• Motorola's wellness program saves the company $3.93 for every $1 invested.
• Providence Everett Medical Center, Everett, Washington, saved an estimated
$3 million or a cost-benefit ratio of 1 to 3.8 over 9 years of an outcome-based employee health benefit program called
"The Wellness Challenge." By offering financial incentives ($250 - $325) to employees who meet specific organizational and
employee health initiatives, the program continues to meet cost containment expectations in the area of healthcare use, sick
time, and injuries, while improving health habits, and self-care practices. During the first four years of the program, there
was a 28% average reduction in healthcare utilization, compared to nine other Providence hospitals that were used as a control
group.
• Du Pont saw that each dollar invested in workplace health promotion
yielded $1.42 over two years in lower absenteeism costs at Du Pont Co. Absences from illness unrelated to the job among
45,000 blue-collar workers dropped 14% at 41 industrial sites where the health promotion program was offered, compared with
a 5.8% decline at 19 sites where it was not.
• Travelers Corporation claims a $3.40 return for every dollar invested
in health promotion, yielding total corporate savings of $146 million in benefits costs. Sick leave was reduced 19% during
the four-year study. In addition to improving the overall health of 36,000 employees and retirees by reducing poor health
habits and increasing good ones, The Travelers Corp. realized cost savings by decreasing the number of unnecessary visits
to a doctor and emergency rooms. In a similar but smaller study, members of a Traveler's fitness center were absent from work
significantly fewer days than non-members.
• The Stay Alive & Well program at Reynolds Electrical & Engineering Company , based in Las Vegas, cost $76.24 per
employee during the two years it has been in operation. Over half of the 1,600 employees participated (with up to 80% participation
rates in the intervention program). Participants significantly lowered cholesterol levels, blood pressure, and weight and
experienced 21% lower lifestyle-related claim costs than the non-participant. Resulting savings: $127.89 per participant with
a benefit to cost ratio of 1.68 to 1.
• With medical costs per employee at $6,000, nearly twice the national
average, Union Pacific Railroad introduced the concept of personal health management
to its 28,000 employees, mostly union and blue collar, in 19 Western and Southern states. Beginning with a modest medical
self-care initiative at an annual cost of $50 per person, the program achieved a net savings of $1.26 million. In addition,
a voluntary program to help employees lower health risks, resulted in a cost-benefit ratio of 1 to 1.57 after one year.
Employees in a treatment group lowered their risk of high blood pressure (45%) and high cholesterol (34%); others moved out
of the at-risk range for weight problems (30%); and 21% stopped smoking.
• A medical claims-based study of 72,000 people insured through 285
Wisconsin school districts found a lower demand for medical services
among those with access to disease prevention and self-care programs. Reductions in medical services resulted in savings
for the Wisconsin Education Insurance Group of as much as $4.75 for each $1 spent. Higher savings were found in the group
that received access to a 24-hour phone-based nurse advice line, a self-care reference book, and health education materials.
As reported by NutriScience
Corporation http://www.nutrisciencecorp.com/Health-ROI.html 7/7/05
Compiled by National Work-Life Initiative
|
Health and Well-Being |
|
PepsiCo |
Fitness Program |
The company's fitness program produced a 300% ROI ($3.00 for every $1.00
invested) **** |
|
Finnish Hospital Study |
Focus on interpersonal treatment |
A study of 4,000 hospital workers in 10 hospitals in Finland found "attention to
interpersonal treatment" decreased the risk of ill health. Male employees who felt they were treated unfairly at work were
41% more likely to take sick leave; women were 12% more likely than those who felt respected. ** |
|
DuPont |
Short-term and Long-term Disability Program |
The company found a 14% decline in disability days over a 24-month period
due to lower disability costs, which offset program costs during the first year. The savings provided return of $2.05 for
every dollar invested. *** |
|
Applied Materials |
Fitness Center |
Fitness center participants had medical payments one fifth lower, accident-related
disability costs a third lower and workers' comp costs per claim 79% lower than non-participants** |
|
Steelcase |
Wellness |
55% lower medical claims
for participants in their wellness program over six years** |
|
Johnson & Johnson |
Corporate Wellness Program |
A nine-year study of the corporate wellness program saved $225 per employee
per year in reduced hospital admissions, mental health visits and outpatient services, even after deducting the cost of paying
employees to participate.** |
•
Citibank’s health management program reported
an estimated return on investment of $4.56 to $4.73 saved per $1 spent on the program (AJHP, Ozminkowski, Goetzel et al.,
1999).
•
Over 5 years, Blue Cross Blue Shield of Indiana realized
a 250% return on its corporate fitness program investment, yielding a ROI of $2.51 for every $1.00 invested (AJHP, Kenneth
R. Pelletier, March/April 1991).
The following chart demonstrates the return per dollar invested for
seven well-known companies that implemented wellness programs (www.fitresource.com).
©1992, IRSA, the Association of Quality Clubs