The Cost-Effectiveness of Regular Health Screenings

As we explore the value of regular health screenings, cost-effectiveness emerges as a major benefit for individuals, companies, and society.

Expert Contributors:

Maria Knobel

Medical Director at Medical Cert UK

A health screening might seem trivial in the vast healthcare landscape, but its impact certainly isn’t.

For individuals, regular check-ups can catch potential health issues before the onset of symptoms. That means an early diagnosis for employees, which leads to early intervention and management, improving the patient’s chances of recovery and financial impact.

This creates a chain reaction that transcends individuals and benefits society, from better healthcare to more useful resource allocation. Corporations, too, find value in promoting regular employee health screening since a healthier workforce translates to increased productivity and cost savings.

Focusing on the cost-effectiveness aspect for everyone involved, below we detail what health screening is and go over its types, benefits, challenges, and best practices.

What is Health Screening?

A health screening is a medical test that detects a disease before the onset of symptoms. Regular screening increases the chances of an early diagnosis when a disease is easier to treat.

Depending on what the doctor is checking for, these tests, such as physical exams and blood tests, are usually performed in a primary care physician’s office. However, different types of diagnoses may require special equipment, so they can also be done in hospitals and specialty clinics.

Another way to access them is through the workplace, as many employers offer employee health screenings as part of their benefit programs. They usually use them to check for potential health risks that could impact workers’ job performance and to ensure their safety and productivity.

Types of Screenings

There are as many types of screenings as there are categorizations. The following are some of the most common examples of both.

Based on their purpose:

Preventative tests that detect diseases before any signs or symptoms appear
Diagnostic tests that should confirm or rule out a suspected condition

Based on the conditions:

Cancer screenings, from mammograms and PAP smears to prostate exams or skin checks
Cardiovascular tests like measuring blood pressure or ECGs
Metabolic health screenings like diabetes tests
Vision and hearing exams
Respiratory screenings, such as chest X-rays or measuring lung function

Based on the test methods:

Physical exams
Lab tests
Imaging tests

Based on the risk factors:

Lifestyle-related assessments for those with personal risk factors like smoking, substance abuse, obesity, sedentary lifestyle, etc.
Genetic predispositions or tailored exams for those with a family history of certain diseases

In addition to the latter, some health screenings depend on risk factors in combination with the patient’s age and sex.

For example, the American Cancer Society recommends yearly mammograms for women over 40 and every other year for women 55 and older. On the other hand, their recommendation for early detection of prostate cancer is for men with average risk to have their first prostate exam by the time they’re 50. For those at high risk, the age range is from 40 to 45 for men with more than one first-degree relative who had prostate cancer.

Employee health screenings can include anything from blood and immunization tests to health questionnaires, substance abuse tests, and biometric screening.

The choice depends on the company and the needs of its workforce.

Cost-Effectiveness of Health Screenings

Regular health screenings are gaining recognition for their role in improving health outcomes through early diagnosis.

Their cost-effectiveness comes as a direct result of this.

“When individuals undergo regular health checks, potential health issues can be identified early, which means that treatment can be less invasive and more cost-effective,” explains Maria Knobel, Medical Director at Medical Cert UK.

While it’s difficult to provide an exact number, numerous studies over the years have confirmed that screening can be, in fact, more financially efficient.

Screening for breast, colorectal, cervical, and lung cancer has saved over $6 trillion, according to a study examining the aggregate value of cancer screenings in the United States. This sum can increase with perfect adherence to the recommendations for screening by the U.S. Preventive Services Task Force.

Another research addressing the value of early detection of cardiovascular disease shows that most methods (87.8%) used to diagnose CVD effectively reduce healthcare costs and improve patient outcomes.

In addition, The Cost of Delayed Diagnosis in Rare Disease report reveals that early diagnosis could save up to $517,000 per patient in avoidable expenses for rare diseases.

For Employers

Beyond the obvious advantages to individuals and the economy, regular health screenings also affect the workplace.

Healthier employees will result in fewer sick days, reducing the cost of absenteeism due to work illness (or injury), which reaches $225.8 billion annually, or $1,685 per employee.

“The ripple effect is a more productive workforce, with fewer disruptions and less need for expensive temporary staff or overtime pay to cover for absent employees,” concludes Maria Knobel.

Health screening can also become a tool to reduce healthcare costs for employers, especially those associated with proactive or reactive care.

For Employees

For employees, the cost benefits lie in the early detection and proactive approach to health, which can lead to lower medical expenses in the long run. Participation in work screenings can help them gain insight, make better lifestyle choices, or seek immediate care.

Consequently, this leads to less expensive or invasive treatments, saving money on pricey medication, and reduced out-of-pocket medical expenses.

Challenges and Risks

With so many benefits at play, what could possibly derail this?

There are two likely responses:

People are not getting tested.
They are, but the results present new challenges.

Health attitudes and a lack of access to screenings emerge as the main obstacles for the first.

According to the Prevent Cancer Foundation’s Early Detection Survey, 65% of Americans aged 21 and over are behind on one or more routine cancer screenings. The main reasons for this were a lack of awareness (39%), lack of symptoms (37%), and cost concerns (31%). Additionally, 40% have never discussed routine cancer screenings with their healthcare provider.

Another study exploring the factors influencing the willingness to participate in health screenings for chronic diseases reveals low health knowledge as another barrier, hinting at the importance of increasing awareness on this matter.

The report also mentions the fear associated with screening procedures, characterized by anxiety about potential diagnoses, discomfort during the procedures, or negative emotions such as embarrassment and pain.

As for the second cause, the risks and challenges of (attending) regular health screenings are usually related to overdiagnosis and false results.

Overdiagnosis

An overdiagnosis occurs when a condition is unlikely to cause symptoms or harm, yet patients undergo (often unnecessary) treatments that could affect their quality of life. Although it’s a correct and early diagnosis, it may not be beneficial for the patient’s health in the long term.

False Positives and Negatives

False positives are when a patient gets diagnosed with a disease they don’t have, leading to unnecessary anxiety, follow-up procedures, or invasive treatment.

False negatives are the opposite. The tests fail to detect a condition that can erase the immediate benefits of early treatment.

Both can undermine the effectiveness of screening programs, affecting patient trust and their health outcomes. A false positive or negative can also impact an employee’s job prospects in the workplace.

Impact on Quality of Life

Screenings are a proactive way to prevent and manage diseases, so their primary impact on quality of life is promoting better health outcomes.

However, there are many indirect and sometimes overlooked benefits of a regular health screening that contribute towards this:

Better mental health due to less stress and anxiety about a potentially undiagnosed condition.
Greater control over one’s life as a result of identifying potential health issues early on when they are easier to manage can lead to better outcomes.
A healthier lifestyle since screenings often promote health education, awareness, and adoption of healthier habits.

Below, we take this further, exploring what this means on more than an individual level.

Corporate and Societal Benefits

Prevention rather than cure fits this context, as we’ve seen how helpful a health screening can be.

Although the direct advantages are evident by now, below, we summarize all aspects of these tools that help build a more productive workplace and a healthier society.

Workplace Health Screenings

The cost efficiency of reducing absenteeism and increased productivity is reason enough for companies to introduce employee health screenings in the workplace.

However, the economic benefit can extend beyond this and to their implementation.

Concerning this subject, Maria Knobel emphasizes two factors worth noting:

“The first is integrating screening results into a comprehensive health management program.

Screenings are most effective when they lead to actionable insights. Employers should consider how to use the results—whether through personalized health plans, follow-up consultations, or workplace wellness initiatives. Simply screening without a plan for acting on the information gathered is like having a map without a destination in mind.

The second factor is the potential for long-term savings versus the upfront costs.

While regular health screenings require an initial investment, the potential savings from reduced absenteeism, lower insurance premiums, and decreased workers’ compensation claims can outweigh these costs over time. Employers should look at their current health-related expenses and consider how much they might save if health issues were caught earlier. In many cases, the cost of not implementing such programs could be far greater in the long run,” concludes Knobel.

“While regular health screenings require an initial investment, the potential savings from reduced absenteeism, lower insurance premiums, and decreased workers’ compensation claims can outweigh these costs over time.”

Maria Knobel Medical Director at Medical Cert UK

Societal Cost Savings

Early detection of cancer, CVD, rare diseases, and many other conditions have proven cost-effective, which inevitably becomes a societal benefit as well.

Lower healthcare expenses for preventative measures, rather than costly treatments and reduced hospitalizations, save trillions of dollars. At the same time, making healthy lifestyle changes improves a person’s quality of life, which further reduces the societal costs associated with disability and caregiving.

Finally, when done right, the lesser strain on businesses can also “give back” millions of dollars to the economy, as productive and efficient employees contribute to long-term economic stability and growth, ultimately benefiting society.

Best Practices for Implementing Health Screenings

Employee health screenings play a significant role in corporate well-being.

They could either be voluntary or part of a conditional job offer. They can take the form of physical examinations, blood tests, medical questionnaires, psychological assessments, drug and alcohol testing, or biometric screening such as weight, cholesterol levels, blood pressure, and more.

So, how do companies approach this matter?

The following tips and practices provide some insight into their process.

Step 1: Assess employee needs to identify employees’ health concerns and preferences.

Step 2: Define a goal and program that reflects the results and aligns with the business objectives.

Step 3: Consult with healthcare professionals or wellness providers to ensure reliable services.

Step 4: Implement the screening program and communicate this to the employees, ensuring they understand the benefits and importance.

Step 5: Make everything accessible and convenient, for example, by providing flexible scheduling options or bringing health screening services directly to the workforce.

Step 6: Provide incentives for participation to encourage higher engagement and better results.

Step 7: Follow up with employees who receive a diagnosis and offer support and access to wellness programs or healthcare providers.

Step 8: Build a workplace culture prioritizing health and wellness through health education and workshops, health coaching companies, and more.

Health Coaching Programs for Employees

Optum Workplace Well-being

Wellness Concepts, Inc.

Aduro

Final Thoughts

While there may be some risks, regular health screenings significantly improve healthcare as a whole.

In the workplace, adding them to benefits packages helps strengthen the employer’s commitment to well-being while improving awareness and access – two noteworthy challenges.

Overall, this strategic move reduces healthcare expenses and boosts the company’s bottom line, making employee health screening a savvy financial decision for businesses committed to sustainable growth.

Disclosure: Some of the products featured in this blog post may come from our partners who compensate us. This might influence the selection of products we feature and their placement and presentation on the page. However, it does not impact our evaluations; our opinions are our own. The information provided in this post is for general informational purposes only.

Written by Tamara Jovanovska

Content Writer at Shortlister

Sources

Health Coaching Companies

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