Truth About Return on Investment

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Truth About Return on Investment
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Employee Population Health Management
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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
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Well
Risk
Disease
Urgent
13
Disease
25
59 Turnover
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Disease
25
15
Urgent
5
16
Risk
60
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Well
10
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Who Needs Help Adopting and Maintaining Healthy
Behaviors?
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Who Needs Help Adopting and Maintaining Healthy
Behaviors?
100
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How can wellness programs impact the bottom line?
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The Bottom Line
Employee related costs
Unhealthy culture and behaviors
Health risks
Chronic disease
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Healthcare costs Productivity losses Recruitment
and retention Absenteeism Workers comp STD and
LTD
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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.
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Productivity losses

Presenteeism
Absenteeism

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

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Return on Investment (ROI)
32 studies
14 studies
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The Bottom Line
Employee related costs
Unhealthy culture and behaviors
Health risks
Chronic disease
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1,500-3,500 in Excess Claims for Each
Additional Health Risk
Source Dee Edington, Health Management Research
Center
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Average 2003 Medical Care Costs
N1,706
Source StayWell Health Management
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Average 1997-1999 Medical Care Costs
N43,687
Source StayWell Health Management
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Days Absent in 2003
N941
Source StayWell Health Management
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Percent with Workers Comp Claims in 2003
N23,916
Source StayWell Health Management
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Percent with STD Claims in 2004
N23,916
Source StayWell Health Management
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Total Employee Costs
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How do we do an ROI analysis?
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Skeptics sound off
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• 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

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We have a wellness program. Where are my
benefits?
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Texas Double Whopper
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Culture of Health
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Culture of Health
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Culture of Health

• Awareness/education
• Motivation
• Tools, strategies
• Policy and environment

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Individual
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60
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16 oz
32 oz
44 oz
52 oz
64 oz
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Individual
Family
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Individual
Family
Worksite
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Individual
Family
Worksite
Community
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Somewhere in Florida
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Percent of adults who are overweight or obese by
country
US 74
Russia 50
Percent
India 16
WHO, 2007
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Do you really have a wellness program?
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Individual
Family
Worksite
Community
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Why Should I Care?
Morbidity
Lifespan in years
76
0
critical illness
Ann Intern Med, 2003139455-459
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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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