Benefits of Health Promotion Programs.

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

o  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.

o  Potentially, 50 percent to 70 percent of all illnesses are preventable as they are associated with modifiable health risks.

o  In an effort to optimize employee health, reduce avoidable healthcare utilization and enhance work performance, and in turn lower healthcare costs and improve employee satisfaction and retention, many businesses are developing, or are interested in developing, Wellness Programs for personnel.

The benefits of corporate health promotion are well documented. Greater than 120 research repeatedly show themes such as improvements in health outcomes coupled with high Return On Investment (ROI). Some major findings include the following -

o  Savings of $3.48 in reduced health care costs per dollar invested.

o  Savings of $5.82 in decrease absenteeism costs per dollar invested.

o  ROIs of at least $3 to $8 per dollar invested within five years of wellness program implementation.

o  Lifestyle behavior change programs –  $3 to $6 Return On Investment (ROI) within 2 to 5 years.

o  Self care, decision support health promotion programs –  $2 to $3 Return On Investment within a year.

o  Illness management programs –  $7 to $10 Return On Investment (ROI) within a year.

By offering wellness programs, corporations aren’t only providing an additional service for employees, but they’re also gaining financially. Moreover, the impact of a wellness program goes beyond lowered health care cost and ROI.

A wellness 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 reviewing health promotion programs. National Business Group on Health, 1 (1), 1-7.