Alere director to analyze value of worksite health programs at 28th SALGBA conference

Apr 19 2010

The importance of measuring productivity, short-term disability, workers' comp and job satisfaction when analyzing the value of worksite health programs will be the key focal points of a presentation by David Wolf, MBA, director of product management for Alere, at the 28th annual State and Local Government Benefits Association (SALGBA).  

Wolf's presentation, entitled "Measuring and Communicating the Value of Wellness," is scheduled for Tuesday, April 20 from 10:15 a.m. to 11:45 a.m. at the SALGBA conference in Indianapolis.  Alere is recognized as one of the nation's leading providers of health and wellness programs, and through the Alere Center for Health Intelligence, it has conducted and published numerous employer and health plan-based research studies on the value of health and wellness programs.

Highlights will include a description of several factors critical to successful outcomes and methods for reporting the value of program investment, including the importance of recognizing employees as human capital investment and the need for company executives to become champions of creating "cultures of health."

"We know that one of the most important factors contributing to the success of wellness programs is executive and middle management's commitment to creating a culture of health throughout the organization," said Wolf.  "Health and wellness programs work – they save money and improve the health of employees. But for optimal results, management throughout the organization has to be involved, supportive and serve as an example to the entire workforce population."

With regard to cost savings, Wolf will highlight that a number of recent studies are beginning to give employers the value proposition that builds an economic case for wellness programs.  Recent studies have shown that medical costs fall by about $3.27 for every dollar spent on wellness programs.

While recognizing that employers focus on specific costs for pharmacy and medical benefits, Alere's research also shows the importance of understanding the full cost of poor health on employer costs.  Alere has shown that an employee with $3,376 in medical and pharmacy costs actually costs an employer $10,128 in health-related productivity costs, including absenteeism (e.g., short- and long-term disability) and presenteeism (turnover, administrative costs, poor workmanship, etc.). Research also shows that the more illnesses an employee has, the higher their lost-productivity costs.

"If we can change cycles by helping people become healthier, we can improve an organization's financial performance," said Wolf. "The key is developing programs that incentivize all employees to participate and that reward employees not only for the end results, but for their overall effort to improve their health."

Other key topics to be presented in the presentation will include:

• The wellness "value chain"  and how it leads to risk reduction
• Using wellness programs to increase job satisfaction and decrease turnover
• The role of wellness programs in improving customer satisfaction
• The importance of a comprehensive and integrated benefit strategy, including design, absence and disability management, wellness programs and incentives