Advantages of Wellness Programs.

The costs of healthcare have been rising more than 10 percent annually for several years. A substantial amount of the money spent in the healthcare system treats expensive diseases and diseases.

• Approximately 95% of the $1.4 trillion that we spend as a nation on health goes to direct medical services, while about 5% is allocated to preventing disease and promoting health.

• Potentially, 50% to 70% of all diseases are avoidable as they’re associated with modifiable health risks.

• In an effort to optimize staff member health, reduce avoidable health care utilization and enhance work performance, and in turn lower health care costs and improve staff member satisfaction and retention, many businesses are developing, or are interested in developing, Wellness Programs for workers.

The benefits of corporate wellness are well documented. More than 120 scientific 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 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 ROI 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, corporations aren’t only providing an additional service for employees, but they are also gaining financially. Furthermore, the impact of a health improvement program goes beyond decreased healthcare 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 extensive guide to designing, starting and evaluating  worksite programs. National Business Group on Health, 1 (1), 1-7.