Applying Finance to Health Care: ROI of Wellness Programs

A new report from Health Fairs Direct, a corporate health and wellness events provider, asks the very important question: What is the most effective way to control rising healthcare costs?

While they might be somewhat self-interested given their line of work running health and wellness events, the return on investment analysis should inform any company tackling this issue. The Connector has launched a wellness program recently and should examine this study for any best practices.

The report analyzed 50 studies of the wellness programs offered at different organizations including Johnson and Johnson, Citibank, DuPont, Duke University and The California Public Retirees System.

Here are the six best wellness initiatives Health Fairs Direct identified as producing the the greatest ROI:

1. Health risk assessments — $6.04 for every $1 spent on it
2. Fitness programs — $4.90
3. Wellness coaching — $4.90
4. Smoking cessation — $3.50
5. Flu shots — $2.10
6. Obesity management — $1.17

Pioneer’s June 2011 report on Business Solutions to the Health Care Crunch highlights the potential savings  for private companies that can come with a well designed wellness program.