How to Calculate the ROI Of Screening Programs
In my previous blog, we discussed the variables that should be considered in calculating the ROIs of vaccination programs. Now let´s focus on how to calculate the ROI of Screening Programs.
Like vaccination programs, there are a variety of screening programs to choose from: blood pressure, cholesterol, weight & BMI, glucose, stress, Covid, mammograms, colon, etc. Some can be performed at health fairs or within employer premises, while others require medical diagnostic equipment.
What do they all have in common? In short, they are all intended to catch medical and behavioral issues early before they develop into something more serious. So, what variables should be considered in measuring their ROIs?
Variables to be considered to calculate the ROI of Screening Programs
The “Program Investment” would be the cost of the program, which includes the cost of the test, equipment, staff to administer the screening, and employee communications material.
The future savings or cost reductions used in the ROI calculation would be the averted costs of the physical or behavioral condition that would be generated if these conditions are caught early.
These cost reductions could occur quite quickly for conditions that develop over the short term, such as Covid or behavioral conditions, or they can develop more slowly, over the medium or longer term, such as Diabetes, Breast Cancer, or CHD.
Why is the term so important? Because, over time, we must consider the inflation rate of medical treatment costs and/or premiums, and the opportunity cost of money.
But medical costs or impact on the health care plan premiums are just one of the “big six” costs impacted by prevention programs that I keep mentioning in my blogs.
What are the other five? They include absenteeism, presenteeism, replacement costs (including training and relocation costs of new employees who replace employees who leave an employer due to a condition), accidents, and disability.
Each of these costs are impacted differently, depending on the condition. Also, the participation and effectiveness rates of the screening must be considered in calculating the ROIs of these programs. So, what is left? Just because a screening program identifies a condition, it is too early to declare victory.
Some action must be taken to “treat” the condition. This is where the real work begins on the part of the employee. So, in calculating the ROI of the program, in addition to considering the effectiveness rate of the screening in identifying a condition, one must consider the probability of the employee with the condition taking some action to address the condition.
Let us make it easy for you
Again, I reiterate that the days of convincing decision-makers to approve prevention programs based on back-of-the-envelope calculations, or “think of the suicide or heart attack that we prevent” are over. Certainly, tools like the WELLCAST ROI™ Calculator will make your job a lot easier, if not more credible.
Based on my 25 years of experience in calculating the ROI of prevention programs, the ROIs of screening programs are exceptional. Even more so if action is taken to address the conditions that are uncovered.
For more information on calculating the ROI of prevention programs please check out our website: www.wellcastroi.com.
