"Economic Development: What's Health Got to Do With It?"

The Challenge: Workforce Health

The poor health of U.S. citizens is creating economic challenges for not only the country’s health system, but for American business. The number of people with chronic conditions in the U.S. is rapidly rising. In 2000, 125 million Americans had one or more chronic conditions and by the year 2030, the number of Americans with chronic conditions will increase by 37 percent, an increase of 46 million people.

To address the challenge workforce health has on the business bottom line, companies are focused on developing or enhancing their wellness plans and employee health incentives. The average direct medical cost to care for an employee with diabetes is approximately $13,000 a year – more than five times the cost for a non-diabetic employee. Recent research also shows that, on average, for every one dollar they spend on worker medical/pharmacy costs, employers absorb two to three dollars of health-related productivity costs, largely in the form of “presenteeism.”  Increasingly, the health and productivity of local workforces are being recognized as relevant factors in a cohesive economic development strategy.

The Forum

On April 24, 2012, The Free Clinic hosted a forum gathering community leaders in healthcare, business, finance, human resources, and other professions to dicuss the interplay between workforce wellness and economic development.  The video below showcases highlights from the 2012 Forum.

The Research

Visit our bibliography page for a list of literature exploring the impact of chronic health conditions on individuals, families and employers; government and business-backed efforts to improve population health; and insurance-based initiatives to reward wellness outcomes.

Did You Know...?

• 75% of chronic disease is caused by four factors: tobacco, food choices and portion size, physical inactivity and stress.
• Place matters.  There is over a 20 year life expectancy difference between Cleveland's Hough neighborhood and the suburb of Lyndhurst, a mere 5 miles away.
• 60% of Americans are working below maximum productivity.
• Cities and states across the nation are pitching positive health outcomes as a way to attract and retain businesses.
• For every $1 we spend on direct medical care and medication, we spend $2.30 on the effects of presenteeism and absenteeism.

How The Free Clinic Promotes Workplace Wellness

Since hosting its first forum on workforce wellness and economic development, The Free Clinic has implemented several best practices, including:

• Through its health insurance plan, The Free Clinic employees receive free gym memberships.  Their spouses and dependents over age 18 can also receive a free gym membership.
• The Free Clinic's health insurance plan also offers onsite wellness coaching to enrolled employees as well as coordinated health challenges.
• The Free Clinic employees who participate in a specified physician network and attend annual wellness visits can receive discounted premium rates on their health plan.
• In summer 2012, The Free Clinic built a community garden in its backyard as part of its wellness program.  Employees can now plant and harvest their own fresh produce.