Contributor: Jeff Tzeng, DO, MPH, MBA
To learn more about Jeff, click here.
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In today’s fast changing business environment, the crossroads of business and healthcare has become increasingly significant. As companies face complex challenges from workforce well-being/safety to rising health plan and benefits spend to retaining talent, the importance of strategic health leadership has never been greater. Chief Medical Officers (CMOs) are critical leaders who can bridge medical expertise with business strategy to drive innovation to keep a business competitive. This article will briefly explore why companies, even those not directly in the healthcare business, cannot afford to ignore the value of dedicated healthcare leadership at the executive ranks.
The Tangible Benefits of Having a CMO Through Improved Productivity and Reduced Costs
CMOs play a critical role in ensuring high quality, evidence-based employee health and safety initiatives are implemented in the workplace. They address key workforce issues such as absenteeism, presenteeism (employees being physically present but not fully productive due to health issues), health/safety culture, and chronic disease management. For example, a study found that a good-quality, health promotion program led to 25% lower medical and absenteeism compared to non-participants.1 This improvement can translate to substantial savings and productivity gains.
The financial benefits for CMOs are increasingly compelling. They can help optimize health benefit design and manage healthcare costs through claims data but overlay their first-hand clinical care experience by offering “the voice of the patient.” Companies with focus on workplace health and safety realize substantial financial benefits, with one study calculating 46% reduction in injury claims and 68% improvement in return-to-work times.2 With an experienced CMO, companies can create specific health interventions such as mental health support, chronic disease management, health and safety programs, and early cancer detection initiatives that align with company culture and goals.
The Hidden Risks of Not Having a CMO with Missed Opportunities for Innovation
The right CMOs drive innovation by integrating health strategies into the organizational culture. They can be proponents of mental health and resiliency programs, telemedicine services, and other wellness initiatives with a level of authority that can truly impact workers and their families. They can help enhance the culture of wellness in a company’s people strategy. By contrast, companies that lack a CMO often lag behind on these advancements and opportunities.
There are also significant risks of navigating OSHA, ADA, and other global health and safety regulations without the right expert. Transversing the complexity of these regulations is often shared between HR, legal, safety, security, and physical real estate functions in a fragmented manner. This lack of coordination often leads to gaps in coverage and inconsistent interpretations of policies and regulations. Individuals lacking medical expertise often struggle to understand practical implications of nuanced regulations pertaining to workplace safety, health screenings, and employee accommodation or return-to-work requests. This lack of knowledge can lead to increased non-compliance (resulting in fines, legal penalties, reputational damage) and poor employee health and safety outcomes (resulting in decreased employee morale, productivity and increased worker injuries/illness). The negative impacts can lead to significant cost, reputational harm, and potential injuries to employees.
Comparison of Organizations With and Without a Chief Medical Officer
| Aspect | With a CMO | Without a CMO |
| Employee Health Initiatives | Evidence-based programs improving productivity, reducing absenteeism | Fragmented or inconsistent approaches, leading to less effective outcomes |
| Financial Impact | Optimized health benefits and reduced injury claims and benefits spend | Missed cost-saving opportunities and higher health-related expenses |
| Regulatory Compliance | Expert navigation of OSHA, ADA, and other health/safety regulations | Increased risk of non-compliance, legal penalties, and reputational damage |
In today’s highly competitive business environment, investing in a Chief Medical Officer is a strategic imperative. CMOs bring expertise for not only regulatory compliance issues that are sometimes overlooked, but also for tangible savings and innovation to the health of the workforce. As organizations try to attract and retain top talent, integrating a culture of health and wellness to the company’s people strategy is more important than ever.
Contact Jeff at: [email protected] or his LinkedIn Profile.
References
- Goetzel RZ, Henke RM, Tabrizi M, Pelletier KR, Loeppke R, et. al. Do Workplace Health Promotion (Wellness) Programs Work? Journal of Occupational and Environmental Medicine 56(9):p 927-934, September 2014. | DOI: 10.1097/JOM.0000000000000276
- Ryan T, Rice V, Saunders J, and Limbrick S. Measuring the effectiveness of workplace health management programs: An Australian example. Prev Med Rep. 2018 Apr 23;11:56-62. doi: 10.1016/j.pmedr.2018.04.018. PMID: 29984139; PMCID: PMC6030229.