Well Known

Gordian Health Solutions’ Roger Reed dispels some myths about corporate wellness programs and tells us how they can play a role in attracting and maintaining talent.

“It is pretty clear that Americans are living in a time of uncertainty, anxiety and fear. We are worried about the economy and the affordability of everything”
-Roger Reed of Gordian Health Solutions

HRM. What are the challenges presented to organizations looking to keep health awareness alive in the workplace – particularly those with limited staff and resources?
Roger Reed. This is a great question and one that may not have been on the radar a few years ago. Keeping employees and their families healthy has become a priority for employers who want to continue to provide health benefits to employees. We all want affordable healthcare. Challenges employers face typically include not knowing where to begin, not having enough money and, of course – lack of staff and other resources. In addition, many employers find that employees are concerned about privacy and may be sceptical of the employer’s motive.

Employers with limited resources should look to their local communities for assistance. Many non-profit organizations provide community or worksite services at low or no cost and can help employers sort out health priorities. Some great places to start are the YMCA, YWCA, American Lung Association, American Heart Association, Diabetes Association and local hospitals and providers.

HRM. Often, a company-wide cultural shift is required to really achieve improving the health of an organization’s employees. How can this be reached and what cultural benefits can this lead to?
RR. Cultural shift begins in the corner office with executives articulating the concern for the health and wellbeing of their employees and families. It’s also okay to be honest about the business case – continuing to provide health benefits means making them more affordable for everyone by controlling the demand for healthcare services. The employer must carefully outline the vision and the plan for health improvement, recognizing that employees themselves should help with this. Lastly, and most importantly, management must “walk the talk”. They have to be engaged themselves and demonstrate commitment.

Cultural shift means ongoing success and program sustainability as well as long-term support for behavioural change. Overtime, healthy behaviour becomes the norm, rather than the exception, and maintenance becomes the goal, rather than risk identification.

HRM. Can wellness programs have an effect on worker satisfaction and productivity outside of the obvious health benefits?
RR. Indeed, data suggest the affirmative in both cases. Reports from multiple employers such as King County in Washington, Agora, Inc. in Baltimore, the US Department of Energy's Brookhaven National Laboratory [1] and a national literature review by Goetzel and Ozminkoski [2] confirms that satisfaction and productivity can be improved as a result of worksite wellness initiatives. In fact, many employers are finding wellness programs to be integral to their recruiting and retention strategies. Younger generations are seeking employers who support healthy lifestyles and provide ways for them to engage in physical activity.

HRM. We are seeing a shift from reactive healthcare to preventative wellness programs. What can you tell us about this change and the reasons behind it?
RR. For decades, employers have been paying the bills for healthcare on behalf of employees. The cost of healthcare, much like the balance-of-payments deficit, is subject to Stein’s law, “if something cannot go on forever, it will stop”. Employers simply cannot continue paying double digit increases for healthcare and remain in business. Employers cannot raise their prices at a rate fast enough to cover the cost of healthcare. Instead, margins are eroded, equipment purchases are postponed and benefits are reduced or capped.

Strategies such as provider discounts, managed care and plan designs that once held the promise of containing costs have proven ineffective. Employers have now turned their attention to the single largest contributor to healthcare costs – unhealthy lifestyles and habits. Estimates put unhealthy lifestyles as a contributing factor for about 40% of all disease, and in a 2004 study, obesity and diabetes alone were said to account for as much as 25% of health cost increases. [3]

Employers have identified wellness and lifestyle improvement programs as the next most viable strategy to hold down healthcare costs. They are moving to upstream solutions rather downstream.

HRM. Can well-implemented wellness solutions be a measure of company success? Can they be a factor in attracting and maintaining talent?
RR. Gordian Health Solutions has worked with employers all over the country who are beginning to build wellness objectives into the corporate strategic plan and make management accountable for hitting these targets. More and more employers view worksite wellness and worksite clinics as powerful recruiting tools. A survey by Buck Surveys released in October found worksite wellness programs growing globally with 40% of employers in Europe, Asia and Africa now offering them. [4]

Generally, healthy companies are better at attracting healthy workers and are better run organizations with higher per capita output. Companies with low healthcare costs, low disability costs and low worker’s compensation costs are able to compete more effectively in the global markets by holding down costs and prices and have more money available for growth and R&D.

HRM. Given the current market situation, what do you think the impact is likely to be on rising healthcare costs, employee health and corporate wellness solutions?
RR. It is pretty clear that Americans are living in a time of uncertainty, anxiety and fear. We are worried about the economy and the affordability of everything – food, gas, health insurance, utilities and home ownership. Healthcare, while perhaps not at the very top of the current list of consumer concerns, is near the top and will continue to be a concern to most Americans. According to the October 2008 Employee Benefit Research Institute study, “The 2008 Health Confidence Survey: Rising Costs Continue to Change the Way American Use the Healthcare System”, most Americans, who feel that the US healthcare system is broken and needs reform, know that they need to play a larger role in taking care of themselves and are willing to engage in programs that will improve their health. [5] PricewaterhouseCoopers reported in a survey this month that employers would rather manage the healthcare cost problem with wellness and disease management rather than shift more cost to employees. [6]

No matter the outcome of the election, I would look for more tax incentives to employers who promote health at the worksite and new benefit plan designs that connect the dots between health and wealth. Health plans are already integrating wellness components into their offerings and more and more employers are asking for them. Look for more employers to implement wellness as a business solution.

Roger Reed is Chief Advocacy & Engagement Architect at Gordian Health Solutions. He has more than 30 years experience in the healthcare industry and is a nationally recognized leader and strategist in health promotion and wellness. A registered nurse, family nurse practitioner and physician’s assistant, he was author and project director of two W.K. Kellogg Foundation studies that are considered benchmarks in the field of health promotion.

Prior to joining Gordian, Reed was a partner in SLR Ventures Inc., a healthcare venture company that founded five successful healthcare-related companies during a span of seven years. His previous experience includes family practice, geriatrics, substance abuse treatment, health promotion management and research, healthcare administration and healthcare network development.

References:
[1] Krisberg K, Nations Health. Employers making room for health promotion in workplace: incentives, support yield health results. American Public Health Association. 2007; vol. 37.
[2] Goetzel RZ, Ozminkowski RJ. The health and cost benefits of work site health-promotion programs. Annu Rev Public Health. 2008; vol. 29, pp. 303–323.
[3] Thorpe KE, Florence CS, Howard DH, Joski P. The impact of obesity on rising medical spending. Health Tracking. October 20, 2004, pp. 480-485.
[4] Buck's Global Survey Resources, 500 Plaza Drive, Secaucu, New Jersey, 07096-1533 800-887-0509. The report can be ordered online at www.bucksurveys.com.
[5] Employee Benefit Research Institute. The 2008 health confidence survey: rising costs continue to change the way Americans use the healthcare system. October 2008.
[6] PricewaterhouseCoopers Health Research Institute. Study: small employers less happy with health plans. Atlanta Business Chronicle. October 14, 2008.