Finding the ROI in Wellness

Concerned about the real economic consequences of the continued growth in health-care spending, more and more companies are trying to control these costs as much as they can through programs that emphasize the prevention of medical troubles. However, businesses are not content to simply throw money at the problem; they want to measure the financial return from their wellness programs. The challenge is finding the best way to do so.

Corporate wellness programs are nothing new. Companies have been trying for decades to steer employees toward healthier lifestyles in order to rein in health-care costs. Now, however, they're using new tools such as health risk assessments and incentives to identify the best programs for their particular workforce.

The evolving area of corporate wellness also has a new emphasis on measuring the financial return from these initiatives. And one of the most important requirements for achieving that goal is patience.

"ROI takes a number of years to materialize," says Jeff Dobro, M.D., a senior consultant with Towers Perrin in Parsippany, N.J. "In fact, the ROI during the first year is likely to be negative by at least 10 percent." However, Dobro suggests that companies that stay the course can generate a financial return that is one-and-a-half to two times the cost of these programs.