JM & ArK, Inc.Reduced Stress & Nutrition

Program ProposalBY: JASMINE DAVEY, MELISSA NALL, KEVIN ARK

STRESS

Type # of Claims Total CostAverage

Cost/Claim

Hypertension 21 $24,150 $1,150

Heart Disease 2 $7,642 $3,821

Alcohol Abuse 4 $4,800 $1,200

Smoking 13 $18,577 $1,429

Insomnia 16 $36,480 $2,280

Problem Identification

Reduced Stress

Reduce the number and average individual cost of hypertension, heart disease, alcohol abuse, smoking, and insomnia claims related to stress in the workplace by 15% within the first year of the program.

Goal

ENVIRONMENTAL ASSESSMENT-STRESS

Data Sources Scope SpecificityDemographics Human

Resource Manager

Age Range: 23-65Female: 65%Male: 35%Management: 10%Non-management: 90%70 Employees

Average: 37Median age: 45

Employee Health Records

Occupational Health Nurse

Hypertension: 30%Heart Disease: 3%Alcohol Abuse: 5%Smoker: 19%Insomnia: 23%

•1/3 of hypertension cases are unmanaged.•Insomnia cause 45% of lower productivity ratings in the workforce.

Health-risk assessment

JM & Ark Staff 9 of 10 lifestyle indicators rated poorly in more than 75% of respondents

5 highest risk indicators:•Mental Stress•Personal Stress•Alcohol & Substance Abuse•Insomnia•Physical Inactivity

Environmental Assessment

Data Sources Scope SpecificityMedical Claims Benefits Manager •Outpatient costs rising

7% each year.

•Inpatient cost rising 4% each year.

•Diagnostic testing comprises 70% of all outpatient costs vs. 60% last year.

Culture Audit JM & Ark Staff Perceptions on 4 out of 5 cultural indicators revealed low ratings.

4 lowest indicators: •Physical Environment•Overworked or heavy work load•Little break time•Lack of physical activity or healthy eating habits

Productivity All previously mentioned sources

Absenteeism: 5%Presenteeism: 65%Disability: 5%

Presenteeism is twice as high in office or administrative workers.

Worksite Strategies-Stress

Company Program Features Impact

Target Pre-shift stretching, safe lifting techniques, lower healthcare costs for good biometric health screenings, Life Resources counseling

75% Drop in worker’s compensation claims.55% report better work life balance.

Corning Classes in tai chi, biofeedback, meditation, yoga, muscle relaxation, guided imagery and cognitive restructuring

30% Lower absenteeism.20% of employees reported better sleep.50% reduction in tension headaches.

Kaiser Permanente

Download stretch break reminders, walk breaks, mobile wellness units, family days, classes and phone consultations, relax program.

61% of people who have completed the program report reduced stress.

Proposed Program

Phase 1 (March)-Awareness & Publicity: Each week during the month of March will be an awareness week on

Hypertension, Heart Disease, Alcohol & Substance Abuse, Smoking, and Insomnia.

The monthly newsletter, posters, and paycheck stuffers will have tips to help resolve claims, explain the new wellness program, and share more information on next month’s phase.

Phase 2 (April)-Training & Health Assessments: Occupational Health Nurse will be doing a meet and greet for all employees. The nurse will go over problem topics like Hypertension, Heart Disease, Alcohol

& Substance Abuse, Smoking, and Insomnia and ways to prevent these problems.

The nurse will also conduct individual health assessments for employees and take employee’s blood pressure for future monitoring.

Proposed Program

Phase 3 (May)-Incentives: Worksite posters, newsletter, and paycheck stuffers will inform employees during this month of the

incentives involved in the program Employees without claims can compete for prizes and participate in contests. (Prizes: Spa Certificates,

Gift Cards, additional time-off, etc.)

Phase 4 (June/July)-Implementation: During the month reduce stress exercises, stretches, and proper breathing techniques will be

practiced. More opportunities for small breaks through out the day to help reduce stress in the workplace. Healthy food options will also be made available.

Phase 5 (August)-Monitoring & Evaluation: Occupational Health Nurse will review and evaluate data, conduct health risk assessment every 6

months to determine the impact of the program. The nurse will recheck employee’s blood pressure, and continue to monitor individual health

assessments for all employee’s.

Resource Assessment

On-site Inventory Available & Necessary Resources Available Resources:

Facility: Large Facility with additional space.

Promotional Materials:NewsletterPostersPaycheck Stuffers

Budget: $5,500 per year is available in the Human Resource Department Discretionary Fund.

Needed Equipment:

Equipment: None.

Incentives: Quarterly Incentives (Sweepstakes, Prizes, etc.)

Expected Costs Annual Operating Costs for Program Proposed Personnel:

Occupational Health Nurse: (70 employees X $30 per person X 2/yr) = $4,200

Facility: No additional cost (will be using existing space)

Equipment: Newsletter ( 12/yr X $0.30/issue) = $3.60 Posters (15 posters X $5.00/poster) = $75 Paycheck Stuffers (70 employees X 0.50/check stuffer) =

$35

Incentives: $250 Quarterly = $1,000

Total Estimated Cost: $5,314

$4,200

$114

$1,000

Program Cost

Personnel FacilityEquipment Promotions

Expected Benefits

Key benefits of our wellness program: Reduced costs from worker’s

compensation claims Increased productivity Lower tension between employees Lower absenteeism Improve morale and lower turn-over rate

Overall Benefit-Cost Projection

Claims

Avoided

Benefit Program CostBenefit-Cost

Ratio

1 $2,700 $5,314 [0.51|1]

2 $5,400 $5,314 [1.02|1]

3 $8,100 $5,314 [1.52|1]

4 $10,800 $5,314 [2.03|1]

5 $13,500 $5,314 [2.54|1]

6 $16,200 $5,314 [3.05|1]

7 $18,900 $5,314 [3.56|1]

8 $21,600 $5,314 [4.06|1]

9 $24,300 $5,314 [4.57|1]

10 $27,000 $5,314 [5.08|1]

11 $29,700 $5,314 [5.59|1]

•Program Cost: $5,314•Average Claim Cost: $2,70015% drop in claims (11 employees)

NUTRITION

Type # of Claims Total Cost Average Cost/Claim

Diabetes 6 $13,200 $2,200

High Cholesterol 25 $32,500 $1,300

Overweight 25 $29,850 $1,194

Obesity 20 $28,580 $1,429

Lack Physical Activity 33 $23,397 $709

Problem Identification

Nutrition

Reduce the number and average individual cost per claim by 15% by promoting healthy eating habits, physical activity to prevent and manage overweight, obesity, and other diseases like heart disease and diabetes.

Program would increase number of servings of Fruits and Vegetables, reduce fatty food intake, and incorporate physical activity for at least 30 to 90 minutes to help prevent claims and increase healthy nutrition.

Goals

ENVIRONMENTAL ASSESSMENT- NUTRITION

Data Sources Scope SpecificityDemographics Human Resource

ManagerAge Range: 23-65Female: 65%Male: 35%Management: 10%Non-management: 90%

Average: 37Median age: 45

Employee Health Records

Occupational Health Nurse

Diabetes: 8%High Cholesterol: 36%Overweight: 36%Obesity: 29%Lack Physical Activity: 47%

•30% employees eat more fatty foods during work hours.•35% decrease in productivity with employees who have poor eating habits.

Health-risk assessment

JM & Ark Staff 7 of 10 lifestyle indicators rated poorly in more than 75% of respondents

5 highest risk indicators:•Mental Stress•Personal Stress•Overweight or obesity•High Cholesterol•Physical Inactivity

Environmental AssessmentData Sources Scope Specificity

Medical Claims Benefits Manager •Outpatient costs rising 9% each year.

•Inpatient cost rising 5% each year.

Diagnostic testing comprises 65% of all outpatient costs vs. 45% last year.

Culture Audit JM & Ark Staff Perceptions on 5 out of 5 cultural indicators revealed low ratings.

5 lowest indicators:•Physical Environment •Unhealthy eating habits•Low servings fruits and veggies•Stress•Lack Physical Activity

Productivity All previously mentioned sources

Absenteeism: 8%Presenteeism: 60%Disability: 8%

Presenteeism is twice as high in office or administrative workers.

Worksite Strategies-Stress

Company Program Features Impact

Club BodFit On-site gourmet health-food, sells 100% all-natural fruit smoothies, low-fat salads and wraps, its own line of vitamins and herbal supplements.

20% Reduction in the risk of developing high cholesterol, type 2 diabetes and high blood pressure.26% reduction in vending machine purchases.

Ambassador Wellness Center

“Learn to Lose” sessions include group classes, individual nutrition counseling. Receive newsletter, and have access to a website and bulletin board.

30% reduction in absenteeism10% increase in employee retention and increased attractiveness to potential employees.

21st Century Health Club

On staff R.D. who develops individual plans based on moderation, smart food choices and integrating positive health behaviors into daily life. Group weight loss classes, menu planning, and personal shopping.

20% increase in productivity.10% reduction in healthcare costs.

Resource Assessment

On-site Inventory Available & Necessary Resources Available Resources:

Facility: Large Facility with additional space.

Promotional Materials:NewsletterPostersPaycheck Stuffers

Budget: $3,000 per year is available in the Human Resource Department Discretionary Fund.

Needed Equipment:

Equipment: Exercise/Yoga Mats, and Resistance Bands needed for exercise on-site.

Incentives: Quarterly Incentives (Sweepstakes, Prizes, etc.)

Online Resources: MyFitnessPal, Noom, Super Tracker, ChooseMyPlate.gov, etc.

Proposed Program

Phase 1 (March)-Awareness & Publicity: Each week during the month of March will be an awareness week on Diabetes, High

Cholesterol, Overweight & Obesity, and Lack Physical Activity. The monthly newsletter, posters, and paycheck stuffers will have tips to help

resolve claims, explain the new nutrition wellness program, and share more information on next month’s phase.

Phase 2 (April)- Introduction to On-site Nutritionist & Online Resources: On-site Nutritionist will meet with employee’s for 2 hours during the month to do

one-on-one council/coaching session. The monthly newsletter, posters, and paycheck stuffers will introduce online

resources available to employees starting this month. Healthy food options will also available. Team meetings at end month will promote physical activity.

Proposed Program

Phase 3 (May)-Incentives: Worksite posters, newsletter, and paycheck stuffers will inform employees during this month of the

incentives involved in the program Employees who keep an updated tracking food & exercise log can compete for prizes and participate

in contests. (Prizes: Spa Certificates, Gift Cards, additional time-off, etc.)

Phase 4 (June/July)-Implementation: Managers will lead by example by taking a few minutes every day to do stretches, yoga, resistance

band exercises to promote physical activity. Employees will start tracking their food intake and physical activity by keeping a journal or using

online resources like MyFitnessPal. Monthly Team Meetings to encourage, support, and help each other accomplish healthy lifestyle.

Phase 5 (August)-Monitoring & Evaluation: On-site Nutritionist will review & evaluate data, and conduct health risk assessment to

determine the impact of the program. Employees will submit confidential progress reports to Nutritionist for extra incentives. The Nutritionist will continue to monitor individual healthy habits for all employee’s and

provide additional guidance, support and encouragement to employees.

Expected Costs Annual Operating Costs for Program Proposed Personnel:

Nutritionist: ($125/session X 2 hours X 2/yr) = $500 Facility: No additional cost (will be using existing space) Equipment:

Newsletter ( 12/yr X $0.30/issue) = $3.60 Posters (20 posters X $5.00/poster) = $100 Paycheck Stuffers (70 employees X 0.50/check stuffer) =

$35 Floor Mats ($9 X 70 employees) = $630 Resistance Bands ($8 X 70 employees) = $560

Incentives: $350 Quarterly = $1,400

Total Estimated Cost: $3,229

$500

$1,329

$1,400

Program Cost

Personnel FacilityEquipment Incentives

Expected Benefits

Key benefits of our wellness program: Reduced costs from worker’s compensation claims Increased productivity Lower tension between employees Lower absenteeism Improve morale and lower turn-over rate

Overall Benefit-Cost Projection

Claims Avoide

dBenefit Program Cost Benefit-Cost

Ratio

1 $2,200 $3,229 [0.68|1]

2 $4,400 $3,229 [1.36|1]

3 $6,600 $3,229 [2.04|1]

4 $8,800 $3,229 [2.73|1]

5 $11,000 $3,229 [3.41|1]

6 $13,200 $3,229 [4.09|1]

7 $15,400 $3,229 [4.77|1]

8 $17,600 $3,229 [5.54|1]

9 $19,800 $3,229 [6.13|1]

10 $22,000 $3,229 [6.81|1]

11 $24,200 $3,229 [7.49|1]

•Program Cost: $3,229•Average Claim Cost: $2,20015% drop in claims (11 employees)