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.
From the Division of Health Policy and Management, School of Public Health, University of Minnesota, Minneapolis, Minn.
Address correspondence to: John A. Nyman, University of Minnesota, 420 Delaware St. SE, Box 729, Minneapolis, MN 55455-0392; E-mail: email@example.com.