Defining Total Corporate Health and Safety Costs Significance and Impact

Abstract

This is the first in a series of studies designed to assist directors of occupational health and safety services in defining, measuring, predicting, and integrating total health and safety costs into useful management information. This study was structured to review recent literature on health and safety costs and to categorize costs as either direct or indirect. This delineation should aid in defining total health and safety costs, delineating priority areas for interventions to reduce costs, and evaluating the effectiveness of health and safety programs. The significance of such efforts is underscored by the reported direct health care costs for the nation's work force of over $418 billion, and indirect costs, using the lower range of estimates for such costs, of over $837 billion. Reducing the total costs of over $1.256 trillion would have major impacts on corporate productivity and competitiveness, as well as on availability of health care programs for employees. Recommendations for follow-up activities to define costs and evaluate intervention programs are provided.

Failure to Complete a Functional Restoration Program for Chronic Musculoskeletal Disorders: A Prospective 1-Year Outcome Study

“…3 Further, indirect costs associated with musculoskeletal disorders 8 have been estimated to account for over $800 billion in expenditures, a cost up to 14 9 times greater than direct costs. [4][5][6][7] Up to 85% of the adult workforce will miss time and 10 seek professional care for musculoskeletal pain during the course of their careers. 8 For 11…”

Prevalencia, impacto en la productividad y costos totales de las principales enfermedades en los trabajadores de un hospital al sur del Perú en el año 2003.

“…La razón de dejar de lado a los costos indirectos es la difícil y complicada forma de hallarlos (13,15,17,19). Pero el evaluar los costos totales, directos e indirectos, es muy importante para una empresa, no sólo por que la ayuda a comprender el impacto de la salud en la economía de la institución, sino por que son muy buenos parámetros cuando se intenta corregir, con programas, la salud de los trabajadores (1,8,14,16).…”

Development of Cost Estimation Tools for Total Occupational Safety and Health Activities and Occupational Health Services: Cost Estimation from a Corporate Perspective

“…Costs for prevention are the costs required to implement OSH activities, e.g., personnel costs, expenses and investments. Costs of loss are the equivalent of an employee's health-related loss, e.g., absence from work due to accidents, injuries, and diseases and health-related productivity loss, sometimes referred to as "presenteeism" 17) . In the context of economic evaluation, the costs for prevention are often counted in the costs, and the costs of loss are often counted in the consequences.…”