Executive Physicals: 4 Ways to Prove the ROI for Your Company
Top employers around the country offer executive physicals as a benefit for their most critical employees, from the C-Suite to the top salespeople to anyone with an indispensable skillset. Executive physicals are offered by two primary providers – hospitals and boutique concierge medical practices.
Some providers, mostly the concierge practices, offer an executive physical exam as part of a broader executive health program that often includes membership for enhanced primary care.
Others, primarily major hospitals like the Mayo Clinic, offer just the executive physical exam.
Whatever the setup, executive physicals go beyond what insurance covers to help protect your most important employees and secure your company’s future. But now that you’re interested, you need to answer one major question – what is the ROI of an executive physical going to be for your company?
Measuring the ROI of Executive Physicals
Since 2003, PartnerMD has helped countless companies develop an executive health program centered on an executive physical exam that delivers value. From the Fortune 500 corporation looking to provide an executive physical for their C-Suite and all their top performers to the small business looking to offer it to their CEO, we’ve designed programs that deliver a meaningful and valuable return for businesses of all sizes.
When adding executive physicals to your benefits package, you should expect the program to deliver ROI in four main categories:
- Recruitment and retention
- Long-term business risk
- Health insurance costs (for self-insured employers)
- Health of your participating employees
1. Improve recruitment and retention by offering a premium health benefit.
Providing your most valuable talent with VIP access to the best care possible takes care of their physical health while also showing them that you genuinely care about them as a person.
In a talent market with record-low unemployment rates, you face stiff competition to hire new talent, and your top talent is recruited away constantly by headhunters. When it comes to recruiting and retention, consider this statistic from ArmadaCare:
- 67% employees say they would consider a job offer from a recruiter even though they are not thinking of a career change.
So what would the impact be on your business if your top salesperson or CFO left for a competitor? What is the value in keeping them at your company year after year? Offering executive physicals as a premium benefit shows them how much you value them and helps keep your most important employees part of your team.
2. Lower your company’s business risk by identifying the health risk factors of your key individuals.
Providing information and an avenue for your employees to reduce their long-term health risks won’t only help them improve their health. It will help your company ensure your most important employees – the ones most critical to the success of the company – are not a heart attack or cancer diagnosis waiting to happen. Or at least if they are, your company will be aware and can plan for the worst. This is commonly known as key-man risk.
A heart attack or cancer diagnosis could result in six to seven figures of health care costs. A terminal diagnosis or death of a key leader can result in instability in your operations and market perceptions, plus a sudden drop in stock price if you’re a public company. For small businesses, what happens if the owner or another critical employee can’t physically work for an extended period of time?
This is why many businesses who add executive physicals to their benefits packages, particularly those with shareholders and boards, now require top leadership (and even candidates for leadership positions) to have an executive physical every year and before they receive a job offer in writing. Knowing their risk helps long-term succession planning and ensures your company is prepared should any health event prevent a key employee from working.
3. Manage long-term health care costs for your employees and your company (for self-insured employers).
One of the biggest challenges for a company is keeping the cost of their health insurance programs down. Everyone likes lower premiums. One way for larger companies that are self-insured to manage or lower your company’s long-term health care costs is by preventing the kind of health problems that create large-scale bills to treat – think heart disease or cancer.
An executive physical exam could provide your employees knowledge of their risk years in advance, so they can actively work to prevent the issue.
As an example, according to the CDC, nearly 1 in every 100 men develops signs of heart disease by the time they are 45. That risk doubles by the time they are 55. For women, their heart disease risk starts to increase in their 50s.
So how valuable would it be for one of your employees, let’s say a 40-year-old male, to learn their calcium score in their heart is elevated, indicating a higher risk of developing heart disease?With an executive physical, they could get a 5-year head start on lowering that score and preventing a potential heart attack before their risk starts to increase.
And if you combine the executive physical exam with membership for enhanced primary care as part of a broader executive health program (common at concierge practices), they’ll get improved access to care throughout the year. By providing 24/7/365 access to physician care by phone, your employees avoid an unnecessary visit to an urgent care provider or emergency room.
This lowers the amount that they are paying out of their pockets, and it reduces the number of claims and the average cost per claim for your health insurance program. It’s a win-win for both your employees and your business.
4. Improve the personal health your participating employees.
And finally, it’s hard for your employees to be healthier if they don’t have a complete picture of their health. They might think they’re healthy now, but their eating habits and lack of sleep due to stress are starting to add up. They have no idea what their risks might be.
Executive physicals feature comprehensive, in-depth preventive tests and screenings that go beyond the basics of what health insurance covers to provide a snapshot of their health and their risks. Your employees will get advanced cardiovascular testing, advanced cancer screenings, comprehensive blood testing, and more.
As the old saying goes, knowledge is power and this knowledge means your employees will not only know their risks, but also be able to work to reduce their risk over the long-term. Through an executive physical, a CT Heart Scan might reveal they have an elevated risk of a heart attack. With this knowledge, they can get to work on preventing that.
That’s where offering a membership option for enhanced primary care between physicals comes into play. By combining the executive physical with membership, you can get tangible results that demonstrate the value of improved health for your company. For example, one corporate client at PartnerMD saw the following results over two years:
- 14% reduction in participants with 4+ risk factors, including:
- 13% reduction in hypertension
- 12% reduction in elevated LDL
- 8% reduction in pre-diabetes
Executive Physicals at PartnerMD
As mentioned before, we work with companies of all sizes to structure an executive health program that works for them. We customize every aspect of the program to make sure the right people are getting the health information they need at the right cost for the company.
Watch this video featuring Mitch Haddon, President and CEO of ColonialWebb Contractors in Richmond, Virginia, talking about the value of their executive physicals.
Next Steps: Choosing an Executive Physical Provider
If you’re still unsure about what the right executive physical or executive health program is for your company, we’re here to help. We’ve written a few blogs that dive deeper into what’s offered at various providers.
- Executive Health Programs: What Are My Options?
- Hospitals vs. Concierge Medical Practices for Executive Health Programs
If you’re ready to get started, we suggest contacting a few providers to request information about their services and their pricing. Then, determine what works for your company.
If you’re interested in talking with PartnerMD about adding executive physicals to your benefits package, request a custom proposal and a corporate specialist will contact you within one business day.