How much does employee mental health cost to hospitals?

Last year, 16.2 million workers experienced mental health disorders leaving no doubt that US workforces are affected by psychological distress. While 61% of US workers reported severe psychological distress, managers tend to stay unaware of the hidden costs associated with these conditions. This blog quantifies this topic into numbers. 


How does this problem show at work?

Absenteeism, increased healthcare expenses, turnover and loss of productivity are the main consequences of not keeping an eye on employees' mental wellbeing.


What’s the price employers pay?

If we bring the previous consequences to numbers, we find out that employers in the healthcare industry spend a national average of over $4,700 a year in extra days of work missed and over $5,700 a year in turnover related costs. Additionally, mentally distressed workers cost employers over $2,800 more in healthcare services per year than their peers. Resulting in $465,984 in lost time, $558,624 in job turnover & re-training and $518,148 in healthcare, giving a total cost of $1,542,756.

(These results are the national average on healthcare facilities with 1000 employees.
Source: National Safety Council )

Stats also show that per every 1000 workers, 75 employees suffer with depression, 63 suicidal ideation, 44 with anxiety and 32 workers with substance use. 


What 's to be done?

Effective worker treatment for mental illness can lead to lower medical costs, decreased disability costs, lower absenteeism rates and increased productivity.

The National Safety Council estimates that for every $1 invested in mental health treatment, there’s a $4 return in improved health and productivity.


Providing employees with protocols, planning and tools to address their safety can help improve their mental health and therefore the hospital’s facility service delivery. 

In Kwema we aim to give workers peace of mind so that they can focus on saving lifes. We build wearable technology that’s easily adoptable and designed to call for help in the moments where every second counts. Take a look at our Kwema Smart Badge Reel™ and learn more about how we can help you. 


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