Decrease Healthcare Costs

Case Studies

Learn how others are improving health and decreasing the costs of healthcare with value-based health management programs.

City of Asheville Pitney Bowes Diabetes Ten City Challenge

Check out these podcasts:

Font Size A A A | Print Page

The Economic Value of Health Management Programs

The economic value of investing in employee health management programs is well documented.

Findings regarding 42 worksite health promotion studies average¹:
- 28% reduction in sick leave absenteeism
- 26% reduction in health costs
- 30% reduction in workers' compensation and disability management claims costs
- $5.93-to-$1 return-on-investment ratio
The average return-on-investment ratio of 72 worksite health promotion program studies was $3.48-to-$1 through reduced healthcare costs.²
A comprehensive health management program at Citibank realized a $4.56-$4.73-to-$1 return-on-investment in reduced total healthcare costs.³
Motorola's Global Wellness Initiatives realized a $3.93-to-$1 return-on-investment in reduced lifestyle-related medical expenses and disability-related claims.⁴
Union Pacific Railroad's Project Health Track focused on a 1% reduction in 10 risk factors for chronic conditions achieved per year over 10 years. It calculated a $4.07-to-$1 return-on-investment over 10 years if the company maintained current performance levels.⁵
Pitney Bowes has demonstrated a 6% reduction in total medical costs and approximately a 50% reduction in disability days for employees with diabetes after a value-based health management initiative.⁶ Learn more about the Pitney Bowes case study.
Influenza vaccination programs targeted to adults younger than 65 years of age have demonstrated reductions of:
- 34% to 44% in physician visits
- 32% to 45% in lost workdays.⁷
In the treatment of irritable bowel syndrome (IBS), cost modeling predicted a positive benefit-to-cost ratio of $3.75-to-$1, when medication therapy was implemented and productivity loss avoided.⁸

Controlling Chronic Diseases

Chronic diseases are overwhelming healthcare. But there is hope. Prevention and disease management efforts could help save the United States $1.1 trillion in healthcare costs by 2023.⁴ Control chronic diseases before they control your organization. Invest in value-based health management.

References:

Chapman LS. Meta-evaluation of worksite health promotion economic return studies. The Art of Health Promotion. 2003;6(6):1-10.
Aldana SG. Financial impact of health promotion programs: a comprehensive review of the literature. Am J Health Promotion. 2001;15(5):296-320.
Ozminkowski RJ, Dunn RL, Goetzel RZ, Cantor RI, Murnane J, Harrison M. A return on investment evaluation of Citibank, N.A., health management program. Am J Health Promotion. 1999;14(1): 31-43.
Milken Institute. An unhealthy America: the economic burden of chronic disease. Santa Monica, CA: Milken Institute, 2007. Report available at www.milkeninstitute.org. Accessed November 14, 2007.
Goetzel RZ. Examining the value of integrating occupational health and safety and health promotion programs in the workplace. National Institute of Occupational Safety and Health. 2005:1-61. http://www.cdc.gov/niosh/worklife/steps/pdfs/backgroundpapergoetzeljan2005.pdf
Mahoney JJ. Role of employer and health plan in disease management. Presentation to National Business Coalition on Health. January 19, 2006.
Bridges C, Harper SA, Fukuda K, et al. Prevention and control of influenza. Centers for Disease Control and Prevention. 2003;52(RR08):1-36. http://www.cdc.gov/mmwr/preview/mmwrhtml/rr5208a1.htm. Accessed 8/21/07.
Smith DG, Barghout V, Kahler KH. Tegaserod treatment for IBS: a model for indirect costs. Am J Manag Care. 2005;11(1):s43-s50.