Originally presented at George Washington University's and ICF International's Research and Evaluation Forum (#GWICF2015), Dr. Ron Goetzel demonstrates why employers should look at value on investment (VOI) rather than return on investment (ROI) of workplace health promotion. Dr. Goetzel goes through:
• The severity and cost of obesity
• Why the workplace is the optimal environment for health programs
• Evidence and examples of how workplace health programs can bring VOI
• How employers can get VOI
To watch the video of Dr. Goetzel presenting these slides at the GW/ICF Research and Evaluation Forum, visit: http://www.icfi.com/ObesityPreventionRonGoetzel
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What is the Evidence and Return on Investment (ROI) of Obesity Prevention and Control in Worksite Settings?
1. What is the Evidence and Return on Investment
(ROI) of Obesity Prevention and Control in
Worksite Settings?
Ron Z. Goetzel, Ph.D., Johns Hopkins University - Truven Health Analytics
GW-ICF Research and Evaluation Forum -- January 21, 2015 --
Washington, DC
#GWICF2015
2. Q: What problem are we trying to solve?
A: Spending a lot of money on sick care!
• The United States spent $3.056 trillion in
healthcare in 2014, or $9,596 for every man,
woman and child.
• Spending by sector
• Private health insurance - $1.102 billion
• Medicare - $615.9 billion
• Medicaid - $507.2 billion
• Out of pocket -- $338.1 billion
• Health expenditures as percent of GDP:
7.2 % in 1970
17.6% in 2014
19.3% in 2023 (projected)
Source: Sisko et al., Health Affairs, 33:10, September 23, 2014, 1841-1850
#GWICF2015
3. WHY IS HEALTH CARE SO EXPENSIVE?
Source: K.E. Thorpe, "The Rise in Health Care Spending and What to Do About It," Health Affairs 24, no. 6 (2005): 1436-1445; and K.E. Thorpe et al.,
"The Impact of Obesity on Rising Medical Spending," Health Affairs 23, no. 6 (2004): 480-486.
Innovation/advancing technology
(pharmacologic, devices, treatments)
• Newborn delivery costs – five-fold increase
from 1987-2002
– NICU, incubators, ventilators, C-sections
• New/better medicines for treating disease
– Depression (SSRI introduction – 45% treated in
1987 to 80% treated in 1997
– Allergies (Claritan, Allegra, …)
• New treatment thresholds
– Blood pressure
– High blood glucose
– Hyperlipidemia
Rise in spending for treated diseases (37%)
Ken Thorpe
#GWICF2015
4. WHY IS HEALTH CARE SO EXPENSIVE?
(THORPE - PART 2)
• About ¾ of all health care
spending in the U.S. is
focused on patients who
have one or more chronic
health conditions
• Chronically ill patients only
receive 56% of clinically
recommended preventive
health services
And 27% of the rise in
healthcare costs is
associated with increases
in obesity rates…
Rise in the prevalence of disease (63%)
#GWICF2015
6. ENVIRONMENTAL CORRELATES OF OBESITY
More driving
• Rise in car ownership
• Increase in driving shorter distances
• Less walking and bicycling
At home, more convenience
• Increase use of “labor saving” devices
• Increase in ready-made foods
• Increase in television viewing, computers, and video games
At work
• Sedentary occupational fields (“knowledge workers”)
In public
• More elevators, escalators, automatic doors and moving
sidewalks
#GWICF2015
7. Opportunities for Health Promotion: Workplace
-- 156 Million Americans at Work Each Day
Certain policies,
procedures and practices
can be introduced and
organizational norms can
be established
Workplaces contain a
concentrated group of
people who share
common purpose and
culture
Financial or other types of
incentives can be offered
to gain participation in
programs
Workplace programs can
reach large segments of
the population not
exposed to and engaged
in organized health
improvement efforts
Social and
organizational
supports are available
Communication with
workers is
straightforward
US Bureau of Labor Statistics, December 2014
#GWICF2015
9. IT SEEMS SO LOGICAL…
If you improve the health and well being of your
employees…
…quality of life improves
…health care utilization is reduced
…disability is controlled
…productivity is enhanced
#GWICF2015
10. What Is The Evidence Base?
• A large proportion of diseases and disorders is preventable. Modifiable health risk
factors are precursors to a large number of diseases and disorders and to
premature death (Healthy People 2000, 2010, Amler & Dull, 1987, Breslow, 1993,
McGinnis & Foege, 1993, Mokdad et al., 2004)
• Many modifiable health risks are associated with increased health care costs
within a relatively short time window (Milliman & Robinson, 1987, Yen et al., 1992,
Goetzel, et al., 1998, Anderson et al., 2000, Bertera, 1991, Pronk, 1999)
• Modifiable health risks can be improved through workplace sponsored health
promotion and disease prevention programs (Wilson et al., 1996, Heaney &
Goetzel, 1997, Pelletier, 1991, 1993, 1996, 1999, 2001, 2005, 2009, 2011)
• Improvements in the health risk profile of a population can lead to reductions in
health costs (Edington et al., 2001, Goetzel et al., 1999, Carls et al., 2011))
• Worksite health promotion and disease prevention programs save companies
money in health care expenditures and produce a positive ROI (Johnson &
Johnson 2002, Citibank 1999-2000, Procter and Gamble 1998, Chevron 1998,
California Public Retirement System 1994, Bank of America 1993, Dupont 1990,
Highmark, 2008, Johnson & Johnson, 2011)
#GWICF2015
23. BMI BREAKDOWN BY CATEGORY
25%
44%
22%
7%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Normal
BMI < 25
Overweight
BMI 25-30
Class I
BMI 30-35
Class II
BMI 35-40
Class III
BMI 40+
PercentageSampleInEachBMI
Category
#GWICF2015
24. PEPSICO – OVERWEIGHT / OBESE ANALYSIS (N=11,217)
*At least one difference significant at the 0.05 level
Source: Henke RM, Carls GS, Short ME, Pei X, Wang S, Moley S, Sullivan M, Goetzel RZ. The Relationship between Health Risks and Health and Productivity Costs
among Employees at Pepsi Bottling Group. J Occup Environ Med. 52, 5, May 2010.
Difference between combined overweight/obese categories and normal weight is displayed
Diff =
29%,
$613*
Diff =
58%,
$111*
Diff =
25%,
$987
Diff =
10%,
$28
Diff =
7%,
$49
Diff =
26%,
$186*
• 74% of the
sample is
overweight
or obese
#GWICF2015
25. NHLBI MULTI-CENTER STUDY: ESTIMATED ANNUAL COSTS
OF HEALTHCARE UTILIZATION, ABSENTEEISM, AND
PRESENTEEISM BY BMI CATEGORY
$1,416
$1,180
$2,034
$229
$1,402
$918
$1,544
$155
$182
$1,200
$872
$1,535
$149
$178
$219
$0 $500 $1,000 $1,500 $2,000 $2,500
Presenteeism
Absenteeism Days
Hospital Admissions
Emergency Room
Visits
Doctor Visits
Normal
Overweight
Obese
*
*
*
*
*
* P < .05
Source: Goetzel RZ, Gibson TB, Short ME, Chu BC, Waddell J, Bowen J, Lemon SC, Fernandez ID, Ozminkowski RJ, Wilson
MG, DeJoy DM. A multi-worksite analysis of the relationships among body mass index, medical utilization, and worker
productivity. J Occup Environ Med. 2010 Jan;52 Suppl 1:S52-8.
#GWICF2015
31. SUMMARY RESULTS AND TEAM CONSENSUS
Outcome
Body of
Evidence
Consistent
Results
Magnitude of
Effect Finding
Estimated Risk 15 Yes Moderate Sufficient
Healthcare Use 6 Yes Moderate Sufficient
Worker Productivity 10 Yes Moderate Strong
#GWICF2015
32. WHAT ABOUT ROI?
CRITICAL STEPS TO SUCCESS
Reduced Utilization
Risk Reduction
Behavior Change
Improved Attitudes
Increased Knowledge
Participation
Awareness
Financial ROI
#GWICF2015
33. HEALTH AFFAIRS ROI LITERATURE REVIEW
Baicker K, Cutler D, Song Z. Workplace Wellness Programs Can Generate
Savings. Health Aff (Millwood). 2010; 29(2). Published online 14 January 2010.
#GWICF2015
34. RESULTS - MEDICAL CARE COST SAVINGS
Description N Average ROI
Studies reporting costs and
savings
15 $3.37
Studies reporting savings only 7 Not Available
Studies with randomized or
matched control group
9 $3.36
Studies with non-randomized or
matched control group
6 $2.38
All studies examining medical
care savings
22 $3.27
#GWICF2015
35. RESULTS – ABSENTEEISM SAVINGS
Description N Average ROI
Studies reporting costs and
savings
12 $3.27
All studies examining
absenteeism savings
22 $2.73
#GWICF2015
36. The Dow Chemical Company
An Environmental
Obesity Prevention
Program at The Dow
Chemical Company
NHLBI: 5 R01 HL079546-05
#GWICF2015
38. The Dow Study - Interventions at All Sites #GWICF2015
39. The Dow Study - Interventions at High Intensity Sites #GWICF2015
40. The Dow Study: Health Behaviors (T1–T3):
High Risk Category
#GWICF2015
41. The Dow Study: Biometric Values (T1–T3) – Cohort Data
#GWICF2015
42. Consistent Improvement in
High-Priority Risk Since 2004
Baseline.
Between 2004 and September 2011
high priority risks:
• the average risk prevalence is
improving (see graph).
• a 22 percentage point (28%)
reduction in high risk people.
• a 23 percentage point (20%)
increase in low risk people in
these three categories.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2004 2005 2006 2007 2008 2009 2010 2011
Positive Trend in Targeted
Health Risks
BMI, Tobacco, Physical Activity
High Risk
Low Risk
AvgRiskPrevelance
DOW RESULTS: IMPROVING EMPLOYEE HEALTH
#GWICF2015
43. DOW RESULTS
• 2004 – 2011
– Saved over $120 Million in US healthcare costs
via Health Strategy
• In 2011
– 9% better health risk profile than comparison companies
– 17% fewer chronic health conditions
#GWICF2015
44. Identifying “Best Practices” in Workplace
Health Promotion: What Works?
Source: Goetzel RZ, Shechter D, Ozminkowski RJ, Reyes M, Marmet PF, Tabrizi M, Chung
Roemer E. Critical success factors to employer health and productivity management efforts:
Findings from a benchmarking study. Journal of Occupational and Environmental Medicine.
(2007) February; 49:2, 111-130.
#GWICF2015
45. What Is Needed to Achieve Success?
1. Leadership commitment
2. Specific goals and expectations
3. Healthy company culture
4. Employee driven program design
5. Excellent communication
6. Smart incentives
7. Effective screening and triage
8. State-of-the-art interventions
9. Effective implementation
10. Measurement and evaluation
#GWICF2015
47. Workplace Health Promotion Programs Work –
If You Do Them Right!
Financial
Outcomes
Health
Outcomes
QOL and
Productivity
Outcomes
Cost savings, return on
investment (ROI) and net
present value (NPV).
Where to find savings:
Medical costs
Absenteeism
Short term disability
(STD)
Safety/Workers’ Comp
Presenteeism
Adherence to evidence
based medicine.
Behavior change, risk
reduction, health
improvement.
Improved “functioning” and
productivity
Attraction/retention –
employer of choice
Employee engagement
Corporate social
responsibility (CSR)
Balanced scorecard
#GWICF2015
48. To watch Dr. Goetzel’s presentation online,
visit: www.icfi.com/ObesityPrevention-
RonGoetzel
#GWICF2015