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The Business Case for Investing in Worksite Health Promotion

The ability of the US businesses to compete and be sustainable is threatened by health care costs.

The fastest growing cost for employers are employee health benefits. For an average Fortune 500 company, overall health benefit costs are projected to exceed profits by 2008. ¹
The number of businesses offering health benefits is decreasing, from 69% in 2000 compared to 60% in 2005. ²
The amount of Gross Domestic Product (GDP) spent on health care is projected to increase from 15.3% in 2003 to 18.7% in 2014. ³
Health care costs will be impacted exponentially by health risks and chronic illnesses associated with an aging workforce. ⁴

Investments in prevention, health risk reduction and disease management programs have demonstrated returns on investment; and are a viable way for businesses to address the health of their employees and their bottom lines.

Savings per dollar invested in worksite health promotion programs.

From a review of 73 published studies of worksite health promotion programs ⁵

Average $3.50-to-$1 savings-to-cost ratio in reduced absenteeism and health care costs.

From a meta-review of 56 published studies of worksite health promotion programs ⁶

Average 27 percent reduction in sick leave absenteeism
Average 26 percent reduction in health costs
Average 32 percent reduction in workers’ compensation and disability management claims costs
Average $5.81-to-$1 savings-to-cost ratio

In a critical review of 12 new studies published between 200 and 2004, all studies reported “favorable clinical and/or cost outcomes.” ⁷

¹ The McKinsey Quarterly. Will health benefits eclipse profits? Available at: www.mckinseyquarterly.com/newsletters/chartfocus/2004_09.htm. Accessed April 10, 2007.

² Kaiser Family Foundation. Employer health benefits: 2005 annual survey. Available at: www.kff.org/insurance/7315/upload/7315.pdf (PDF, 3MB). Accessed April 10, 2007.

³ Heffler S, Smith S, Keehan S, Borger C. U.S. health spending projections for 2004-2014. Health Affairs. 23 February 2005: 74-85.

⁴ Partnership for Solutions. Projection of chronic illness prevalence and cost inflation. www.partnershipforsolutions.org/statistics/out_of_pocket.html. Accessed April 10, 2007.

⁵ Aldana SG. Financial impact of health promotion programs: a compre¬hensive review of the literature. Am J Health Promotion. 2001;15(5):296-320.

⁶ Chapman LS. Meta-evaluation of worksite health promotion economic return studies: 2005 Update. Am J Health Promotion. 2005 Jul-Aug;19(6):1-11.

⁷ Pelletier KR. A review and analysis of the clinical and cost-effectiveness studies of comprehensive health promotion and disease management programs at the worksite: update VI 2000-2004. J Occup Environ Med. 2005;47(10): 1051-1058.