The high cost of health

• Published in: CMA magazine Vol. 69; no. 3; p. 12
• Main Authors: Downey, Angela M, Kudar, Randolph P
• Format: Magazine Article
• Language: English
• Published: Hamilton Society of Management Accountants of Canada 01-04-1995
• Subjects: Absenteeism; Contract negotiations; Cost analysis; Cost control; Costs; Dietitians; Employee benefits; Employees; Health aspects; Health care expenditures; Health care policy; Health insurance; Health promotion; National health insurance; Occupational health & safety; Prescription drug plans; Prevention; Productivity; Wellness programs; Canada; US
• ISSN: 1926-4550

Employers may soon be faced with an increasing financial responsibility for the health and well-being of their employees. Health promotion, often called wellness, has been inspired by its ability to reduce the explicit costs of health in the US environment. Canadian firms are countering increased costs by encouraging employees to seek a cheaper supplier of drugs and benefits, rather than focusing on methods to assist employees in changing their lifestyles toward a state of better health. The very nature of prevention in the quality area has drawn attention to the fact that management must focus its attention on the business as a total system and not limit itself to maximization of one part at the expense of another. What is needed is a classification approach for wellness in the workplace that reflects the nature of the issue and, as well, captures all the cost elements that are relevant to the issue. In addition to classifying and measuring the cost elements of this issue, it will be necessary to identify and measure possible outputs that can identify progress toward wellness in a firm.