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Wellness in the Workplace

2. Introduction . Open your hymnals!"What are the linkages between healthy employees and healthy bottom lines? . the Health and Productivity ModelWhy the disconnect? How to restore the linkages? Is there an attractive ROI?Making Workplace Wellness" a reality. 3. Business case for Health

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Wellness in the Workplace

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    1. 1 Wellness in the Workplace Stephanie Ramsey, M.P.H. Ohio Bureau of Workers’ Compensation April 15. 2005 Meeting of the American Association of Safety Engineers April 15, 2005

    2. 2 Introduction Open your “hymnals!” What are the linkages between healthy employees and healthy bottom lines? …. the Health and Productivity Model Why the disconnect? How to restore the linkages? Is there an attractive ROI? Making “Workplace Wellness” a reality

    3. 3 Business case for Health and Productivity Management Rising medical and disability costs create business pressure that can mean the difference between success and failure to a company - Costs of medical services in the U.S. are rising at 7 times the rate of inflation (RWJ expects this rate to continue) - Claim costs (WC, Medical, Disability) - WC costs increased with increasing risk status ( Study at Xerox Corp. 1996-1999, Health Management Research Center, Univ. of Michigan) Workforce demographics - An aging workforce - Greater incidence of chronic disease - Incidental absence

    4. 4 Business case for Health and Productivity Management Summary of Costs (Continued) Productivity - Absenteeism - “Presenteeism” - Shift to a “knowledge based” business model - World-wide competitive environment Ancillary costs - Claim administration, vendors - Benefit plan design changes - Decreased benefits - Increased cost sifting

    5. 5 First generation business response Benefit Plan design changes Emphasis on the “cost shift” Greater employee share to the claim expense 65% of companies in 2003 increased employee share of health costs (Healthy Ohioans Business Council) 79% of large firms reported plans to increase employee share in 2004 (HOBC)

    6. 6 New Paradigm: Health & Productivity Management Human Capital management approach Not “cost shift” but “demand management” grounded in prevention Addresses absence, “presenteeism,” and employee health to lower incidence, decrease costs, and increase productivity

    7. 7 Employer response Employers moving toward implementation across dimensions of wellness and health promotion to keep low risks low and manage high risks 69% using disease management programs through a health plan (NBGH/WW Study 2004) 50% increase over prior year 32% offering obesity reduction (up from 14% in prior year) Best performing companies succeeding across the board at managing costs and improving employee satisfaction!

    8. 8 Is there a persuasive ROI?!!! Case Study Results Travelers Insurance reported $3.40 return to $1.00 spent on health promotion programs DuPont Fitness Program ? savings of $1.6M, $1.5M, $3M annually over 3 years Logan Aluminum (Kentucky): 2002-2003 - ? Health claims by 19% - ? 10% reduction in health care costs - Reversed prior annual increases of pharmacy costs of 20.2% (over 3 years) to reductions in 2002 & 2003 of 5.5% and 5.3%

    9. 9 More Outcome Results Kimberly Clark reports a 43% reduction in absenteeism among EAP participants & a 70% drop in accidents for one year post treatment vs. one year prior to treatmemt Adolph Coors reports a return of $1.24 - $8.33 for every $1 spent on employee wellness and a $1.3M saving through a cardiac rehab program over a 6 year period

    10. 10 Establishing a successful wellness program: Tips from the National Business Group on Health Assess: - What is corporate interest and need? - What are prior recommendations? - Evaluate costs and benefits - Communicate results of evaluation to all decision makers

    11. 11 Step 2 Developing/Purchasing - Set overall objectives - Determine whether to buy or build - Establish utilization goals - Set service parameters for quality service delivery - Develop quality assessment measures of health plans offering preventive services - Develop workflow and roll-out specs

    12. 12 Step 3 Communicating - Research attitudes and preferences of target audiences - Establish communication objectives - Identify target audiences and how they prefer to communicate - Use multi-media approach

    13. 13 Step 4 MEASURE…. MEASURE…. MEASURE - Measure results against PRE-DETERMINED objectives… do NOT chase data !!!! - Evaluate program outcomes ( improved health, decreased risk factors, behavior change, reduced costs, lower absenteeism) - Evaluate benefit plan programs, preventive services, health promotion/disease management programs

    14. 14 Resources Ohio BWC’ The Ohio Department of Health The Wellness Councils of America: www.welcoa.org The National Business Group on Health www.businessgrouponhealth.org The Integrated Benefits Institute The Disability Management Employers Coalition

    15. 15 The challenge…. “The health of the people is really the foundation upon which all their happiness and all their powers as a state depend.” Benjamin Disraeli Improving health IS improving business….

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