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Healthy employees let companies cut medical costs
By Tracy Wheeler Beacon Journal medical writer
Published on Tuesday, Nov 13, 2007
Business is all about the bottom line: Reduce costs. Maximize profits.
And in today's marketplace, few corporate costs attract as much attention as health care. The easy thing to do would be for businesses to cut contributions toward employee medical premiums.
Easy, maybe, but probably not smart.
And certainly not right, said Annerose Zorn, president and owner of JuzoUSA, a compression garment manufacturer in Cuyahoga Falls. In fact, Zorn has decided to spend more on employee health initiatives — buying fitness center memberships for any employee who wants one, providing nutrition lessons at lunch time, offering free health screenings in the office and, in general, fostering a healthier work environment.
''Our philosophy is, I'd really like to have happy people around me,'' Zorn said. ''People make a company. Having a healthy body gives you a more positive attitude. I don't care what kind of degree you have, if you don't have a good attitude, everybody around you will be miserable. On top of that, with a healthier body comes a healthier mind.''
And, ultimately, with a healthy body come lower medical costs in the future, because active, healthy employees are less likely to need medical care. (Studies have shown that preventable illness accounts for about 80 percent of all illnesses and 90 percent of all medical costs.)
Companies benefit
Corporate fitness and wellness programs have also been shown to decrease absenteeism, increase productivity, reduce turnover and save a lot of money. According to a report by the U.S. Department of Health and Human Services, businesses have seen huge financial payoffs by investing in employee health.
Caterpillar, for example, expects that its Healthy Balance Program will save the company $700 million by 2015, having seen a measurable change in physical activity, cigarette smoking, stress, and fat and fiber consumption among employees.
Northeast Utilities has seen a $1.4 million reduction in claims from its WellAware program, with 31 percent fewer employees smoking, 29 percent more exercising and 10 percent eating healthier.
At Motorola, every dollar invested in its wellness program
is expected to save $3.93 in medical costs, and Johnson & Johnson says its wellness program has saved an average of $224.66 per employee annually.
So there are obvious financial incentives to invest in employee health. But money shouldn't be the driving force, Zorn said.
''We spend so much money to keep customers, to get new business, we also need to spend money to have well-rounded employees,'' she said. ''Happy employees perform better, they're nicer to our customers on the phone, they're nicer to each other. It comes full circle.''
The people running Sterling Jewelers agree. The company was the first corporate winner of Akron General's Wellness Champions award for it efforts to boost healthy lifestyles among employees.
The company offers on-site mammograms, stop-smoking classes and Weight Watchers meetings. It has worked with its insurer, Great-West Healthcare, for employees to have access to colonoscopies for just $25. And it's Great Beginnings program gives women of child-bearing age access to a registered nurse who coaches them through pregnancy or pregnancy planning, along with books and other information. Women who sign up for the program during their first trimester are given a $300 savings bond. Signing up during their second or third trimesters would be worth a $200 or $100 savings bond, respectively.
Sterling is beginning to track employee claims to see whether the program is having an impact on medical costs, said Lynn Ahlers, vice president of compensation and benefits, but that's not the motivation behind it.
''This is really about the health and well-being of the employees,'' she said.
Co-workers encourage
At Juzo, an atmosphere of positive peer pressure has taken hold, especially during the weight-maintenance challenge during the holidays, when four-person teams compete to see who can make it through the holidays without gaining weight. A fun, supportive attitude of ''don't you dare gain'' takes hold, said Louisa Heyden. At a time of year when fattening treats are available daily, ''it's not unusual to hear someone say, 'Don't you dare eat that,''' she said.
That peer pressure has taken root with the fitness center memberships, too, with 80 of Juzo's 100 employees taking advantage of Zorn's offer.
''It's really helping me with my weight,'' Heyden said of the free membership to Akron General's Health & Wellness Center North. If her motivation is waning, a sense of guilt is often enough to get her to the gym. ''This woman is paying a fortune for us to have this opportunity. I'd better go.''
Patty Burkley, Juzo's human resources director, said the gym membership has given her ''the oomph I needed to get back in the groove of things'' after having a baby four months ago. ''Being able to use the membership without the cost was a big factor for me.''
Tips for employers
Not all corporate efforts have to come with a huge price tag, though. Steps can include:
Shifting approach and attitude. Work with your insurer to create a medical plan that promotes wellness care, not just sickness care, Ahlers said. Encourage screenings (such as blood pressure, cholesterol, and diabetes), prevention (more exercise, better nutrition) and disease-management programs (properly managing diabetes, for example, can help avoid serious, and expensive, complications later).
Working with existing community resources. Reach out to local offices of the American Cancer Society, the March of Dimes, the Red Cross and health departments, Ahlers suggested. ''That is part of those folks' missions — to provide community information and support.''
Building a culture of health promotion. Set policies that encourage employees to stop smoking, to eat better and to exercise more, Ahlers said. Ask employees to bring healthy snacks, instead of doughnuts or cake, for meetings and celebrations. Layout a walking path, either inside or outside.
''These things are no-cost or low-cost items a company can implement very easily,'' she said.
A good corporate program starts at the top, with the chief executive buying into the idea of healthy lifestyles, then filters throughout the company, with structured programs, such as stop-smoking or weight-loss programs, said Dr. Tim Stover, medical director of the Akron General Health & Wellness Centers.
It's also important to track results, he said, to see whether absenteeism, sick time and medical expenses have actually decreased.
Finally, Stover said, companies must make the facilities and programs available to employees during the workday.
''The company sends the message that this is valuable to both the employee and the company by making it available on work time,'' he said.
Tracy Wheeler can be reached at 330-996-3721 or tawheeler@thebeaconjournal.com.
Business is all about the bottom line: Reduce costs. Maximize profits.
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