Case Study of company with a wellness program
Duncan Aviation, with 450 employees in Battle Creek, Michigan, began its health awareness program more than 13 years ago solely to keep employees healthy. AND IT HAS. Duncan has eliminated 60% of identified employee health risks such as high blood pressure, obesity, smoking, etc. Of equal importance, while the health insurance costs of neighboring companies have been increasing by 18% to 40% over the past several years, Duncan’s costs have increased only 7% to 14% even though its health plans are more comprehensive than those of neighboring firms. The health awareness program has received the prestigious C. Everett Koop National Health Award, and the company was recognized by Fortune Magazine as one of the top 100 U.S. firms at which to be employed.
What does prevention offer employers? PLENTY
• Employers who invest in worksite health promotion programs can see a return of $2-$10 for every dollar invested over a 2-5 year period. Documented savings are a combination of lower medical costs, absenteeism, workers compensation claims, short-term disability and presenteeism. Source: American Journal of Preventative Medicine, December 2005.
• A review of 32 studies of corporate wellness programs found that the cost of healthcare claims were reduced by 27.8%, physician visits declined 16.5%, hospital admissions declined 62.5%, disability costs declined 34.4%, and incidence of injury declined 24.8% after a corporate wellness program was instituted.
• A study reported average annual savings of $8.5 million during 4 years when 18,331 Johnson & Johnson employees participated in a health and wellness program at work. A separate study of the same group showed reductions in tobacco use, reduced sedentary lifestyles, lowered blood pressure, improved cholesterol, increased dietary fiber intake, and enhanced motor vehicle safety practices.
• Another study showed that employees who utilized an employee fitness center gained both physical and psychological benefits: 64% reported an improvement in morale, 70% reported improved job satisfaction, 66% reported improved work productivity, 83% reported improved energy levels, 76% reported an improvement in stress management, and 70% reported an increase in attentiveness at work.
What does prevention offer employers? PLENTY
• Employers who invest in worksite health promotion programs can see a return of $2-$10 for every dollar invested over a 2-5 year period. Documented savings are a combination of lower medical costs, absenteeism, workers compensation claims, short-term disability and presenteeism. Source: American Journal of Preventative Medicine, December 2005.
• A review of 32 studies of corporate wellness programs found that the cost of healthcare claims were reduced by 27.8%, physician visits declined 16.5%, hospital admissions declined 62.5%, disability costs declined 34.4%, and incidence of injury declined 24.8% after a corporate wellness program was instituted.
• A study reported average annual savings of $8.5 million during 4 years when 18,331 Johnson & Johnson employees participated in a health and wellness program at work. A separate study of the same group showed reductions in tobacco use, reduced sedentary lifestyles, lowered blood pressure, improved cholesterol, increased dietary fiber intake, and enhanced motor vehicle safety practices.
• Another study showed that employees who utilized an employee fitness center gained both physical and psychological benefits: 64% reported an improvement in morale, 70% reported improved job satisfaction, 66% reported improved work productivity, 83% reported improved energy levels, 76% reported an improvement in stress management, and 70% reported an increase in attentiveness at work.
