The costs of healthcare have been rising more than ten percent each year for several years. A substantial amount of the money invested in the healthcare 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 potentially-modifiable health risks.
• In an effort to optimize employee health, decrease avoidable healthcare utilization and enhance work execution, and in turn decreased healthcare costs and improve employee satisfaction and retention, many corporations are beginning, or are interested in beginning, Employee Wellness Programs for employees.
The advantages of worksite 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 primary findings include the following:
• Savings of $3.48 in reduced medical 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 program implementation.
• Lifestyle behavior change programs: $3 to $6 return on investment within 2 to 5 years.
• Self care, decision support programs: $2 to $3 ROI within a year.
• Disease management programs: $7 to $10 ROI within a year.
By offering health improvement programs, employers are not only providing an additional service for staff members, but they are also gaining financially. Furthermore, the impact 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 designing, launching and evaluating workplace programs. National Business Group on Health, 1 (1), 1-7.
