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The study by Baiker et al entitled Workplace Wellness Programs Can Generate Savings(1) looked at 36 peer-reviewed studies and found that the average return on investment (ROI) for health care costs was 3.27 for companies that employed wellness programs. So for every dollar invested in these programs, the company’s saw a return of more than $3.

But wait there’s more. This study also looked at absenteeism, where there was additional savings: an average ROI of 2.73.

As more research is being done, it’s becoming clear that appropriately developed wellness or prevention programs can have a profound impact on a company’s medical and productivity costs. It’s all about the “value of health.” This study shows we need to look beyond the direct medical costs to the large amount also spent through lost productivity. Only by recognizing both areas we can identify the true value of good health.

In fact, our Vice Chairman at U.S. Preventive Medicine, Ron Loeppke, MD ,and others have long been challenging us all to look beyond the medical costs to the complete costs of poor health. As can be seen in the slide below, which he developed from studies (2) he and others published, 70% of the costs associated with poor health were found in the productivity areas, while only 30% were medical costs. These productivity areas -- absenteeism, being away from work and presenteeism ( being less productive while at work) – should concern all employers. As we seek to sell our goods and services locally, nationally and even globally, the effects of a non-productive workforce threaten a company’s competitiveness.