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Workplace Wellness Programs Can Generate Savings

Author

Listed:
  • Baicker, Katherine
  • Cutler, David M.
  • Song, Zirui

Abstract

With health care expenditures soaring, there is increasing interest in workplace-based disease prevention and health promotion as a means of improving health while lowering costs. We conduct a critical meta-analysis of the literature on costs and savings associated such programs, focusing on studies with particularly rigorous methods and examining effects on health care costs and absenteeism. We find that medical costs fall about $3.27 for every dollar spent on wellness programs, and absentee day costs fall by about $2.73 for every dollar spent. This average return on investment suggests that the wider adoption of such programs could prove beneficial for budgets and productivity as well as health outcomes.

Suggested Citation

  • Baicker, Katherine & Cutler, David M. & Song, Zirui, 2010. "Workplace Wellness Programs Can Generate Savings," Scholarly Articles 5345879, Harvard University Department of Economics.
    • Handle: RePEc:hrv:faseco:5345879
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    References listed on IDEAS

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    1. A. J. Culyer & J. P. Newhouse (ed.), 2000. "Handbook of Health Economics," Handbook of Health Economics, Elsevier, edition 1, volume 1, number 1.
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