Preventive Health Care Seminar 1

ICRIER

Impact of Preventive Health Care on Indian Industry and

Economy

Dr. Alka ChadhaNational University of Singapore

September 12, 2007New Delhi

Preventive Health Care Seminar 2

ICRIER

Preventive health careToday’s sedentary lifestyle of corporate employees invariably leads to long-term damage to health.

Knowledge-based economies rely on intellectual capital which is critically dependent on the quality and health of employees.

Preventive health care for employees is the need of the hour for the corporates to remain competitive.

The first ever survey done in India to understand and generate awareness regarding preventive health care measures in the corporate sector.

Preventive health care is about the individual and refers to health check-ups and lifestyle changes.

Preventive Health Care Seminar 3

ICRIER

Relationship between disease and economic growth

Disease

Absenteeism, early retirement, morbidity and mortality

Shorter lifespan and rise in the rate of time preference

Lower labour productivity

Higher dependency ratio

Higher consumption and lower rates of savings and investments

Lower national income and stagnant growth

Preventive Health Care Seminar 4

ICRIER

Survey methodology

Preventive health care providers were contacted to share their experience of providing health check-ups.

The first phase of the survey was carried out for private companies from March to June 2007 with 81 respondents.

The next phase of the survey was targeted at individual employees for one working week with 288 responses.

Preventive Health Care Seminar 5

ICRIER

Preventive health care providers

Apollo Hospitals Group emphasized the need for regular check-ups since a disease can develop at any stage in life.

K.G. Hospital said a health check-up is like an “annual maintenance certificate”.

Jaslok Hospital said preventive health care is required to reduce not just absenteeism but also “presenteeism”.

Preventive Health Care Seminar 6

ICRIER

Preventive health care measures offered by companies

42

26

14

2526

16

6

12

Preventive health checkups

Regular health screening

Facilities for exercising

Stress-relieving techniques

Lifestyle-related advise

None of the above

All of the above

Other

Preventive Health Care Seminar 7

ICRIER

Mandays lost owing to sickness

0-1042%

11-3023%

31-5011%

More than 5124%

Preventive Health Care Seminar 8

ICRIER

Major afflictions according to management grades

12

1

26

8

24

3

22

108

25

6

17

Acute diseases

Chronic infectiousdiseases

Lifestyle diseases

Other

Senior-Level Medium-Level Blue-collared workers

Preventive Health Care Seminar 9

ICRIER

Does preventive health care increase profitability of a company

Not sure14%

Not applicable1%

No3%

Yes82%

Preventive Health Care Seminar 10

ICRIER

Employee survey

40% of respondents belonged to the manufacturing sector.

56% of respondents had undergone a preventive health check-up at some point.

Interestingly, the same percentage of responding employees were white-collared, among whom there is greater awareness and practice of preventive healthcare as compared to blue-collared workers.

Preventive Health Care Seminar 11

ICRIER

Benefits accruing to employees from preventive health care

All benefits64%

Lesser expenses on curative care4%

Reduced loss of working days10%

Better quality of life with peace and happiness20%

No benefits2%

Preventive Health Care Seminar 12

ICRIER

Should employers provide vouchers for preventive health care?

No9%

Yes91%

Preventive Health Care Seminar 13

ICRIER

What employers feel about vouchers as a delivery system

Yes50%

Other13%

Not applicable8%

Not sure18%

No11%

Preventive Health Care Seminar 14

ICRIER

International comparisonsCountry Per capita

total health expenditure

($)

Per capita govt. health expenditure

($)

Share of private health expenditure

in total health expenditure

(%)

Share of out-of-pocket

expenditure in private

health expenditure

(%)

Share of private

prepaid plans in private

health expenditure

(%)

Brazil 212 96 54.7 64.2 35.8

China 61 22 63.8 87.6 5.8

India 27 7 75.2 97 0.9

S. Korea 705 348 50.6 82.8 4.1

Thailand 76 47 38.4 74.8 14.6

Canada 2669 1866 30.1 49.6 42.3

France 2981 2273 23.7 42.2 53.5

Japan 2662 2158 19 90.1 1.7

U.K. 2428 2081 14.3 76.7 23.3

U.S.A. 5711 2548 55.4 24.3 65.9

Preventive Health Care Seminar 15

ICRIER

Demographic dividend

India is enjoying the competitive advantage of a young, English-speaking workforce while developed countries are facing the problem of ageing and rising health care costs owing to insurance charges.

Companies have to ensure that the labour force remains efficient and productive.

Thus, the need for preventive health care.

Preventive Health Care Seminar 16

ICRIER

Policy recommendations for the private sector

Conduct health audit of all employees at regular intervals through check-ups.

Follow-up with treatment and counselling.

Organize awareness camps.

Encourage employees to adopt a more healthy and preventive lifestyle.

Preventive Health Care Seminar 17

ICRIER

Policy recommendations for the government

Section 17 of the Income Tax Act provides exemption for medical expenses up to Rs.15,000 for employees. This should be amended to include the whole range of preventive health care measures.

Income Tax exemption under Section 80D of the Income Tax Law is provided for health insurance and medical treatment. Provision for a similar exemption should be made for preventive health care measures.

The government should provide fiscal incentives, like corporate tax breaks, to those employers offering preventive health care facilities to their employees.

We recommend preventive health vouchers as a service delivery system.

Preventive Health Care Seminar 18

ICRIER