|
<br />The implementation of a WelinesslFitness Program is not free. There WILL BE, significant cost benefits to initiating this
<br />program. .Wellness programs have repeatedly been shown to provide long-term savings. Many large corporations,
<br />including AT&T Communications, Union Pacific Railroad, DuPont Chemical Company, and The Travelers Corporation
<br />tout returns of $1 .50 to $3.40 for every dollar invested in their wellness efforts. A recent study addressing the
<br />effectiveness of a wellness program for an offshore oil exploration company demonstrated a threefold reduction in back
<br />injuries, as well as dramatic reductions in lost workday injuries (2.6-fold), non-lost work day injuries (12-fold) and first aid
<br />cases (2.3-fold); at a cost savings of $800,000 and a return on investment of $2. 51. The value of this investment has
<br />been shown in the fire service as well. In January 1997, the City of Phoenix, Arizona conducted an audit of their disability
<br />retirement program for all city employees. The annualized cost of disability pensions for firefighters was $100,000; for
<br />police officers, with twice as many personnel as fire department, the annuafized cost was $721,000; and, for general city
<br />employees, with five times as many personnel as the fire department, the annualized cost was $623,000. The reduced
<br />disability pension cost for the Phoenix Fire Department reflects their twelve-year commitment to an effective wellness
<br />program and thorough rehabilitation for all fire fighters..
<br />
<br />"The fire service's greatest asset is not equipment, apparatus or stations, but rather its personnel. It is through personnel
<br />that the fire departments serve the public, accomplish their missions, and are able to make a difference in their
<br />communities. By committing to a wellness program the fire department gains the members' trust. This trust enhances
<br />every program and each call answered by the fire department. Therefore, placing a high priority on wellness makes
<br />sense for everyone including fire service personnel, taxpayers, and the public served."
<br />-ACTUAL COST BENEFIT ANAL YSIS-
<br />The PFD has spent time and much effort to determine the following figures and statistics to derive the cost benefit of
<br />FEMA investing $121,896 in a WellnesslFitness program for 54 firefighters in this rural community.
<br />
<br />PARTICIPANT HOURS ESTIMATE
<br />18 participants per shift times 1.5 hours per shift= 27 participant hours per shift
<br />27 participant hours times 365 shifts per year = 9,855 participant hours per year
<br />9,855 participant hours per year times average wage of $13.36 = $131,662.80 estimated cost benefit of the Paris Fire
<br />and Rescue WelinessIFitness Program per year.
<br />
<br />AMORITIZATION OF EQUIPMENT
<br />Total cost of equipment = $40,735 divided by 10 years of useable life of equipment = $4,073
<br />
<br />COST OF IMMUNIZATIONS AND INITIAL PHYSICALS
<br />$57,456 = 54 initial physicals
<br />$23,706 = 54 initial immunizations
<br />
<br />FIRST YEAR'S RATIO OF COST FOR WELLNESS FITNESS PROGRAM
<br />$131,663 (estimated benefit) divided by $85,235 (estimated cost) = 1.54 ratio or a $1.54 benefit per dollar spent on the
<br />Paris Fire and Rescue WelinesslFitness Program.
<br />
<br />NEXT NINE YEARS RATIO OF COST FOR WELLNESS FITNESS PROGRAM
<br />$131,663 (estimated benefit) divided by [$21,600 (estimated cost of annual physicals) + $4,073 (amortized equipment
<br />cost)] = 5.13 ratio or a $5.13 benefit per dollar spent for the next nine years after the first year of implementation.
<br />
<br />SUMMARY OF COST BENEFIT ANALYSIS
<br />The first year will be the most expensive because of the initial expense of equipment and the initial physicals and
<br />immunizations. According to our analysis, for every FEMA dollar spent the program benefit will be $1.54 for the first year.
<br />This is considered to be an excellent retum on the dollar spent by FEMA for our WellnessIFitness program as an initial
<br />investment. For the next nine years, FEMA will really realize a more substantial return on each dollar spent, because the
<br />program benefit will be $5.13. This shows the Paris FD has done our homework and we are truly trying to make every
<br />cent you provide for our program count.
<br />
<br />-CONCLUSION-
<br />Any person who has ever enjoyed the opportunity of fighting a fire will undoubtedly concur that fire fighting requires
<br />intense physical exertion. Physical fitness is not only important to perform crucial fire fighter tasks such as: fire
<br />suppression, search and rescue, overhaul, salvage, high angle rescue, swift water rescue and EMS.
<br />
<br />Repeatedly, research has shown the need for high levels of aerobic fitness, muscular endurance, and muscular strength
<br />to perform safely and effectively in the fire service. The Paris Fire and Rescue Department is committing itself to the
<br />
|