Employers are beginning to recognize the huge stake they have in their employees’ health and wellness. Rising healthcare costs, absenteeism and decreased productivity are only the most direct costs of an ageing and increasingly ailing workforce. In 2004, American corporations spent 16 percent of GDP on health care. It is projected to reach 20 percent in the next decade. Not surprisingly, health expenses are the fastest growing cost component for all employers.
So what’s being done about it?
Everyone acknowledges that preventive health and wellness is the most effective and inexpensive way to address these spiraling costs. Unfortunately, in the American healthcare system, preventative health continues to take a backseat to disease treatment. Among developed countries, America is last – by a long shot – in it’s commitment to preventive medicine. The reasons for this are endemic in the very structure that has served American industry so well.
Capitalism is alive and well
In 2006, total U.S. health expenditures were nearly $2.16 trillion and are projected to reach $4 trillion by 2015. Obviously, there is a lot of money to be made in caring for sick people and plenty of sick people to care for. One of every three employees suffers from at least one chronic condition: nearly 48% have cardiovascular disease, 30% are obese, 16% have hypertension, 12% are diabetic, 8% have asthma and 8% suffer from major depression. With so much money to be made caring for the sick, there is little incentive for our healthcare industry to support preventive health.
Consider cardiovascular disease. It is the leading cause of death and disability and one of the top sources of revenue for hospitals. Decades of research has clearly established that an EBT cardiovascular scan can identify and quantify the disease earlier and more accurately than any other test. The test can be completed in minutes, requires no drugs or preparation, and is one-third the cost of stress nuclear imaging and up to one-half the cost of stress echocardiography. Nonetheless, few hospitals offer the test and many doctors fail to tell their patients about it. There is little incentive for hospitals to offer such an inexpensive test that, when properly used, can obviate more profitable and invasive testing.
Keep your eye on the prize
Hospital sponsored ‘wellness programs’ usually offer on-site screening to identify those of your employees who need further care or testing at the hospital—at your expense. They focus on folks with active disease who can help them generate revenue. After all, their business model is designed to make money treating sick people.
True preventive medicine aims to identify problems earlier and address them when intervention is most effective and least expensive. In other words, keep your employee working and out of the healthcare system generally and hospitals in particular.
What is the goal of a preventive health program?
An effective preventive health program offers the following:
- Baselining: Clinically accurate testing to identify those who are truly at risk to stratify the level of intervention (if any) needed. This helps you put your healthcare dollar where it will do the most good and establishes benchmarks to measure compliance and track progress;
- Feedback: Clear, understandable information to help employees understand their problem and delineate a clear path to dealing with the problem before it becomes symptomatic (and expensive);
- Incentives: Benchmarks provide the basis to reward compliance or shift the cost of risky/noncompliant behavior; and,
- Metrics: Even within the limits of privacy restrictions, much data can be mined about your employees to negotiate premiums, design effective support programs and avoid health catastrophes.
So what’s a smart CEO to do?
1. Be Skeptical! Get personally involved in the process! You didn’t become a leader in your industry by following the pack. Spend the time to educate yourself about preventive medicine. There is no other area where you can have a greater impact on your cost structure than by reducing your healthcare costs. One of the best wellness programs available was designed for the Ohio State Highway Patrol Retirement System by a former patrolman.
2. Keep your eye on the prize. A good wellness program identifies those most at risk at the earliest possible stage. For example, when cardiovascular disease is identified early, it can often be treated with diet, exercise and lifestyle changes. If you wait for symptoms, the options are usually drugs, surgery, disability or death. Seek out programs and services that will help you direct your resources to those who are truly at risk and are calculated to create real change. If your people won’t use it - it won’t work.
3. Think like a businessperson. Demand metrics! If you can’t identify a clear ROI in a reasonable period of time, your wellness program just isn’t working.
4. Involve your people. The only ones with a direct financial interest in the health and wellness of your employees are you and your employee. Look for incentives—carrots and sticks—and build them into the program.
The tired maxim ‘Our employees are our most valuable asset’ should also read ‘… and our most expensive asset’. But be careful who you ask to design a program intended to keep your people out of the hospital and off your insurance claim rolls. Don’t ask the fox to design the lock on your henhouse.
Gil Gradisar, J.D. is president of PrevaHealth Wellness Diagnostic Center in Dublin, Ohio and can be reached at (614) 652-5888