Estimating the return-on-investment from changes in employee health risks on the Dow Chemical Company's health care costs.
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.
Goetzel
Ron Z
RZ
Medstat and Cornell University, Washington, DC, USA.
Ozminkowski
Ronald J
RJ
Baase
Catherine M
CM
Billotti
Gary M
GM
D000328:Adult; D002617:Chemical Industry / Q000191:economics*; D003710:Demography; D004526:Efficiency; D017049:Employer Health Costs; D005260:Female; D005102:Health Expenditures / Q000706:statistics & numerical data*; D006293:Health Promotion / Q000191:economics*; D006305:Health Status Indicators; D006801:Humans; D007449:Investments; D008297:Male; D008824:Michigan; D008875:Middle Aged; D017059:Models, Econometric; D009786:Occupational Health Services / Q000191:economics*; D019982:Organizational Case Studies; D012044:Regression Analysis; D018570:Risk Assessment / Q000191:economics* / Q000379:methods; D012307:Risk Factors; D000078329:Workforce