The Business Value of Health: Linking CFOs To Health And Productivity
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The Business Value of Health Linking CFOs to Health and Productivity IBI Research - 2006 IBI CFO Research urce: The Business Value of Health: Linking CFOs to Health and Productivity , Integrated Benefits Institute, 2006
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In 2006, the Integrated Benefits Institute pursued further research on how senior financial executives link health and productivity. In collaboration with CFO Research Services (a unit of CFO Publishing Corp.), IBI surveyed and analyzed results from 343 CFOs, financial directors, executive and senior vice presidents of finance and vice presidents of finance. The study was funded by Novartis, a member of the IBI Board of Directors.
Transcript of The Business Value of Health: Linking CFOs To Health And Productivity
The Business Value of Health
Linking CFOs to Health and Productivity
IBI Research - 2006
IBI CFO Research
Source: The Business Value of Health: Linking CFOs to Health and Productivity, Integrated Benefits Institute, 2006
Key Insights:
CFOs want to control health plan costs but they also seek to manage all health-related costs (e.g., medical, absence, disability, etc.).
6 in 10 agree that the costs of ill health can’t be shifted Most know that ill health affects absence, presenteeism and bottom line Few get all the lost-time financial impact information they need They respond to lost time through expensive options If they had the lost-time information they value, CFOs would use that
information to manage absence and presenteeism, weigh the impact of lost time against healthcare program costs, and use it to evaluate the effectiveness of their healthcare plans
The full study is available to members of IBI. Commentary is available in Notes view.
Purpose: 2nd of two CFO surveys identifies their willingness to consider lost productivity as a function of ill health and identifies the lost-productivity information important to them
IBI CFO Research
1
1.5
2
2.5
3
Controlhealth plan
costs
Manage allhealth-relatedcosts
Improve EEhealth
Shift morecosts
Quantify HCimpact on
productivity
Improvebenefits
Expandbenefits
Rating
No difference
CFO Healthcare Management Objectives for Next Two Years
Source: The Business Value of Health: Linking CFOs to Health and Productivity, Integrated Benefits Institute, 2006
The Impact of Ill-Health
0%
25%
50%
75%
100%
Higher medicalcosts
Trouble focusingon job
More absenceaffecting
operations
Affects bottomline beyondhealthcare
Adversely affectsother benefits
costsAgree Strongly agree
96%90%
86% 84%
71%
Source: The Business Value of Health: Linking CFOs to Health and Productivity, Integrated Benefits Institute, 2006
Are CFOs Getting Information?
• Absence– 51% ever get reports on occurrence
– 22% get reports on financial impact
• Presenteeism– 22% ever get reports on occurrence
– 8% get reports on financial impact
Source: The Business Value of Health: Linking CFOs to Health and Productivity, Integrated Benefits Institute, 2006
Lost Work Time Criticality
32%
17%
51%
0%
20%
40%
60%
Actual > Critical Actual = Critical Actual < Critical
49%
Source: The Business Value of Health: Linking CFOs to Health and Productivity, Integrated Benefits Institute, 2006
How Companies Respond to Lost Time
• Absence– Overtime– Temporary Workers– Work Undone– Deadlines Missed– Bigger Staff
• Presenteeism– Overtime– Temporary Workers– Deadlines Missed– Work Undone– Bigger Staff
How CFOs Quantify Health-related Lost Productivity
29%
22%19%
13%
16%
0%
10%
20%
30%
Opportunitycost (e.g., lost
revenue)
Time lost fromwork
Staffing cost Wagereplacement
cost
All othermeasures
Source: The Business Value of Health: Linking CFOs to Health and Productivity, Integrated Benefits Institute, 2006
How CFOs Would Use Lost-Productivity Information
65%70%73%75%75%
0%
20%
40%
60%
80%
Consideragainst health
plan costs
ReduceAbsence
Manage allhealth-related
costs moreclosely
Examinebusiness
benefits ofhealth plans
Reducepresenteeism
Source: The Business Value of Health: Linking CFOs to Health and Productivity, Integrated Benefits Institute, 2006
