Software Tech, Inc.

To: Aaron Walsh, Director, Human Resources

From: Daniel Hanek, Manager, Human Resources
Subject: On-Site Fitness Center

RISING COSTS OF HEALTH INSURANCE

In the US today, the cost of healthcare insurance is increasing, making it for harder for people to
keep up with the price of it. According to the data from CMS (Center for Medicare and
Medicaid) National healthcare expenditures rose 5.3 percent in 2014 to $3 trillion, or $9,523 per
person, accounting for 17.5 percent of gross domestic product (Becker, 2016).
Like any other business, Software Tech is feeling the strain of increased costs to healthcare. I
believe that the solution to help with the costs of healthcare insurance is to encourage a more
proactive and healthy lifestyle in our organization. Giving the opportunity for that is the first step
in reducing the cost of healthcare.
A fitness center at the office would be our best solution. According to the NIH (The National
Institute of Health), unhealthy adults spend 42 percent more directly on healthcare costs than
adults who are at a healthy weight (NIH, 2017). With a healthy outlet at the office, like a fitness
center, employees would be able to focus better on their work (increasing productivity) and feel
more rested at home (reduced absenteeism). The fitness center would also offer classes on
healthy living habits and practices (examples like; dieting, exercising, proper sleep cycles, etc.)
that would positively affect our employees and reduce our health insurance costs at the same
time.
BUILDING THE ON-SITE FITNESS CENTER
There is two ways we can go about the construction of the new fitness center: adding onto the
office building, or building from the ground-up near the office. The somewhat expensive but
much more convenient choice would be to add onto the already existing office building; it would
allow employees to walk to the gym directly from their offices instead of having to go across the
lot or through a tunnel connecting the two buildings.
THINGS TO CONSIDERS
I believe the answer for our costs in health insurance can be answered with a fitness center
addition to the office. It would be a kill two birds with one stone scenario; reducing our long-
term costs on healthcare, while at the same time increasing employee happiness/productivity in
the workplace.
 REFERENCES
Becker. (2016, September 13). 17 statistics on the current state of US healthcare spending,
finances. Retrieved December 01, 2017, from
https://www.beckershospitalreview.com/finance/17-fascinating-statistics-on-the-
current-state-of-us-healthcare-spending-finances.html
Carter, B. (2014, July 31). The Cost of Building a New Fitness Facility. Retrieved November 25,
2017, from http://www.clubindustry.com/design/cost-building-new-fitness-facility
CDC. (2015, June 04). Physical Activity and Health. Retrieved November 25, 2017, from
https://www.cdc.gov/physicalactivity/basics/pa-health/index.htm
CMS. (2017, June 14). NHE-Fact-Sheet. Retrieved November 25, 2017, from
https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-
reports/nationalhealthexpenddata/nhe-fact-sheet.html
Hunt, T. (2016, October 25). 4 Fundamental Workplace Changes of the Last 20 Years (R., Ed.).
Retrieved December 03, 2017, from http://www.successful-blog.com/1/4-fundamental-
workplace-changes-of-the-last-20-years/
Ogden, C. (2017, August 01). Overweight & Obesity Statistics. Retrieved December 01, 2017,
from https://www.niddk.nih.gov/health-information/health-statistics/overweight-obesity
Smyth, A. (2017, June 03). How Much Has the Workplace Changed in The Last 10 Years?
Retrieved December 02, 2017, from http://engageforsuccess.org/much-workplace-
changed-last-10-years
Zoldak, A. (2017). How to Start My Own Gym Business. Retrieved December 01, 2017, from
http://smallbusiness.chron.com/start-own-gym-business-4854.html