Health and Wellness Management Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location, scale of business, type of business, and industry play a vital factor in analyzing the rate benchmarking of the health and wellness management services category.

Geographical location considerations can have a significant impact on the rates of services. For instance, wellness programs in the U.S. can cost between USD 150 - 2,000 per employee. In Sweden, the cost of corporate wellness programs is very high, on average, being USD 3,000 per employee annually. This is due to the programs' well-established advantages and proper documentation. Workers with access to these programs have lower sick leave rates and are more productive. Additionally, they typically work for their employer for a longer amount of time.

Similarly, the cost of employee wellness programs in New Zealand is contingent upon the program type and company size. On average, companies spend USD 150 per employee. This covers activities linked to wellness such as health screenings, exercise classes, and other related events. Wellness programs in India cost between USD 500 and 1,000 per employee. 

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, workplace health coach/ wellness coach at Virgin Pulse, Limeade, and Wellness Corporate Solutions receive a 15% - 20% higher base salary compared to the salary received by wellness coaches working in companies such as Privia Health and Truworth Wellness. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the health and wellness management services category over the last two years:

• In October 2023, Virgin Pulse announced a strategic collaboration with AWS to strengthen its health and wellness platform. Virgin Pulse will utilize Amazon Web Services cloud features such as generative AI and ML capabilities and analytics to provide advanced personalization across its proprietary “Homebase for Health” platform. AWS services such as AWS Glue, Amazon Bedrock, Amazon Personalize, and AWS Lambda are also being used by Virgin Pulse.

• In September 2023, Virgin Pulse announced the expansion of its clinical/medical health support segment in its “Homebase for Health” platform. The integrated suite of services called, “VP Transform” is embedded in the platform and will help to address chronic diseases such as blood pressure, weight management, and prediabetes. This integrated solution will help employers to avoid any complications and minimize costs associated with these problems. Virgin Pulse aims to launch this by early 2024.

• In January 2023, Privia Health reported the launch of its two new accountable care organizations – known as Privia ACOs in Delaware and North Carolina in the U.S. With this, the company increased its total ACOs numbers to nine – that can serve locations including California, Columbia Delaware, Georgia, Florida, Montana, Maryland, North Carolina, Texas, Virginia, and Tennessee. This will include 2,500 independent providers offering effective care to more than 191,700 beneficiaries of Medicare.

• In March 2022, Vitality Group announced the addition of Health Fitness’s services to its Gateway Flex program. The additions will help employees improve their social, physical, and mental wellness from Health Fitness coaches. Gateway Flex is a unique program that provides employers with enough flexibility thereby minimizing complexity and optimizing resource utilization. Employers only pay for the solutions that their employees utilize.