Illustrating the Return on Investment (ROI) of a Westfield Health Plan

Transcription

1 Illustrating the Return on Investment (ROI) of a Westfield Health Plan

2 The Key Drivers of Return on Investment Return on investment Reduced costs of absence Employee value placed on health plan Sick pay, lost production, other indirect costs Price of skipping routine check-ups, and late diagnosis / intervention NHS cuts & rising waiting times High private healthcare fees & rising NHS charges Financial pressures causing patients to delay check-ups and treatment

3 The cost of absence to the UK economy

4 The cost of sickness absence. 131 million days were lost due lost to sickness absence in 2013, costing the UK economy 100bn Health issues are seen as the most common factor causing employees to fail to perform to their potential capacity at work. Employers face a yearly bill of around 9 billion for sick pay and associated costs, and taxpayers fund around 13 billion a year on health-related sickness benefits and 2 billion a year in healthcare, sick pay reimbursement and other taxes. (ONS, 2014) The overall cost to employers of sickness absence is 609 per employee per year. (CIPD, 2014) There are too few drivers to keep people in work. After 20 weeks of sickness absence, the vast majority of individuals eventually fall into benefits. Around 300,000 people a year fall out of work and into the welfare system because of health-related issues. (ONS & Dame Carol Black, 2014) Nearly 1 million UK employees are on sick leave for a month or more each year. Musculoskeletal disorders make up a third of long-term absence (33%) and (20%) were due to mental health issues. The group taking the largest share of long-term absence was the year old group. (ONS, 2014) Minor illness is the most common cause of short-term absence, followed by musculoskeletal injuries, back pain and stress. The most common causes of long- term absence are acute medical conditions / treatment, stress, musculoskeletal disorders, mental ill-health and back pain. (CIPD, 2014)

5 Number of working days lost due to sickness absence. Minor illnesses were the most common reason given for sickness absence, but more days were lost to back, neck and muscle pain than any other cause. The most common reason given for sickness absence in 2013, accounting for 30% was minor illnesses, which cover sickness such as cough and colds. This type of illness tends to have shorter durations and accounted for around 27.4 million days lost. The greatest number of days lost was due to musculoskeletal problems at 30.6 million days lost. Mental health problems such as stress, depression and anxiety also contributed to a significant number of days of work lost in 2013 at 15.2 million days. Source; Office of National Statistics; Sickness Absence in the Labour Market, February 2014

6 A Health plan is a tool for sickness absence A Health Plan can provide an active tool to aid sickness absence in the workplace and can assist employees with everyday preventative health expenses, enabling them to access faster diagnosis, private treatment and rehabilitation when necessary. The recognition of facilitating early intervention is key. Benefits such as Counselling (including CBT) and Therapies can actively tackle issues such as mental health, back pain and musculoskeletal disorders, all of which are key drivers for sickness absence. A Health Plan can complement and support a company s existing sickness strategy. More companies are starting to use some form of health insurance scheme to tackle absence rates. A Health Cash Plan, can produce economic benefits across all sizes and sectors of business. Addressing the direct causes of absence within a workplace, can make a difference to the health of an individual but also be cost effective for the organisation.

7 Mental Health Mental Health is one the biggest threats to the wellbeing of business and society. Every organisation in Britain is affected by mental ill health in the workforce. At any one time, one worker in six will be experiencing depression, anxiety or problems relating to stress. (Centre for Mental Health) Stress, depression or anxiety accounted for 15.2million days lost. On average days lost per case was 24 days. (ONS) Musculoskeletal Disorders Musculoskeletal disorders and back pain are one of the main causes of both short and long term sickness absence a trend which has not changed over the past 5 years. (CIPD) 30.6million days were lost through MSDs problems the highest number of days lost. On average days lost per case was 17 days. (ONS) MSDs and back pain are more common causes of absence for manual workers, while stress is more common for nonmanual workers. (CIPD) Dental In the last 5 years, it is estimated that 2 million employees have taken time off work because of poor oral health, which can be reduced if employers work with staff to help reduce the time lost through dental problems. (British Dental Health Foundation, 2013) Over 400,000 employees took time off work due to oral health, at an estimated cost to businesses of 37m. (Health Insurance Magazine, 2013)

8 Early intervention. The longer someone is off work, the harder it is to get them back to work. Much absence is comparatively mild illness which is compatible with work and may indeed be improved by work. Therefore, it is more effective and costeffective to prevent people with common health problems going on long term sickness absence. (Dame Carol Black & David Frost; Health at Work Review, 2011)

9 The importance of routine check-ups and early diagnosis/ intervention. Optical & Dental Regular check ups will help prevent longer term problems from occurring and also help detect existing problems as early as possible, potentially avoiding extended employee absence. Evidence shows a direct correlation between gum diseases and more serious medical conditions, such as heart disease and diabetes. (British Dental Association) Regular check ups at the Opticians can catch underlying health conditions early, such as blood pressure, diabetes, high cholesterol reducing the risk to employee wellbeing and the potential for increased absence. They can also detect specific eye conditions, such as cataracts, glaucoma and eye cancer which some can be treatable if caught early enough. Optical benefit may help a business to meet its obligations under the Health & Safety (Display Screen Equipment) Regulations 1992

10 The importance of routine check-ups and early diagnosis/ intervention. Musculoskeletal Disorders Early access to Physiotherapy is cost effective and offers clinical benefits to those with Musculoskeletal disorders of the back, neck and joints. (Chartered Society of Physiotherapy) A further study Journal of primary care; Referral of patients with lower back pain to physical therapy reported that patients who received physiotherapy within 14 days of seeing their GP had a 50% decrease in costs for surgical procedures. (Journal of primary care; Referral of patients with lower back pain to physical therapy, 2012) Early intervention in the form of vocational rehabilitation are effective in getting people with common MSDs back to work. (Dame Carol Black & David Frost; Health at Work Review, 2011)

11 The impact of mental health in the workplace. Mental Health is a serious problem for businesses and for the economy. All too often, the first the employer know about it is when the employee takes time off, which can have a huge impact. The challenge for employers is to recognise that mental ill-health is a growing problem that needs to be addressed if productive and healthy workforces are to be maintained. Employers have a responsibility to eliminate practices or cultural habits within their organisation that cause staff to be stressed. The benefits for businesses that proactively engage with mental wellbeing include improved employee motivation, greater staff retention and increased competiveness.

12 The importance of routine check-ups and early diagnosis/ intervention Mental Health Referring patients with mental health problems to talking therapies cuts their use of healthcare services and the amount of sick leave they take. Research was based on 152k patients, of which 1 in 5 had been diagnosed with anxiety or depression. These patients had 5 times as many hospital admissions & were issued with 10 times as many sick notes. People with common mental health problems used significantly more health resources overall than those without. Overall, there is a marked difference between those with common health problems and people referred to Improving Access to Psychological Therapies (IAPT). The study suggests that IAPT may contribute to reducing health service usage. (The Journal of Epidemiology & Community Health, 2011)

13 Shortfalls of the NHS & Rising Waiting Times.

14 5 key factors driving shortfalls in the NHS. Present and future trends threaten the sustainability of the NHS; an ageing population, increases in the number of people with chronic conditions, such as diabetes, obesity and heart disease, greater public expectations, rising medical costs and 20bn efficiency savings by 2015 are all contributing to increased demand on services. The NHS is at a turning point and the problems associated mean that our nation's system of healthcare is simply unsustainable. A significant change is needed in the way in which we fund and deliver healthcare. If the NHS is to survive, it must change.

15 Present and future trends threaten the sustainability of the NHS Demographic pressures Ageing society and growing population Rise in long-term conditions Chronic Conditions burden Cap on budgets NHS pressures and reform Rise in primary care workload GP concerns and shortages Greater public expectations Increased demand, long waiting times and cost of services With NHS waiting times now at their highest level since 2008, employers are now facing extended periods of absence from employees waiting for NHS diagnosis or treatment. Diagnosis and treatment for the most common causes of long-term absence; elective surgery / acute medical conditions, musculoskeletal and mental health conditions are areas where employers will notice the longest waits. Plus, with very little likelihood of the above factors receding in the near future or medium term, further increases to NHS waiting times are expected.

16 GP Access Access to see a local GP is becoming more of a problem, as patient demand is driven by patient expectation, population growth, the expansion of the over 65s and increasing financial pressure are all challenges for GP practices. GPs are now seeing 340 million patients per year. It is estimated that 8,000 more GPs are needed by 2020 to cope with rising demand. (RCGP; Royal College of General Practitioners, 2014) Four out of 10 GPs predict average waiting time for appointments at their practice will exceed 2 weeks from April (Pulse Magazine, 2014) 70% of patients are unable to get an appointment with their GP within 48hrs. (Care Quality Commission, 2013) It is predicted that 34 million patients in England will fail to get an appointment with their GP this year because of the reduction in funding and rapidly growing demand. (HI Magazine, 2014) 65% of patients have lived with a medical problems longer than they would have liked, or avoided going to their GP altogether, because they were unable to get an appointment at a suitable time. (Independent Health News, 2012) Almost 6 million go to A&E because they cannot get a GP appointment unplanned A&E attendance have risen by 11% in four years. (Imperial College London, 2014)

17 Mental Health Mental Health conditions, such as stress, depression and anxiety is one the biggest contributors to both short and long-term sickness absence. (CIPD, 2014) Stress amounts to 40% of all work related illnesses, costing the UK economy a staggering 70 billion a year. (Organisation for Economic Co-operation and Development 2014) Two in 5 employers have seen a rise in mental health problems. (CIPD, 2014) One in 4 people will experience at least one mental health condition at some point in their life. (NHS) Individuals who have tried to access talking therapies such as counselling and CBT on the NHS, 54% wait over three months and 12% waited over a year. (Mind, 2013) 42% of workers say they felt work stress and anxiety was regarded as a sign of weakness. (Mind, 2014) 50% of employees who have experienced stress, anxiety or depression did not tell their employer, believing that being open about a common mental health problem could damage their career prospects. (Occupational Health Magazine, 2014) Estimated between 60-70% of people with common mental disorders are in work and are not receiving treatment. (Gov.uk)

18 Therapies - Physiotherapy Chartered Society of Physiotherapy (CSP) is calling on employers to find ways to support staff to be more physically active during the working day to reduce the risk of developing musculoskeletal problems. Physiotherapists are warning employers that they are risking the health of their business if they don t encourage better working habits and promote physical wellbeing among staff. (CSP, 2014) The average wait to see a Physiotherapist on the NHS is between 6-10 weeks. (CSP, 2013) 73% of Physiotherapists reported an increase in demand affecting waiting times. (CSP, 2012) Many patients face a postcode lottery for NHS musculoskeletal treatment. NHS expenditure treating musculoskeletal patients ranged from 275 to 764 depending on the region they lived in. (HI Mag, 2012)

19 Scanning The average wait for a MRI scan on the NHS was 24 days from referral, but local variations mean the average wait could be twice as long in your area. The volume of MRI scans is growing by 12% per year (average annual growth for 10 years to 2013). This reflects the use of diagnostic scans with a wider range of illnesses and conditions, and especially the aim to diagnose cancer earlier. (NHS England, 2013) There has been a sharp rise in the number of people having CT scans in the UK. It is estimated that the number of scans carried out each year reached a record of 5 million in The number of scans on children, has doubled over the past decade to 100,000 a year in The Royal College of Radiologists said; Radiologists are more aware than most of the remarkable growth in the use of CT over the past decade. (BBC News, 2014) The average price for a private CT scan is 672 and 490 for a MRI Scan. (Private Healthcare UK market study, 2013)

20 Diagnosis & Treatment Waiting times are a key part of patients perceptions of the NHS. (Department of Health, NHS CEO, 2012) The number of patients in England waiting for routine hospital treatment on the NHS has reached a sixyear high. 3.1 million patients were waiting for treatment at the end of June 2014, with an average waiting time of 9.4 weeks. 32,000 patients had been waiting longer than 18 weeks and 521 had been waiting more than a year. (Laing & Buisson Health Market News, 2014) Patients now wait four days longer for planned treatment than they did in 2010 and 10% have to wait longer than the 18 week target. (HI Magazine, 2014) The number of patients waiting more than six weeks for diagnostic tests has doubled in 12 months to more than 2%. At the end of May 2014, 18,600 patients were waiting six weeks or longer from referral for a diagnostic test. (NHS England; 2014) Due to NHS shortfalls there has been a fall in the number of procedures carried out and an increase in waiting times for elective surgeries. In addition, the cost of medical insurance is rising, as a result insurers and private hospitals have been forced to bump up prices as the cost of medical treatments and new drug therapies has spiralled - rising at a faster rate than inflation. Average cost of a private Consultation is 175 and the average wait time to see an NHS Consultant is 56 days. (Private Healthcare UK Self-Pay Market Study, 2013 & NHS England, 2013)

21 Financial Pressures & High Costs Causing Patients to Delay Treatment.

22 High private healthcare fees & rising NHS charges High price tags for private treatment CT Scan; 672 MRI Scan; 490 Physiotherapy; 45 per 30 min Consultation; 175 Private GP; 80 Hernia; 2,595 Hysterectomy; 6,044 Tonsillectomy; 2,307 Knee replacement; 11,215 Private Dentist; Scale & polish; 45, Small amalgam filling; 76 Check up; 43 Half a million people each year in the UK are being misled into paying expensive private dental treatment that should be covered under the NHS. (OFT 2012) NHS Dental charges in England rise annually between 2-3% Counselling; per 40 /50 min session CBT; per 50 min session Optical; Eye Test; Glasses; 170 Contact Lenses: 28.70

23 Employee Engagement, Retention & Productivity

24 Good health is good for business Investing in employee health and wellbeing can improve morale, retention and productivity, as well as potentially reduced absence levels. 45% of employers say offering healthcare benefits has been successful in improving staff retention, and 61% of employers say offering healthcare benefits has been most successful in helping them to be seen as a caring employer. (Employee Benefits; Healthcare Research 2013) CIPD highlighted that there is a significant link between employee engagement with their job and their well-being. It is in an employers interest to be interested in the well-being of staff, not just because of duty of care, but because of the link between well-being and employee engagement, as well as lower levels of stress and absence. (CIPD, 2013) 74% of employees say that they would be more likely to stay with a company that offers great benefits. (Chartered Institute of Payroll Professionals, 2014) 79% of employees believe that the responsibility for managing health & wellbeing should be shared between the Employer and Employee giving impetus for closer working to boost employee health. (The Employee View; Westfield Health 2014) Employee s feel that knowing that their employer cares about their health and wellbeing increases their loyalty, satisfaction and motivation at work. And, 75% of employees recognise that an unhealthy lifestyle reduces productivity and performance at work. (The Employee View; Westfield Health 2014)

25 About Westfield Health Who are Westfield Health? Westfield Health is a not-for-profit health insurance company formed a century ago. We help people access and pay for health treatment. Through our charitable donations, we support NHS and medically related charities to help our customers and the community to a healthier life. We are corporate market leader with 33% market share. (Laing & Buisson, 2014)

26 Thank you