A return-on-investment analysis of the health promotion program at the University of Minnesota

OBJECTIVE: To determine the return-on-investment, if any, for the health promotion program adopted by the University of Minnesota in 2006. METHODS: Regression analysis was used to determine the cost-savings in annual health care expenditures associated with three components of the program: a risk assessment, a risk management program, and a disease management (DM) program. Differences-in-differences equations with random effects were used to deal with selection bias. RESULTS: The analysis suggests that the DM reduced spending by about $1375 per year for each participant. The risk assessment and risk management components had no effect on spending in this initial year. CONCLUSIONS: DM reduced health care spending at the University of Minnesota, but not enough to generate a positive return-on-investment. A number of factors may qualify this conclusion.