productiveness, absenteeism, morale, recruitment success, turnover, and medical expenditures.
• Source: Rees, C., and Finch, R. (2004). Health Improvement: A comprehensive guide to creating, launching and evaluating workplace programs. National Business Group on Health, 1 (1), 1-7.