Obesity and Lost Productivity
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Obesity and Lost Productivity Thomas Parry, Ph.D. President Integrated Benefits Institute
description
Obesity and Lost Productivity. Thomas Parry, Ph.D. President Integrated Benefits Institute. The Costs of Obesity*. * Preliminary results – not for citation/publication. The Impact of Co-Morbidity*. * Preliminary results – not for citation/publication. Obesity and Co-Morbidity*. - PowerPoint PPT Presentation
Transcript of Obesity and Lost Productivity
Obesity and Lost Productivity
Thomas Parry, Ph.D.President
Integrated Benefits Institute
The Costs of Obesity*Total Cost of Health Conditions per 1000 ee
0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000
I rritable Bowel
Sleeping Problem
Back\ Neck Pain
Anxiety
GERD
Arthritis
Hypertension
Obesity
Depression
Allergy
Absenteeism per 1000 FTE Presenteeism per 1000 FTE Medical per 1000 Rx per 1000
* Preliminary results – not for citation/publication
The Impact of Co-Morbidity*Total Lost Days per Year
by Number of Comorbidities
2
58
12 1314
20
2629
37
1 2 3 4 5 6 7 8 9 10 or more
Number of Comorbidities
* Preliminary results – not for citation/publication
Obesity and Co-Morbidity*
1 co-morbidity Second
2 co-morbidities Second
3 co-morbidities Second
4 co-morbidity Second
5 co-morbidities Second
6 co-morbidities Second
# of Co-Morbidities Obesity Ranking
* Preliminary results – not for citation/publication
Why Productivity?
Hewitt’s 2008 Employer Health Care Survey
• 508 employer participants
• Productivity: 2nd-most important business issue
• Health and productivity measurement key employer challenge
• The need to integrate programs across silos
The Real Problem: The Full Cost of Poor Employee Health
The CFO’s View
Linking Health, Productivity & the Bottom Line
Strong link61%
Weak link7%
Moderate link32%
Source: CFO Survey, IBI, 2002
The Impact of Ill-Health
0%
25%
50%
75%
100%
Highermedical
Troublefocusing on
job
More absence Affectsbottom line
beyondhealthcare
Adverselyaffects other
benefits costs
Need largerworkforce
Agree Strongly agree
96%90%
86% 84%
71%
47%
Source: The Business Value of Health: Linking CFOs to Health and Productivity, IBI, 2006
Quantifying Lost Productivity
What is the real cost of people being away from work?
Lost Productivity Costs a Function of ….
• Ability to replace workers
• Time value of output
• Degree of team work
Real Costs/Program
$0
$1,000
$2,000
$3,000
$4,000
Ave. Cost/FTE
EE GH WC STD LTD Incid.Absn.
FMLA
Payments Lost Productivity*$3,090
$178
$2,505
$392$660
$1,796
* Nicholson Lost-productivity modifier
The MGM MIRAGE Case StudyThe MGM MIRAGE Case Study
Making the Business Case for HPM to Senior Executives
IBI Health & Productivity Snapshot Results
Absence
Presenteeism
1.8 lost days per FTE/Year
6.2 lost days per FTE/Year
Lost worktime = 8 days per FTE/Year of $2,598 per FTE/Year in Lost Productivity
The Bottom Line
Savings $18.8 MM Wall-Street Multiple 13X Outstanding Shares 292 M Gain in Stock Price $ .84/share Principal Owner (56%) $137.4MM
One Day of Productivity Improvement
