Advantages of Wellness Programs.

The costs of healthcare have been rising more than 10 percent each year for a few years. A substantial amount of the money spent in the healthcare system treats costly diseases and diseases.

• 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 illness 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 worker health, reduce avoidable healthcare utilization and enhance work performance, and in turn lower healthcare costs and improve worker satisfaction and retention, many companies are developing, or are interested in developing, Wellness Programs for workers.

The advantages of corporate wellness are well documented. More than 120 research repeatedly show themes like improvements in health outcomes coupled with high returns on investment (ROI). Some major findings include the following –

• Savings of $3.48 in decreased 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 change programs –  $3 to $6 ROI within 2 to 5 years.

• Self care, decision support programs –  $2 to $3 ROI within a year.

• Illness management programs –  $7 to $10 ROI within a year.

By offering health improvement programs, employers are not only providing an additional service for workers, but they’re also gaining financially. Moreover, the impact of a health improvement program goes beyond reduced health care cost and ROI.

A health improvement program can affect productivity, absenteeism, morale, recruitment success, turnover, and medical care costs.

* Source –  Rees, C., and Finch, R. (2004). Health Improvement –  A robust guide to designing, beginning and evaluating  worksite programs. National Business Group on Health, 1 (1), 1-7.