Benefits of Wellness Programs.

August 27th, 2010 by Wellness Statistics, under Wellness Statistics. No Comments

The costs of health care have been rising more than 10% yearly for a few years. A substantial amount of the money spent in the health care system treats expensive illnesses and illnesses.

• 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 illness and promoting health.

• Potentially, 50 percent to 70 percent of all diseases are preventable 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 companies are developing, or are interested in developing, Wellness Programs for staff members.

The benefits of corporate 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 costs per dollar invested.

• Savings of $5.82 in lower rates of 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, employers aren’t only providing an additional service for staff members, but they’re also gaining financially. Moreover, 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 investigating  worksite programs. National Business Group on Health, 1 (1), 1-7.

Tags: Wellness Statistics