Success you can measure
Metrics to demonstrate return on investment
ROI: Measuring the Success of a Health Management Program
One Viverae client realized a 157 percent ROI in the first year of the wellness program.
More and more companies are seeking corporate health management solutions, yet many wellness programs are not reaching their full potential because the necessary data to support the program is just not there. Businesses today should expect more from a health management provider. It is simply not enough to deliver a customized health program. Metrics should be in place to make workplace wellness a true benefit for employers and employees.
At Viverae, measuring the success of a health management program for each client is at the heart of what we do. Our first step is to identify and understand the employee population’s modifiable health risk factors. The presence and prevalence of modifiable risk factors can increase utilization of medical services and increase unnecessary health care costs. Based on each group’s risk factors, we design a strategy to reduce those risks and thereby reduce overall health-related business costs — including health insurance, absenteeism and presenteeism.
| Overview | Population | ||
|---|---|---|---|
| Year | 2008 | 2009 | Change |
| # Eligible Members | 654 | 616 | -5.8% |
| # Completing MHA & Bio | 512 | 497 | -2.9% |
| % Participation | 78.3% | 80.7% | 2.4% |
| Average Health Score | 76.4 | 80.4 | 5.2% |
| Average # Risk Factors | 2.9 | 2.2 | 24.1% |
| Key Success Metrics | 2008 | 2009 | Change |
| % of Group at High Risk (Based on Health Score) | 21.4% | 9.6% | -11.8% |
| % of Group at Low Risk (Based on Health Score) | 31.8% | 50.9% | 19.1% |
| % with 5+ Risk Factors (High) | 23.7% | 9.4% | -14.3% |
| % with 3-4 Risk Factors (Mod) | 32.8% | 28.4% | -4.4% |
| % with 0-2 Risk Factors (Low) | 41.1% | 61.9% | 20.8% |
| Investment Rate for Viverae Services | $134.00 PE/PY | ||
| Estimated Investment in Viverae Services | $82,544 | ||
| Estimated Incentives Investment | $179,500 | ||
| Estimated Total Investment | $262,044 | ||
| Imputed Savings from Risk Factor Reduction | $412,000 | ||
| Estimated ROI | 1.57:1 | ||
To calculate the ROI of risk factor reduction, we input the cost of risk factors based on a combination of the client’s actual health plan costs linked to research data. As an example, in exhibit A, our client’s program included Member Health Assessments (MHAs), biometric screenings, personal outreach with required health advising sessions, webinars and compliance tracking. For this example, the incentive rewards are premium credits ranging from $35 to $85 per employee, per month. The imputed-risk factor-based ROI was 1.57:1.
