Corporate Wellness ROI

Corporate Wellness Program ROI

Corporate Wellness ROI

Corporate Wellness ROI is a topic frequently discussed by Corporate Wellness Coordinators, Health Educators and others that work within the Corporate Wellness industry. Fortunately the now exists a significant volume of valid research that clearly and without a doubt demonstrates the positive Corporate Wellness ROI generated by well designed, comprehensive corporate wellness programs.

Corporate Wellness ROI varies, but generally one can expect to save $3 to $4 for every dollar spent on a wellness program. Corporate Wellness ROI tends to increase as the wellness programs become more comprehensive. Corporate Wellness ROI also increases as participation increase and participation is often driven by corporate wellness incentive programs. Thus, to further increase corporate wellness ROI one simply needs to add effective corporate wellness incentives programs.

To learn more about Corporate Wellness ROI you can download and view the following studies related to corporate wellness ROI:

  • Meta-Evaluation of Worksite Health Promotion Economic Return Studies [PDF]
  • Prevention Makes Cents [PDF]
  • Physical Activity Fundamental to Preventing Disease [PDF]

Corporate Wellness ROI and Facts

  • Aldana, in a review of 72 studies, found an average corporate wellness ROI of $3.48 when considering health care costs alone; $5.82 per $1 when examining absenteeism, and $4.30 when both outcomes are considered. 1
  • In a 2001 review of health costs in over 2 million employees, University of Michigan researchers reported that increases in costs when groups of employees moved from low risk to high risk were much greater than the decreases in costs when groups moved from high risk to low risk. In other words, programs designed to keep healthy people healthy will likely provide the greatest corporate wellness ROI. 2
  • An analysis of the records of 22,838 subjects enrolled in Citibank’s Health Management Program indicates a corporate wellness ROI of between $4.56 and $4.73 per dollar spent on the program. 3
  • 75% of health care spending pays for illnesses which are preventable. 4
  • Over 95% of our nation’s health expenditures, including most of the billions of dollars employers spend on health coverage, is committed to diagnosing and treating disease only after it is manifest. 5
  • Of the $585 billion that private payers expended for medical services in 1997, about 60 percent ($348 billion) was spent by employers and employees to purchase health insurance. 6
  • Work injuries cost $121 billion in medical care, lost productivity and wages. At least 100 million workdays are lost each year to lower back pain at a cost to employers of about $20 billion. 7
  • In many instances, medical care costs can consume half-or even more-of corporate profits. 8
  • The evidence is very strong for average reductions in sick leave, health plan costs and workers’ compensation and disability costs of slightly more than 25%. This has profound implications for all American employers and should eventually lead to the institutionalization of appropriately designed and executed corporate wellness programs in all working populations. Based on these results, corporate wellness programs represent one of the key strategies for maintaining the productivity of American workers at a time when their average age is increasing faster than most of our global competitors. 9
  • Interestingly, the positive corporate Wellness ROI from health promotion interventions results from a successful change of just 3-5% of total risks across the population. 10
  • A publication by the University of Michigan reported a positive Corporate Wellness ROI (2.3 to 1) from health promotion participation based on reduced disability days alone. 11
  • A modest 15-minute increase in moderate and/or vigorous physical activity in boys and girls could reduce the prevalence of childhood obesity by roughly 50%. 12
  • Healthcare Costs Associated With Heart Disease, Work Injuries, and Back Pain 13

Corporate Wellness ROI: Sources

  1. Aldana SG. American Journal of Health Promotion 2001; 15(5): 296-320.
  2. Edington DW. American Journal of Health Promotion 2001; 15(5): 341-349.
  3. Ozminkowski RJ, Dunn RL, Goetzel RZ, Cantor RI, Murnane J, Harrison M. A ?Return on Investment Evaluation of the Citibank, N.A., Health Management Program. Amer. J Health Promotion. Sep/Oct 1999: 5(I14).
  4. The Centers for Disease Control and Prevention (CDC). The Burden of Chronic Diseases and Their Risk Factors, February 2002. Fries, New England Journal of Medicine, 1993.
  5. Partnership for Prevention
  6. Igelhard, New England Journal of Medicine, 1999.
  7. The Centers for Disease Control and Prevention (CDC). The Burden of Chronic Diseases and Their Risk Factors, February 2002.
  8. Rosen, The Healthy Company.
  9. Chapman L. Meta-Evaluation of Worksite Health Promotion Economic Return Studies. Art of Health Promotion Newsletter 6(6):January/February 2003.
  10. Gold DB, Anderson DR, Serxner SA. Impact of a telephone-based intervention on the reduction of health risks. Am J Health Promot. 2000;15:97-106.
  11. Schultz AB, Lu C, Barnett TE, et al. Influence of participation in a worksite health-promotion program on disability days. J Occup Environ Med. 2002;44:776-80.
  12. Ness AR, Leary SD, Mattocks C, Blair SN, Reilly JJ, et al. (2007) Objectively measured physical activity and fat mass in a large cohort of children. PLoS Med 4(3): e97.doi:10.1371/ journal.pmed.0040097.
  13. Honeycutt D (ed.). Absolute Advantage (WELCOA). 2006; 5(4). P. 9.