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

Ron Z. Goetzel, Ronald J. Ozminkowski, Catherine M. Baase, Gary M. Billotti

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish (US)
Pages (from-to)759-768
Number of pages10
JournalJournal of occupational and environmental medicine
Volume47
Issue number8
DOIs
StatePublished - Aug 2005
Externally publishedYes

ASJC Scopus subject areas

  • Public Health, Environmental and Occupational Health

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