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Truth About Return on Investment

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Title: Truth About Return on Investment


1
Truth About Return on Investment
2
Employee Population Health Management
3
Well
Risk
Urgent
Disease
4
Well
Risk
Urgent
Disease
25
5
Well
Risk
Disease
Urgent
6
Well
Risk
Disease
Urgent
5
7
Well
Risk
Disease
Urgent
8
Well
Risk
Disease
Urgent
60
9
Well
Risk
Disease
Urgent
10
Well
Risk
Disease
Urgent
10
11
Well
Risk
Disease
Urgent
10
60
5
25
15 of employees absorb 85 of costs
12
Well
Risk
Disease
Urgent
13
Disease
25
59 Turnover
14
Disease
25
15
Urgent
5
16
Risk
60
17
Well
10
18
Who Needs Help Adopting and Maintaining Healthy
Behaviors?
19
Who Needs Help Adopting and Maintaining Healthy
Behaviors?
100
20
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21
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22
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23
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24
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25
How can wellness programs impact the bottom line?
26
The Bottom Line
Employee related costs
Unhealthy culture and behaviors
Health risks
Chronic disease
27
Healthcare costs Productivity losses Recruitment
and retention Absenteeism Workers comp STD and
LTD
28
Relative Employee Costs Due to Poor Health
Health Care Costs
Workers Comp
Absenteeism
Presenteeism
Edington, Burton. A Practical Approach to
Occupational and Environmental Medicine
(McCunney). 140-152. 2003.
29
Productivity losses

Presenteeism
Absenteeism

unable to concentrate poor quality of
interpersonal communication the need to repeat a
job work more slowly
30
Value of Lost Productivity
Your Annual Health Care Costs
3 X
31
XZY company-1000 covered lives
32
XZY company-1000 covered lives
33
XZY company-1000 covered lives
Impact of Wellness
Impact of all other cost drivers
34
  • Pharmaceutical companies
  • Malpractice and law suits
  • High tech equipment
  • Medical profession salaries
  • Administration
  • Waste/fraud

35
Return on Investment (ROI)
32 studies
14 studies
36
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37
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38
The Bottom Line
Employee related costs
Unhealthy culture and behaviors
Health risks
Chronic disease
39
1,500-3,500 in Excess Claims for Each
Additional Health Risk
Source Dee Edington, Health Management Research
Center
40
Average 2003 Medical Care Costs
N1,706
Source StayWell Health Management
41
Average 1997-1999 Medical Care Costs
N43,687
Source StayWell Health Management
42
Days Absent in 2003
N941
Source StayWell Health Management
43
Percent with Workers Comp Claims in 2003
N23,916
Source StayWell Health Management
44
Percent with STD Claims in 2004
N23,916
Source StayWell Health Management
45
Total Employee Costs
46
How do we do an ROI analysis?
47
Skeptics sound off
48
  • High employee turnover
  • Employees dont care
  • Employees wont change
  • Were only subsidizing the already well
  • Dont believe wellness programs work
  • Were not self insured
  • Lack leadership support

49
We have a wellness program. Where are my
benefits?
50
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51
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52
Texas Double Whopper
53
Culture of Health
54
Culture of Health
55
Culture of Health
  • Awareness/education
  • Motivation
  • Tools, strategies
  • Policy and environment

56
Individual
57
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58
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59
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60
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61
16 oz
32 oz
44 oz
52 oz
64 oz
62
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63
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64
Individual
Family
65
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66
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67
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68
Individual
Family
Worksite
69
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70
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71
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72
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73
Individual
Family
Worksite
Community
74
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75
Somewhere in Florida
76
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77
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78
Percent of adults who are overweight or obese by
country
US 74
Russia 50
Percent
India 16
WHO, 2007
79
Do you really have a wellness program?
80
Individual
Family
Worksite
Community
81
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82
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83
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84
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85
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86
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87
Why Should I Care?
Morbidity
Lifespan in years
76
0
critical illness
Ann Intern Med, 2003139455-459
88
Morbidity
Lifespan in years
0
?
76
86
critical illness
89
End of Life Benefits
Morbidity
Lifespan in years
10-20 Years
Morbidity
Lifespan in years
90
End of Life Benefits
Morbidity
Lifespan in years
91
End of Life Benefits
Morbidity
Lifespan in years
92
End of Life Benefits
Morbidity
Lifespan in years
93
End of Life Benefits
Morbidity
Lifespan in years
94
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