Disease management program saved company $3.78 in healthcare costs per $1 invested, RAND study shows

A new study from the RAND Corporation puts a different spin on prevention.

Examining a large employee wellness program offered by PepsiCo, researchers found efforts to help employees manage chronic illnesses saved $3.78 in healthcare costs for every $1 invested, mainly by lowering hospital admission rates. By comparison, lifestyle management components of the company’s Healthy Living program did not deliver returns that were higher than costs.

A key takeaway: Employers seeking a healthy return on investment from wellness programs should target employees who already have chronic diseases. The results are published in the January edition of the journal Health Affairs.