What is the economic value of Occupational Health Services? To answer this question, we have to do Cost benafit analysis (CBA) as well as Cost Effective analysis (CEA). However, we will address CBA and CEA in future topic.
In one article titled: " Demonstrating the economic value of occupational health services: P. Miller et al ;published in Journal of Occupational Medicine Vol.52 No. 8 pp 477 -483,2002:-
According to COST model evaluation method, the expected benefits of OH services are:
1. Maximise health and morale of employees
2. Maximise performance and increase productivity
3. Minimise medico-legal costs
4. Enhance workplace safety
5. Reduce sickness absence.
So, inorder to evaluate any OH services, you have to weigh it on the above benefits.
Another way to see the economic value of OH services is by using CONTINGENT VALUATION method, which put OHS as a form of insurance policy, which individual business unit managers chose to purchase at different levels of cover. In this concept, the insured must provide what is called Willingness To Purchase (WTP) the OHS and Willingness to Accept (WTA) the Risk of ignoring and neglecting OHS.
So, let us check whether our company is willing to invest in OHS in order to have Healthy Workforce and safe workplace.