OEHN Medical Director Report

by Joe Flynn, COO, OEHN

Wellness focused activities have been around corporate America for many years. Many are well managed and provide strong financial return on investment while others are well intended and fall short of their expected outcomes. This quarter’s Medical Director Report features wellness in the workplace. This value focused initiative directs corporate investment into interventions that improve employee health and enhance business performance. Company wellness programs have shown significant impact on reducing absenteeism, improving on-the-job productivity and presenteeism while benefiting the bottom line. So what makes it so challenging to sell wellness programs to senior executives?

According to a Workplace Wellness Management Survey (2007), proving return on investment (ROI) of a workplace wellness and health promotion program to senior management ranks as the top concern expressed by professionals responsible for administration and management of their organizations wellness programming. This may be because wellness programs involve a substantial investment.

Almost 40 percent of large companies in the United States spend more than $200,000 annually on wellness programs. 20 percent spend at least $1 million. Wellness program leaders must prove their value to the C-suite to ensure continued support of their core wellness initiatives. Some research has validated a return on investment of up to three to six dollar return for every dollar spent on company wellness.

In a survey released last fall by Buck Consultants LLC - HR and benefits consulting firm in New York - Buck analyzed the effectiveness of workplace wellness strategies at 555 organizations representing 7 million employees and assessed whether the programs were achieving business goals. U.S. employers' top goal for wellness programs is health care cost reduction. According to this survey, one-third of respondents reported that they have reduced costs as a result of their initiatives. About half of those -- 49 percent -- reported reductions of 2 to 5 percentage points per year.

In still another survey[1], companies with wellness programs have realized a 28% reduction in sick leave, a 26% reduction in adjunctive health care costs and a 30% reduction in disability and workers compensation costs.

CEO’s and CFO’s of progressive companies across the US are often asked: ”What makes your companies so successful?” Typically the response is “our employees are our greatest asset.” Business leaders are now taking a closer look at the impact of workforce health on workforce productivity. Human capital has been described as the proportion of an individual employee’s total productive output in the service of the firm. At last, CEO’s and CFO’s are asking the bottom line question, “How much am I losing due to employee health problems?”

From my perspective, with a continued focus on wellness ROI, many program leaders are becoming more knowledgeable in the effectiveness, value and high ROI of wellness program strategies. Armed with this information, wellness program managers will find it easier to make the case to invest in wellness program initiatives.

In the end, keeping people healthy is critical to how well business succeeds. With healthier employees, companies perform better.

Sources: This data is according to a report released last fall by the Business Roundtable, a Washington, D.C.-based association of chief executive officers of 160 large U.S. companies representing a combined workforce of more than 10 million. (1.) Health Affairs, Vol. 21, 3-02, ACOEM HPM, 2008, Investing in Health Human Capital, JOEM, 12-03

OEHN delivers premier onsite Medical Director leadership and program oversight for employee and occupational health departments across the country. OEHN is supported by a team of Board Certified Occupational Health physicians, program management staff, project managers and consultants. Its network of twelve hospital clinics and a local, regional, and national network of occupational medicine resources provide labor unions, organizations, hospitals, disability management providers, and the government with a comprehensive portfolio of occupational medicine solutions. Visit OEHN on www.OEHN.net.

Occupational & Environmental Health Network (OEHN)
5 Mount Royal Avenue Marlborough, MA 01752
508 251 7260

MEDICAL DIRECTOR REPORT Vol. 3.3 Q3 2008 *An Occupational and Environmental Health Network Publication*
Investing in Corporate Wellness: Making Your Case
by Joe Flynn, COO, OEHN Wellness focused activities have been around corporate America for many years. Many are well managed and provide strong financial return on investment while others are well intended and fall short of their expected outcomes. This quarter’s Medical Director Report features wellness in the workplace. This value focused initiative directs corporate investment into interventions that improve employee health and enhance business performance. Company wellness programs have shown significant impact on reducing absenteeism, improving on-the-job productivity and presenteeism while benefiting the bottom line. So what makes it so challenging to sell wellness programs to senior executives? According to a Workplace Wellness Management Survey (2007), proving return on investment (ROI) of a workplace wellness and health promotion program to senior management ranks as the top concern expressed by professionals responsible for administration and management of their organizations wellness programming. This may be because wellness programs involve a substantial investment. Almost 40 percent of large companies in the United States spend more than $200,000 annually on wellness programs. 20 percent spend at least $1 million. Wellness program leaders must prove their value to the C-suite to ensure continued support of their core wellness initiatives. Some research has validated a return on investment of up to three to six dollar return for every dollar spent on company wellness. In a survey released last fall by Buck Consultants LLC - HR and benefits consulting firm in New York - Buck analyzed the effectiveness of workplace wellness strategies at 555 organizations representing 7 million employees and assessed whether the programs were achieving business goals. U.S. employers' top goal for wellness programs is health care cost reduction. According to this survey, one-third of respondents reported that they have reduced costs as a result of their initiatives. About half of those -- 49 percent -- reported reductions of 2 to 5 percentage points per year. In still another survey[1], companies with wellness programs have realized a 28% reduction in sick leave, a 26% reduction in adjunctive health care costs and a 30% reduction in disability and workers compensation costs. CEO’s and CFO’s of progressive companies across the US are often asked: ”What makes your companies so successful?” Typically the response is “our employees are our greatest asset.” Business leaders are now taking a closer look at the impact of workforce health on workforce productivity. Human capital has been described as the proportion of an individual employee’s total productive output in the service of the firm. At last, CEO’s and CFO’s are asking the bottom line question, “How much am I losing due to employee health problems?” From my perspective, with a continued focus on wellness ROI, many program leaders are becoming more knowledgeable in the effectiveness, value and high ROI of wellness program strategies. Armed with this information, wellness program managers will find it easier to make the case to invest in wellness program initiatives. In the end, keeping people healthy is critical to how well business succeeds. With healthier employees, companies perform better. Sources: This data is according to a report released last fall by the Business Roundtable, a Washington, D.C.-based association of chief executive officers of 160 large U.S. companies representing a combined workforce of more than 10 million. (1.) Health Affairs, Vol. 21, 3-02, ACOEM HPM, 2008, Investing in Health Human Capital, JOEM, 12-03 Other Medical Director Report Articles: Getting the Weight Off: Workplace Weight Management Program Is Your Office Making You Fat? Taking Control at Your Work Place Investing in Corporate Wellness: Making Your Case by Joe Flynn, COO, OEHN Wellness Programs Keep Employees Healthy: Reduce Health Care Costs Staying Healthy at Work: 8 Tips You Can Use Today OEHN Adds New Medical Director: Abe Timmons DO, MPH Meet Abe Timmons: OEHN's Newest Medical Director EH&S - A Bottom Line Activity: Presentation on November 13, 2008 OEHN Attends Beijing Summer Olympics OEHN delivers premier onsite Medical Director leadership and program oversight for employee and occupational health departments across the country. OEHN is supported by a team of Board Certified Occupational Health physicians, program management staff, project managers and consultants. Its network of twelve hospital clinics and a local, regional, and national network of occupational medicine resources provide labor unions, organizations, hospitals, disability management providers, and the government with a comprehensive portfolio of occupational medicine solutions. Visit OEHN on www.OEHN.net. Occupational & Environmental Health Network (OEHN) 5 Mount Royal Avenue Marlborough, MA 01752 508 251 7260 Subscribe Unsubscribe Send to a Friend	OEHN Adds New Medical Director: Abe Timmons, DO, MPH
	Environmental Health and Safety "What you Don't Know Can Make You Money! Presented by M.B. Amster & Associates 11/13/08