The business benefits of health promotion programs

Health promotion strategy lowers healthcare expenditure

The impact of the highmark employee wellness programs on 4-year healthcare costs. Naydeck BL, Pearson JA, Ozminkowski RJ, Day BT, Goetzel RZ. J Occup Environ Med. 2008. 50: 146–156.

Aim

To assess the effect of a health promotion program on healthcare costs over time.

Looked at

1,892 US-based employees who participated in an online and onsite health promotion program between 2002 and 2005; a risk-matched group of 1,892 nonparticipants were used as a control.

How?

Medical claims cost data were compared before program initiation and at study end for participants and nonparticipants.

Results

  • The total cost of healthcare grew more slowly between 2001 and 2005, and annual healthcare costs were lower for those who joined the wellness program than for nonparticipants.
  • Program participation was associated with a statistically significant saving of US$176.47 per person per year.
  • Over the four-year study $1.3 million was saved, which when compared with program expenses of $808,403 yielded a return on investment of $1.65 for every $1 invested.

What does this mean?

Work-based health promotion strategies can lower future healthcare costs and are associated with a positive return on investment, which should encourage employers to take a proactive stance in lowering their employees' health risks.