Article - Implications of Obesity for Corporations

Report from the Washington Business Group on Health (WBGH)

Obesity epidemic costs organizations more than $12 billion annually.

What is being done?
On June 17, 2003, the Washington Business Group on Health (WBGH) launched the Institute on the Costs and Health Effects of Obesity to help corporate America reduce the impact of obesity and weight-related conditions in the workplace. The Institute, which includes some of the world's leading corporations and federal health agencies, will explore the epidemic of obesity, propose solutions and strategies, and serve as a catalyst for change.

"Obesity has a devastating impact on the health of employees and, by extension, on their employers," said Vince Kerr, a physician and Director of Health Care Management at Ford Motor Company, one of the founding members of the Institute. "Organizations lose more than $12 billion per year due to higher health care utilization rates, lowered productivity, increased absenteeism, elevated health and disability insurance premiums and other consequences associated with obesity and weight-related conditions. Addressing this growing epidemic has never been more critical."

The Institute on the Costs and Health Effects of Obesity is the first of its kind and is structured specifically for a corporate audience. The Institute will serve as a reliable resource for large employers on the health and cost repercussions of obesity and related chronic conditions. Additionally, the group will identify effective strategies to decrease the incidence of obesity among U.S. workers and will develop and disseminate clear messages that stress obesity's preventable nature as well as its role in physical and mental health.

Overall impact of obesity on health and costs outweighs even that of smoking.

"Research has shown that the overall impact of obesity on health and costs outweighs even that of smoking," said Helen Darling, President of WBGH. "As a result, no company in America can afford to ignore the problem of obese and overweight employees. High obesity rates among children, changing workforce demographics and the upward trajectory of health care costs mean employers' obesity-related direct medical costs and indirect costs of lost productivity will continue to escalate unless we take concerted action to support workers' efforts to reduce obesity and choose healthier lifestyles."

What can an employer do?
The WBGH has created an Employer Toolkit report on weight management that offers ways to support employees' desires to have healthier lifestyles. Additional Institute projects and initiatives planned for the next two years include a national weight awareness initiative, issue briefs, an online resource center and a Corporate Summit that will bring large employers together to discuss obesity-related challenges and share effective solutions and strategies. "The Institute provides a crucial forum for private and public organizations to work together to develop innovative, proactive strategies for addressing obesity and its implications. No single company or agency can solve the problem of obesity on its own; instead, a collaborative approach that combines research with strategic implementation is critical," said Dr. William H. Dietz, M.D., Ph.D., Director of the Division of Nutrition and Physical Activity at the Centers for Disease Control.

What resources are available for employers?
Additional information about the Institute is available at www.wbgh.org The Washington Business Group on Health is the national voice of large employers dedicated to finding innovative and forward-thinking solutions to the nation's most important health care issues. WBGH's members are 175 of the largest and most innovative private and public sector employers in the nation, providing health care coverage for more than 40 million U.S. workers, retirees, and their families. The Business Group also supports its members in the areas of disability, health/productivity, related paid time off and work/life balance issues.

The Boswell Center is headed by Dr. Kelly Boswell, a leading provider of psychology services in North Florida and an expert in the treatment and prevention of obesity and eating disorders. The Center offers personalized treatment and follow-up processes that are second to none, with a full spectrum of services, including registered dietitians.

For more information, call (904) 332-9100.

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