Cutting healthcare can cut productivity

As organizations try to survive during an economic recession, many organizations are trying to cut costs, but trying to increase their productivity.

Many organizations assume that they can cut costs by altering employee health and wellness plans.  For example, some employers try to save on their coverage for their employees by raising deductible on drug plans. Doing so may not be a smart idea, instead of putting the employee at a disadvantage, the employer will face the consequences.   

A case study found that when the employer increased the deductible that the organization’s productivity fell.  The employers assumed that since the employees were buying drugs that were mandatory to their health that despite the increased deductible they would purchase the drugs.  To the contrary, employees could not afford their medications and were no longer purchasing them.  

The study found that all major pharmaceuticals dropped immensely.  For example, anti-inflammatory drugs saw the biggest decline, about 45% .  Drugs used to treat more serious conditions declined too, hypertension drug use dropped to 26%, antidepressant use declined 26% and, anti-diabetic drug use fell 25%. Even though these drugs were vital to life, employees still did not go out and buy what they needed.  

Employees ignored their medical conditions and their health suffered, leading to an increase in acute events, which required hospitalization.  Employees were no longer contributing to the productivity and their co-workers productivity fell as well.  

The company assumed by saving money on their drug plan they would be better off, however, the results were the complete opposite, the organization’s productivity fell.   

Investing in long term sustainable solutions is better for the company and its employees.  Workplace drug plans and health and wellness programs should not face the axe, these programs allow employees to attain their optimal health level and in turn be a valuable asset to an organization.

Read more here

Posted by: suhujitha on 2009-05-26 13:11:41

Subscribe to the feed   Direct Link to this post

Next post: Dopamine impacts your willingness to work 2012-05-12 10:04:13

Don't forget: there is a search box on every page!

Recent Posts:

View Your Cart?

Call us for more information: In Toronto and Area call 647.723.6381 or call 1.866.395.8904 Toll-free. Dial answer group (ext) 3.

Check out our Amazon Reading List!