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J Occup Environ Med. 2005 Aug;47(8):759-68.

Estimating the return-on-investment from changes in employee health risks on the Dow Chemical Company's health care costs.

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1
Medstat and Cornell University, Washington, DC, USA.

Abstract

OBJECTIVE:

We sought to estimate the impact of corporate health-management and risk-reduction programs for The Dow Chemical Company by using a prospective return-on-investment (ROI) model.

METHODS:

The risk and expenditure estimates were derived from multiple regression analyses showing relationships between worker demographics, health risks, and medical expenditures.

RESULTS:

A "break-even" scenario would require Dow to reduce each of 10 population health risks by 0.17% points per year over the course of 10 years. More successful efforts at reducing health risks in the population would produce a more significant ROI for the company.

CONCLUSIONS:

Findings from this study were incorporated into other components of a business case for health and productivity management, and these supported continued investments in health improvement programs designed to achieve risk reduction and cost savings.

PMID:
16093925
[Indexed for MEDLINE]
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