Professional Documents
Culture Documents
Corporations
The following posts are comprised of a research paper I had to do. It focuses on the American healthcare
dilemma and a possible way to reduce exploding healthcare costs. All references will be posted with the last
post in this series.
Part 1: Introduction
Part 2: Teaching People to be Well
Part 3: A Successful Model of a Wellness Program
Part 4: Creating a Culture of Wellness, the Long Term Return On Investment?
Part 5: What Could a Wellness Program for your Company Look Like?
Part 6: References
I Introduction
We are experiencing a wellness crisis. Ours is a culture that looks at health through the focus of disease
management rather than teaching the fundamentals of healthy living. This culture led to obscene health care
costs as it promoted unhealthy lifestyles with immediate gratification, a pill for every ill, the quick fix. The
consumption of chemical laden foods, toxic products by way of slick media advertising, and a lack of physical
activity are followed by a rapidly deteriorating level of public health. Epidemic levels of obesity, diabetes, and
heart disease are the results (Strohecker, 2005).
As employee healthcare costs for corporation of any size continue to climb, management can no longer ignore
and be retroactively active to rising healthcare costs. Executives need to become proactive in considering to
establish a viable wellness program for a companies employees. Now is the time for corporations large and
small to implement a "Whole Person Wellness Program" for the 21st century pertaining to each and every
employee.
Spiraling health care costs make it impossible for average families to pay for healthcare. According to the
Centers for Medicare and Medicaid Services, national health expenditures rose to about $1.4 trillion in 2001.
Roughly 95 percent of this goes to direct medical services (Walker, 2003, p. 1). Very few dollars are devoted to
promoting health: just 5 percent is allocated to population wide approaches to health improvement. Clearly,
the federal government is totally clueless. Medical insurance premiums continue to rise beyond affordability
for the average family, with premiums approaching $1,000 a month (Strohecker, 2005). Families are looking to
their employers to provide affordable health insurance. Companies, are struggling to pay employee health
benefits. Corporations and employees are on their own. This research paper will present a way out of this
dilemma, by showing that some companies use effective approaches to bring "out-of-control" spiraling
healthcare costs under control, increasing employee productivity, employee retention, overall job satisfaction,
and last but not least, corporate profit.
II Teaching People to be Well
Dr, Travis, the founder of the first wellness center, which opened its doors in 1975 in California, created the
first wellness assessment, the Wellness Inventory. A quote of his: "Wellness is a way of life... a lifestyle you
design to achieve your highest potential for well-being (Strohecker, 2005)." Companies are going through great
lengths to train employees for the job.
They even teach their employees what to say, when and how to say it. Companies train people in every aspect
of their job, so they may be able to perform at their greatest potential. But yet, most companies leave it to
chance for people to actually adopt a wellness lifestyle, which will allow them to be at their highest potential,
all the time. It will become imperative for companies to start educating employees about wellness in order to
make any headway toward reducing medical healthcare spending.
III A Successful Model of a Wellness Program
First, a clear definition of a well established, functioning wellness program needs to be settled on. Well
received, functioning programs seem to have one thing in common. The purpose of any wellness program, in
any company, is to control and/or prevent at-risk workers from developing chronic diseases stemming from
poor nutrition, lack of exercises, high blood pressure, obesity, and stress. Eventually the program should cover
disease management of rare chronic conditions. To develop a cost effective wellness program, the needs of the
program should be based on employee demographics and medical cost drivers. According to Jack Bastable at
CBIZ Inc., who believes that most companies should focus on wellness for all workers rather than disease
management for a relative few: "The greatest savings, long term, come from the opportunity to keep people
who are healthy from getting sick," he explains. The minimum requirement would be distribution of pamphlets
to employees, pointing them to free health information, and host seminars with local health care professionals
(Hirschman, 2006).
Moving from a clear definition, design principles of a wellness program need to be focused on. Such an
approach was used to develop Fairview Health Services' wellness program. This program won the 2003 C.
Everett Koop National Health Award and the 2004 Corporate Health and Productivity Management Award from
the Institute for Health and Productivity Management. Fairview is a health services company in Minneapolis,
with 200 locations all through Minnesota and employees ranging from six to 3,500 per location. The work force
is comprised of 18,000 employees, of whom 13,500 qualify for benefits, which start when an employee works
20 hours or more per week (Institute of Management & Administration, 2006).
1. An Effective Wellness Program Must Use a Population Health-Management Approach
We need to consider the Illness/ Wellness continuum and the relationship of Wellness and
Treatment Paradigms. The center of the continuum is the neutral point. Moving to the left depicts a state of
deteriorating health, up to premature death. Moving to the right of the center indicates increasing levels of
health through awareness, education, and growth to a high level of wellness. The treatment paradigm can
bring a patient only to the neutral point, where disease symptoms have been alleviated. The wellness paradigm
moves to a high level of health from any point on the continuum.
This approach will also recognize that people are at varying levels of readiness to change, making multiple
strategies necessary.
2. A Wellness Program Needs to be Based on Acceptance of Personal Responsibility.
It needs to be strictly voluntary. The wellness program needs to provide tools and opportunities,
but
needs to be left to each individual employee whether or not to participate and do something with it.
3. The Wellness Program Needs to Develop Trust.
The employee needs to trust the company that the information gathered would in fact not be
used eventually against the employee, because of the information gathered by the HRA (Health Risk Appraisal).
According to Valerie Witt, a benefits specialist at Johnson Memorial Hospital in Franklin, Indiana, it is
important to let employees know that their healthcare is important to the company. Barbara Eischen,
Fairview's Health Services Director of Health and Benefits Services cites the company's mission statement as a
guiding principle: "Enhance the overall health and productivity of Fairview employees and their families."
Fairview defines health as social, emotional, spiritual, and physical health and well being, pretty close to the
definition of health by the World health Organization. It states, "health is a state of complete physical, mental
and social well-being and not merely the absence of disease or infirmity" (WHO, 1946). In more recent years,
this statement has been modified to include the ability to lead a "socially and economically productive life."
4. The Wellness Program Needs to Incorporate Evaluation Considering Leading
and Lagging Indicators.
Analyzing claims records (medical, workers compensation and disability) and unplanned
absences such as sick leave will help discover health hazards, using a health risk appraisal, which is the
foundation of developing a great wellness program.
5. The Wellness Program Needs to be Integrated Across Multiple Disciplines.
Fairview's program started first with health risk appraisals, awareness (health education) and
self care. Then it centered on behavioral changes, lifestyle interventions and health coaches. In 2003 Fairview
added disease management of rare chronic diseases. And one year later management of high prevalence
chronic conditions with the use of predictive modeling to intervene with health care utilizers.
IV Creating a Culture of Wellness, the Long Term Return On Investment?
A 2002 study of effective health care cost management through the implementation of a wellness program
was conducted by Hocakulah and Joseforsky for a company which they refer to as Crandon Corporation's Elcho
division*. Elcho division employs 2,500, mostly hourly, persons. Elcho identifies the following health risk
factors: Many of Elcho's employees are at an age when illness and disease develops, the average age is 51
years, 80 percent of the employees are male (Kocakulah & Joseforsky, 2002).
Many of Elcho's employees suffer from high blood pressure, high glucose, cardiovascular disease, cancer
and obesity. Age is not controllable but all the other factors such as poor nutrition, lack of regular exercise,
high blood pressure, and obesity are. Reducing a risk factor will help the employee as well as the company's
bottom line. The self funded insurance plan provided by Crandon, brings the average health care cost per
employee to $5,200. At the time of the 2002 report, the average employer paid $4,164 per employee in annual
health care (Kocakulah & Joseforsky, 2002). Another 1999 study suggests that a direct correlation exists
between the number of risk factors an employee possesses and their short-long term healthcare costs. The
conclusion of the study cites the possibility of a modifiable healthcare risk lowering healthcare costs in as little
as 18 months (Kocakulah & Joseforsky, 2002). Based on this study, on average, Elcho will have the following
population of persons with risk factors:
Risk Factor, Percent of Employees, Number of Employees
Inadequate Exercise 50% 1,000
Offer wellness coaching to help employees who need assistance and motivation in formulating
their personalized wellness
action plan. One-on-one consultations to explain results to individuals and suggest changes, such as weight loss
or more exercise.
C. Establish a Health Coaching Program
To motivate and guide lifestyle changes in workers at high risk for chronic conditions.
And lastly, when the employee takes the HRA, they are directed to the right health coach, addressing the
employees immediate need in order for them to move down the risk assessment ladder. Your company might
not realize the success of Fairview's program which has earned them several national awards. Applying the
same potentials of savings as in Crandon's Elcho Division to a company with $2 million in health care expenses,
after implementation of a comprehensive wellness program, your company could realize a savings in the range
of $140,000 to $180,000 annually. If your company could realize savings comparable to Fairview, based on 700
employees, these cost reductions would amount to between $81,200 and $324,800 per fiscal year. These
numbers are very encouraging taking into account that your company will be proactive in management of its
health care costs providing future savings, when national health care costs will continue to spin out of control.
Employees, once they trust management, will participate in a wellness program, as shown by Fairview's
experience, participation went from 56% of employees in 2001, to 86% of employees at the end of 2004.
A quote by Mark McConnell, vice president of the employer solution group at American Healthways Inc., a
disease management firm based in Nashville, Tennessee, sums up the healthcare crisis employers are facing
best:
"The cost of doing nothing is much greater than the cost of this wellness program," referring to their
recently implemented wellness program.
VI References
Burns, J (1999).Health promotions produce measurable results. Managed Healthcare. 9, 5.p. 42. Cited in
Hirschman, C (2006, May 1). Promoting health. Employee Benefits News.
Institute of Management & Administration, (2006).Fairview's wellness program cuts cost, number of high-risk
employees. Managing Benefits Plans. i06-04, 1-5.
Kocakulah, AuthorM., & Joseforsky, H. (2002). Wellness programs: a remedy for reducing healthcare costs.
Hospital Topics. 80, 2, p.26.
Moskowitz, D. (1999).The bucks behind the wellness boom. Business and Health. 17, 2, p.43-44. Cited in
Kocakulah, AuthorM., & Joseforsky, H. (2002). Wellness programs: a remedy for reducing healthcare costs.
Hospital Topics. 80, 2, p.26.
Powell, D. (1999).Characteristics of succesful wellness programs. Employer Benefits Journal. 24, 3, p. 15-21.
Cited in Kocakulah, AuthorM., & Joseforsky, H. (2002). Wellness programs: a remedy for reducing healthcare
costs. Hospital Topics. 80, 2, p.26.
Pronk, N., Goodman, M., O'Connor, P., & Martinson, B. (1999). Relationship between modifiable health risksand
short-term healthcare charges. Journal of the American Medical Association. 282:2235, p. 39. Cited in
Kocakulah, AuthorM., & Joseforsky, H. (2002). Wellness programs: a remedy for reducing healthcare costs.
Hospital Topics. 80, 2, p.26.
Strohecker, J (2005).Whole person wellness- a 21st century solution. Total Health. 27, 2, p.54.
Strohecker, J (2005).Creating a culture of wellness. Total Health. 27, 3, p.58.
Walker, T (2003).The road to wellness is a two-way street. Managed Healthcare Executive. 13, 9, 1.
World Health Organization, (2006). What is the WHO definition of health? Retrieved October 21, 2006, from
Frequently Asked Questions Web site: http://www.who.int/suggestions/faq/en/