Decrease Healthcare Costs
Font Size 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

Your company can have an impact on America's healthcare.

Reducing Healthcare Costs

  • 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

Back to top

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.


enlarge chart

enlarge chart

 


Back to top

References:

  1. Chapman LS. Meta-evaluation of worksite health promotion economic return studies. The Art of Health Promotion. 2003;6(6):1-10.
  2. Aldana SG. Financial impact of health promotion programs: a comprehensive review of the literature. Am J Health Promotion. 2001;15(5):296-320.
  3. 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.
  4. 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.
  5. 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
  6. Mahoney JJ. Role of employer and health plan in disease management. Presentation to National Business Coalition on Health. January 19, 2006.
  7. 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.