Health and Wellness Programs : Benefits of Health Promotion Programs.
The costs of health care have been rising more than 10 percent annually for several years. A substantial amount of the money spent in the health care system treats costly illnesses and illnesses.
• 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.
• Potentially, 50 percent to 70 percent 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 organizations are developing, or are interested in developing, Wellness Programs for workforce.
The benefits of corporate health promotion are well documented. More than 120 research repeatedly show themes such as improvements in health outcomes coupled with high ROI. Some major findings include the following –
• Savings of $3.48 in lowered health care costs per dollar invested.
• Savings of $5.82 in decrease absenteeism costs per dollar invested.
• Return On Investments 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 Return On Investment within a year.
• Disease management programs – $7 to $10 Return On Investment (ROI) within a year.
By offering health improvement programs, businesss aren’t only providing an additional service for employees, but they’re also gaining financially. Further, the impact of a health improvement program goes beyond reduced healthcare cost and ROI.
A health betterment 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 investigating worksite programs. National Corporation Group on Health, 1 (1), 1-7.