WHAT YOU DON’T KNOW ABOUT HEALTHCARE COULD COST YOU AND YOUR BUSINESS


By David Spellberg, M.D.

IMPACT OF HEALTHCARE ON COMPANIES

With the current economic landscape causing rising healthcare costs, employee wellness is of the upmost importance. For most businesses, health costs can use up to 50 percent or more of their profits. In fact, the indirect costs of poor employee health, such as an absence from work and reduced work productivity, can result in two or three times the actual amount of direct medical costs. Moreover, compliance or non-compliance with Obamacare (the Patient Protection and Affordable Care Act) can save or cost a company significantly.

With employers continually trying to lower their healthcare costs and conform to the law, now is a perfect time to concentrate on wellness programs. These programs have proven to be valuable tools for cutting healthcare expenses. Proactive approaches to wellness are now widely accepted as both cost-effective and necessary for successful benefits programs. One study found that at least one-fourth of healthcare costs incurred by working adults are attributed to avoidable risks, such as tobacco use, diet, and lack of exercise.

The prevalence of wellness programs in today’s work environment was examined in the Aflac Work Forces Report, an online survey of more than 1,800 benefits decision-makers and more than 6,100 U.S. workers. The study included findings about the impact of wellness programs on employee satisfaction, well-being, and productivity. Compared to workers who are not offered wellness programs, employees who are offered and participate in wellness programs are more likely to have a higher level of job satisfaction, feel happier with their employer, and be more satisfied with their overall benefits.

While companies certainly care about the well-being of their employees, benefits decision-makers admit that a primary reason their company maintains a wellness program is to curb healthcare costs – and 59 percent of companies agree that wellness programs can help reduce these costs.

Despite the benefits of wellness programs, nearly 22 percent of companies do not offer them for their workforce due to the difficulty in quantifying the return on investment. However, a comprehensive analysis of 42 published studies of worksite health promotion programs showed that companies that implemented an effective wellness program realized significant cost reductions and financial gains, including a 28 percent reduction in sick days, a 26 percent reduction in health costs, and a 30 percent reduction in workers’ compensation and disability management claims.

Creating a healthy workforce requires more than just physical health. Financial security is another factor that influences overall wellness. Many American workers today are facing financial problems and high debt as a result of the economy. These situations can cause workers enormous amounts of stress, which, in turn, can reduce overall wellness. As a result, employers also feel the effects of their employees’ anxiety, including higher healthcare costs and productivity losses.

WHAT COMPANIES CAN DO TO REDUCE THE NEGATIVE IMPACT OF HEALTH ISSUES

Given that employees spend about a quarter of their time at the office, companies can do quite a bit to help them stay healthy and to cut their own costs in the process. For example, companies can:

1) Provide plenty of nutritious options in cafeterias and vending machines; and, because healthy foods often cost more, employers can subsidize the cost of purchase.

2) Make workplaces smoke-free and help employees kick the habit outside of work.

3) Encourage exercise by offering employees free use of a fitness center or subsidizing employees’ memberships to local gyms. When possible, leaders should set the example themselves, even if it means taking a brisk ten-minute walk at lunch.

4) Offer on-site health education and screening for conditions such as high blood pressure and high cholesterol.

5) Share with employees who do take care of themselves some of the savings they generate.

6) Design health care programs with a component that reaches out to employees’ immediate families. Keeping families healthy produces greater savings for companies.

7) Productive company wellness programs do not simply consist of organizing an office softball league or offering gym membership incentives. Wellness programs should be holistic and include key areas of employees’ everyday lifestyles, including a focus on a healthy work environment, healthy eating habits, stress management, and financial management.

CONVINCING COMPANY LEADERSHIP TO GET ON BOARD

In order for companies to be effective in the implementation of a successful wellness environment, all company leaders should be relentless in their efforts. It’s not just senior leadership support that is needed; leadership throughout the organization must be on board. Here are some ideas to consider in communicating to senior management.

1) Encourage alignment with corporate culture. Connect your health and wellness program to the corporate culture, both published (mission and vision statements) and underground (how things really get done). Tapping into workers’ intrinsic desire to manage their own health and lead healthier lives requires wellness education, regular and targeted communication, and, perhaps most important, a workplace environment that supports and cultivates a healthy lifestyle.

2)Give leadership the facts. Circulate industry studies and evaluation results, but don’t assume executives or managers in departments outside of health and wellness will read the entire article. Provide a brief executive summary and highlight key points for them, especially points that relate specifically to the interests or department type of each individual manager, along with projections of potential healthcare cost savings.

3) Give leadership a role to play. Let leaders/managers know what they can do to help your wellness program succeed. Clearly describe what you expect from them and when. It may be as simple as “walking the talk,” or as complex as changing corporate policies.

4) Show leadership they’re keeping up with their peers. Share research findings from outside your company. Managers need to see that their peers in other companies and industries are already open to health and wellness activities. They’re more likely to participate if they believe it helps their professional development.

5) Recognize managers whose departments meet wellness goals. A little healthy competition never hurt. If managers see their peers being recognized for activities that are valued by senior management, they’re more likely to join in.

6) Recognize supporters. Find managers who are active, positive health and wellness role models, and hold them up as examples to other groups. Keep these role models informed of wellness program objectives and successes so they can help spread the word.

7) Find or cultivate your executive champions. These are managers who believe in the importance of health and wellness, and who are in a position to support it. Align your program with their vision by gaining buy-in and collaborating on decisions.Let them know how the program is succeeding. This seems obvious, but it’s easy to forget about your champions in the heat of program implementation. You don’t want to lose their interest.

8) Branch out. You need support from managers throughout the company to help the program succeed. Make it easy for them. Send special invitations to health and wellness events. Offer simple activities they can use to demonstrate to their departments that they’re involved, such as fun competitions with other departments. Send them department-specific messages they can share with their groups either in person or via email. In a focus group conducted by WebMD with a diverse employer, participants shared their desire to hear things verbally from their manager.

9) Interact with managers as to their attitudes towards wellness programs. Find out what they think is important and listen to their concerns. Provide information on the value of health promotion programs: how these programs can help attract and retain key employees, or help managers meet aggressive deadlines by reducing absenteeism.

10) Listen and respect the opinions of others. Some managers might already understand the program, but still don’t want to support it. You may not be able to change everyone’s mind, but if they believe you respect their opinion, they will be less likely to interfere with your program.



Please visit Dr. Spellberg’s websites;
davidspellberg.com
drdavidspellberg.com
davidspellberg.net
davidspellberg.info
aboutdavidspellberg.com