The novartis health index: A method for valuing the economic impact of risk reduction in a workforce

Emily Kelly, Ginger S. Carls, Greg Lenhart, Edward Mauceri, Daniel Columbus, Ann Cavuoti, Ron Z. Goetzel

Research output: Contribution to journalArticle

Abstract

Objectives: To develop a calculator that measures the potential cost impact of changes in health risks and presents results graphically. Methods: Demographic and health risk data for Novartis employees were input into a calculator that estimated employer medical care, short-term disability, absenteeism, and presenteeism costs associated with risk prevalence, based on a previous cross-sectional analysis of the association between risks and costs. Estimated costs were presented as a relative score, the Novartis Health Index, which is a measure of the overall costs associated with the risk profile of a population of interest. Results: The population of Novartis employees had an index score of 81.5 (out of 100), indicating a relatively healthy risk profile, and baseline annual costs of $9619 per employee. Risk reduction of 1% and 10% for tobacco, alcohol use, and emotional health risks had the potential to generate annual savings of $91,500 and $915,000, respectively. Conclusions: The Novartis Health Index framework allows employers to track performance relative to health risk management using a single, accessible, user-friendly measure. Copyright 2010

Original languageEnglish (US)
Pages (from-to)528-535
Number of pages8
JournalJournal of occupational and environmental medicine
Volume52
Issue number5
DOIs
StatePublished - May 2010
Externally publishedYes

ASJC Scopus subject areas

  • Public Health, Environmental and Occupational Health

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